VIJAYAWADA: The Andhra Pradesh Economic Development Board (APEDB) has signed a Memorandum of Understanding (MoU) with the UAE Food Cluster to promote investments, trade and exports.
The MoU was signed on Tuesday in the presence of Chief Minister N Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, materialising key commitments made during this year’s World Economic Forum in Davos.
The agreement aims to facilitate large-scale export of AP’s horticultural produce to international markets, while encouraging the UAE-based companies to invest in food processing and related industries in the State.
A UAE delegation also held discussions with the Chief Minister regarding the establishment of the Food Cluster in AP. The collaboration will support the establishment of food processing units for horticultural products such as mangoes, bananas, cocoa and other crops, besides promoting value-added products, exports and international trade.
As the first investment under this partnership, Dubai-based Flour Masters International has committed to invest Rs 100 crore in setting up a food processing unit at Gangadhara Nellore in Chittoor district. The facility will manufacture world-class food products for export to global markets.
Naidu showcases AP’s food processing and horticulture export potential to UAE Min
Flour Masters International currently exports its products to nearly 25 countries, and plans to use its AP facility as a major export hub.
Naidu said it was encouraging that the UAE, which had shown interest in investing in AP during the Davos summit, had moved swiftly to implement its commitments within six months.
He noted that the UAE Food Cluster would position AP as a major destination for food processing investments, exports and international trade.
The Chief Minister highlighted that AP ranks among India’s leading States in horticulture, aquaculture and information technology. Owing to its diverse agro-climatic conditions, the State produces a wide variety of horticultural crops throughout the year.
Agriculture and horticulture together contribute nearly 30% of AP’s Gross State Domestic Product (GSDP).
“The government is transforming Rayalaseema into a major horticulture hub through public and private investments worth Rs 1 lakh crore. The Indian School of Agriculture (ISA) is being established in partnership with Reliance,” he said.
Naidu informed the UAE delegation that AP currently has over 200 horticulture clusters, exporting products such as chillies, palm oil, cocoa and coffee.
The UAE Minister of Economy said AP offers exceptional opportunities, thanks to its rich river systems such as the Krishna and Godavari.
He praised Naidu as a visionary leader transforming Andhra Pradesh into a globally competitive investment destination.