UAE and Andhra Pradesh advance food investment pact

The UAE and Andhra Pradesh have moved a planned food-processing partnership into the implementation stage, opening talks on investments, agricultural technology, export infrastructure and more resilient supply chains.

More than 32 companies from the UAE and India joined a business forum organised by the UAE Food Cluster and the Andhra Pradesh government. The gathering brought food producers, agricultural businesses, logistics operators and technology companies together to identify projects across manufacturing, farming, seafood, cold storage and distribution.

The forum, held under the theme “Building Strategic Partnerships Across Value Chains”, coincided with a visit by a UAE economic delegation led by Minister of Economy and Tourism Abdulla bin Touq Al Marri. Andhra Pradesh Chief Minister N. Chandrababu Naidu, senior state officials and representatives of the Andhra Pradesh Economic Development Board also attended.

A memorandum of understanding signed by the UAE Food Cluster and the state’s Economic Development Board provides a framework for investment, trade, innovation and institutional cooperation. It covers sustainable production, value-added manufacturing, technology transfer, knowledge exchange and business missions.

The agreement also advances plans for a UAE-backed food cluster in Andhra Pradesh, an initiative discussed during Naidu’s meeting with Al Marri at the World Economic Forum in Davos in January. The proposed cluster is expected to connect farms, processors, cold-chain operators, ports and overseas buyers through integrated commercial networks.

Initial work will focus on building value chains for mangoes, bananas and cocoa, three products in which Andhra Pradesh has established production and export strengths. UAE-based Floor Masters International has proposed investing ₹100 crore in a food-processing facility at Gangadhara Nellore in Chittoor district.

The company, which supplies products to about 25 countries, plans to use the facility as an export base. The proposal is the first identified investment under the broader partnership and could serve as a test case for subsequent projects involving Emirati businesses.

Discussions at the forum covered seafood, aquaculture, dairy products, poultry, pulses, horticulture, food sourcing and distribution. Companies also examined cold-chain systems that could reduce spoilage between farms, processing centres, ports and retail markets.

Andhra Pradesh’s long coastline, commercial ports, agricultural output and links to Gulf markets have made the state a potential supply base for UAE food businesses. Stronger maritime connections could shorten delivery times while providing producers with access to consumers across West Asia and other markets served through UAE logistics networks.

Naidu presented opportunities in horticulture, aquaculture and food processing, while promoting Rayalaseema as a future horticultural centre. The state is seeking public and private investment in irrigation, storage, packaging, processing and branding to raise the value of agricultural production rather than relying mainly on raw commodity sales.

Andhra Pradesh accounts for 15.6 per cent of the country’s fruit production and leads nationally in crops including papaya, cocoa, tomato, coconut and oil palm. It is also a major producer and exporter of chillies, bananas, seafood and aquaculture products.

The state allocated ₹1,223.86 crore to horticulture and allied departments in its 2026–27 budget. Its plans include expanding commercial horticulture, supporting micro-irrigation and developing West Godavari as a cocoa hub. Nearly 120,000 tonnes of bananas are exported annually, highlighting the potential for additional sorting, packaging and processing capacity.

For the UAE, the partnership supports a strategy of securing diversified and commercially sustainable food supply channels. The country has built an ecosystem covering farming, manufacturing, imports, distribution, food technology and logistics, but remains dependent on overseas supply for much of its consumption.

The UAE Food Cluster, launched two years ago, connects more than 2,000 businesses across production, processing, distribution and innovation. The wider national food sector includes more than 10,000 companies and over 38,000 farms, alongside tens of thousands of registered food-related trademarks.

Al Marri and Naidu also discussed cooperation in tourism, hospitality, infrastructure and knowledge-based industries. Emirati companies are assessing coastal tourism projects and logistics opportunities, indicating that the food initiative could form part of a wider investment relationship with the state.