UAE companies to invest $7b in food sector as part of UAE-India food project
UAE companies are expected to invest up to US $7 billion in India’s food sector in the next three years as part of the UAE-India food corridor project, according to a local newspaper.
The investments are aimed at securing the UAE’s food security, Piyush Goyal, Indian Minister of Railways and Minister of Commerce and Industry told Emirates News Agency, WAM.
Dubai-based Emaar Group is coordinating the investments. They plan to invest up to US $5 billion in mega food parks and similar facilities in various Indian cities, and up to US $2 billion in contract farming, sourcing of agro commodities and related infrastructure.
“Emaar Group is coordinating with the Government of India in respect of the investment relating to food security in the UAE. The investment will be made by other UAE entities, the details of which will be declared at a later stage,” said Emaar in a statement issued to WAM.
It was reported earlier that the idea of the joint food corridor for the UAE’s food security was inspired by India’s strategic petroleum reserve in Padur in south India, in partnership with Abu Dhabi National Oil Company, ADNOC. Likewise, the UAE could have a food reserve in India.
“They [UAE entities] have expressed their interest to invest up to $5 billion in mega food parks, logistics and warehouse hubs, fruits and vegetable hubs in various Indian cities, which would create 200,000 jobs across India,” said Piyush Goyal, Indian Minister of Railways and Minister of Commerce and Industry.
The proposed projects are in various cities, such as mega food parks in Kutch in western state of Gujarat and Aurangabad in western state of Maharashtra, Goyal added.
A food park in Pawarkheda in central state of Madhya Pradesh, logistics and warehouse hub in Itarsi in Madhya Pradesh, fruits and vegetables hub in Nashik and warehousing hub in Bhiwandi in Maharashtra are other projects, he explained.
Reports in 2018 said that India had suggested to the UAE leadership it could be a partner in the UAE’s food security.
Although India grows enough food for its 1.3 billion people, 30 per cent of that food is wasted for lack of appropriate infrastructure for storage, processing and transportation, which could be built by the UAE’s investments.
The UAE can buy the food produced by the project at a cheaper price while Indian farmers will get a comparatively better price for their crops.