Andhra Pradesh-UAE pact: Food cluster to boost exports, ₹100 crore unit in Chittoor

The Andhra Pradesh government has signed a Memorandum of Understanding (MoU) with the United Arab Emirates (UAE) to establish a UAE Food Cluster in the state, converting an investment commitment made during the World Economic Forum in Davos earlier this year into a concrete initiative.

The agreement was signed between the Andhra Pradesh Economic Development Board (APEDB) and the UAE Food Cluster in the presence of Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri at the State Secretariat in Amaravati on Tuesday. The partnership aims to promote investments, trade and exports by creating an integrated food processing value chain.

Under the framework, UAE-based companies will be encouraged to invest in food processing, export-oriented manufacturing and value-added agricultural products, with a focus on horticultural produce such as mangoes, bananas and cocoa. The initiative also seeks to strengthen export infrastructure and improve global market access for products from Andhra Pradesh.

Marking the first investment under the initiative, Dubai-based Floor Masters International has announced an investment of ₹100 crore to establish a food processing unit at Gangadhara Nellore in Chittoor district. The facility will manufacture food products for export, with the company planning to use Andhra Pradesh as its export base for nearly 25 countries.

Chief Minister Naidu said the UAE had converted its Davos commitment into reality within six months, and expressed confidence that the Food Cluster would position Andhra Pradesh as a major hub for food processing and exports. He highlighted the state's strengths in horticulture, aquaculture and logistics, noting that agriculture and horticulture contribute about 30% of the state's Gross State Domestic Product.

Naidu also announced plans to develop the Rayalaseema region into a horticulture hub with ₹1 lakh crore in investments and to establish the Indian School of Agriculture in partnership with Reliance Industries.

UAE Minister Al Marri described Andhra Pradesh as an attractive investment destination with abundant agricultural resources, praising the government's investor-friendly policies and quick approvals. He stated that the UAE would invest in food processing, cold-chain infrastructure and related facilities while promoting exports of seafood, dairy, poultry, pulses and other products to global markets. Improved shipping links through Krishnapatnam and Kakinada ports would further strengthen trade between Andhra Pradesh and the UAE, he added.

Senior officials from both sides, including Andhra Pradesh Industries Minister T.G. Bharat and Chief Secretary G. Sai Prasad, were present at the signing.