New Delhi, October 17: Aiming to taut the food security, UAE entities are expected to invest up to USD 7 billion in India's food sector in the next three years as part of the UAE-India food corridor project.
"These entities, coordinated by Dubai-based Emaar Group, 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", Commerce Minister Piyush Goyal said on Thursday while addressing a forum in the national capital.
It was noted 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.
"The UAE entities have expressed their interest to invest up to USD 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 the minister who was in the UAE earlier this week on an official visit.
While the proposed projects are in various cities, such as mega food parks in Kutch in the western state of Gujarat and Aurangabad in western state of Maharashtra, a food park in Madhya Pradesh's Pawarkheda, logistics and warehouse hub in Itarsi, fruits and vegetable hub in Nashik and warehousing hub in Maharashtra's Bhiwandi are other projects.
The UAE entities plan to make an indicative investment up to USD2 billion in contract farming, sourcing of several agro commodities, setting up of food parks and other related infrastructure for food processing. "They are considering western Indian states of Gujarat and Maharashtra for the proposed projects and the possibility of eight food parks is being currently evaluated", Goyal revealed.
Although India grows enough food for its 1.3 billion people, 30 percent 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.