Andhra Pradesh, UAE Discuss Food Cluster and Export Value Chain to Boost Agri Trade

Amaravati, July 2026 : Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday held talks with United Arab Emirates (UAE) Minister of Economy and Tourism Abdulla Bin Touq Al Marri to advance plans for establishing a food processing cluster in the state and strengthening bilateral cooperation in agriculture, logistics, and infrastructure.

The UAE delegation met the Chief Minister and senior state government officials at the Andhra Pradesh Secretariat, where discussions focused on creating a robust value chain for exporting horticultural products such as mangoes, bananas, and cocoa to international markets.

According to an official statement, the proposed food cluster is aimed at enhancing food processing capabilities, improving export infrastructure, and enabling Andhra Pradesh’s agricultural produce to access global markets more efficiently. The initiative is expected to add value to the state’s horticulture sector while creating new opportunities for farmers, food processors, and exporters.

The proposal traces its origins to discussions held during the World Economic Forum (WEF) annual meeting in Davos earlier this year, where the Andhra Pradesh government and UAE representatives agreed in principle to collaborate on the establishment of a food cluster in the state.

During his visit to Davos, Chief Minister Chandrababu Naidu had held detailed discussions with Abdulla Bin Touq Al Marri, following which the UAE expressed its willingness to partner with Andhra Pradesh in developing a comprehensive food processing ecosystem. The partnership is expected to strengthen supply chains and facilitate greater exports of processed agricultural products to the Middle East and other international markets.

The state government said both sides have agreed to establish a value chain in the food processing sector, with the Andhra Pradesh government and the UAE working together to implement the project.

Industries Minister T.G. Bharat, along with senior officials from the Food Processing, Industries, and Andhra Pradesh Economic Development Board (EDB), also participated in Tuesday’s meeting.

Apart from the food cluster, both sides reviewed progress on several other collaborative initiatives discussed during the Davos summit. These include proposals for cooperation in multimodal logistics, ports, renewable energy, retail, and infrastructure development aimed at deepening economic ties between Andhra Pradesh and the UAE.

Among the key proposals is the establishment of a multimodal logistics park in Andhra Pradesh by the UAE-based Sharaf Group, which is expected to strengthen the state’s logistics network and improve connectivity for exports.

The UAE Minister had earlier also assured support for facilitating the establishment of around 40 UAE-based institutions and businesses in Andhra Pradesh, reflecting growing investor interest in the state.

Chief Minister Chandrababu Naidu expressed confidence that the strategic partnership with the UAE would accelerate industrial growth, expand employment opportunities, and significantly boost Andhra Pradesh’s exports. He said closer cooperation with the Gulf nation would play a key role in positioning the state as a major hub for food processing, logistics, and international trade.

Team Maverick.