India and UAE sign MoU for food processing cluster

On 21 July 2026, the Andhra Pradesh Economic Development Board signed a Memorandum of Understanding with the UAE Food Cluster to establish a food processing cluster in Andhra Pradesh. The agreement was signed in Amaravati in the presence of Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri.

Food Processing Cluster

A food processing cluster is an industrial concentration of units linked to processing, packaging, storage, and export of agricultural produce. In this case, the proposed cluster is linked with horticulture, aquaculture, logistics, and cold-chain infrastructure in Andhra Pradesh.

Investment and Export Base

Dubai-based Floor Masters International announced an initial investment of ₹100 crore on 21 July 2026 for a food processing unit at Gangadhara Nellore in Chittoor district. The unit is planned as an export base for nearly 25 countries, with food products manufactured for overseas markets.

Product Categories and Supply Chain

The collaboration covers an integrated value chain for horticultural products such as mangoes, bananas, and cocoa. It also includes trade in seafood, dairy, poultry, pulses, and other products through cold-chain facilities and shipping links.

Important Facts for Exams

• The Andhra Pradesh Economic Development Board is the state agency associated with investment promotion and industrial coordination in Andhra Pradesh.
• The World Economic Forum is an international organisation that hosts the annual meeting in Davos, Switzerland.
• Krishnapatnam Port and Kakinada Port are important maritime gateways on the eastern coast of India.
• Cold-chain infrastructure refers to temperature-controlled storage and transport used for perishable goods such as fruits, seafood, and dairy products.

Andhra Pradesh in Agri-Exports

Andhra Pradesh has a large base in horticulture and aquaculture, which supports food processing and export-oriented industries. Mangoes, bananas, cocoa, seafood, and dairy products are among the commodities linked with the proposed cluster.