A food park is a designated area where various activities in the food supply chain—such as production, processing, and distribution—are centralized. These parks host multiple food processing units and related businesses, offering shared infrastructure and services that enhance efficiency while reducing operational costs.
The primary purpose behind the UAE's investment in Indian food parks is to bolster food security in both the Middle East and South Asia. By developing advanced, integrated food parks in India, the initiative aims to improve the efficiency and sustainability of food production and processing in the region.
This investment is part of the I2U2 (India-Israel-UAE-USA) initiative, which promotes cooperation among these four countries to strengthen economic and technological ties, focusing on food security and energy.
The inaugural food park under this initiative is expected to be established near Kandla in Gujarat, India. This strategic location was chosen for its proximity to port facilities, which will facilitate the export of processed goods.
Before finalizing the investment, the UAE raised concerns regarding restrictions under India's Essential Commodities Act (ECA), particularly concerning crops like onions, rice, and bananas. To address these concerns, India has agreed to waive certain restrictions for commodities that will be processed and exported from these food parks.
The food parks will utilize state-of-the-art climate-smart technologies. These technologies include systems designed to minimize food waste, conserve water through advanced irrigation and water recycling techniques, and harness renewable energy sources to power facility operations.
This investment is poised to significantly enhance India's agricultural and food processing sectors by introducing advanced technologies and boosting production capacity. It will generate employment opportunities, improve food processing capabilities, and elevate India's export potential. Furthermore, it will strengthen India's strategic relationships with the UAE and other I2U2 member countries.
The investment holds considerable potential to improve food security in the Middle East and South Asia, areas facing challenges from climate change and population growth. By leveraging international cooperation and technological innovation, the food parks are anticipated to contribute to a more sustainable and resilient food system in the region.
These insights underscore the scope and impact of the UAE's investment in developing climate-smart food parks in India, highlighting its strategic importance in enhancing regional food security and fostering economic collaboration within the I2U2 framework.
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