Sources said the UAE had begun funneling a long-promised investment of $2 billion into Indian food parks, starting with Gujarat, after the countries allayed concerns over restrictions imposed by the Essential Commodities Act. The investment comes as part of a four-nation I2U2 (India-Israel-UAE-US) initiative to develop integrated food parks across India to improve food security in the Middle East and South Asia.Sustainable future “India has agreed to waive ECA restrictions on a certain amount (covered by the Act) of goods that investors propose to upgrade and export from the parks. The UAE will specify the amounts at a later stage of development, a source close to the matter said BusinesslinePark KandlaProbably the first food park will be established in the countryside near Kandla, where investors would have access to contract farming with the locals.
“The UAE is negotiating with the state government for various permits and the work is expected to start soon. Investments will be made in installments,” the source added. Hands-on attendance included Prime Minister Narendra Modi, US President Joe Biden, Israeli Prime Minister (former) Yair Lapid and UAE President Sheikh Mohamed bin Zayed Al Nahyan According to a joint statement signed by the leaders at the summit, these food parks would include state-of-the-art climate technologies for reduce food waste and spoilage and conserve fresh water. and use renewable energy sources.
Listed crops
The UAE was concerned about the ECA because three of the listed crops grown in food parks – onion, rice and banana – are covered by the law. As the European Court of Auditors allows the government to impose stock restrictions in the event of a shortage, this could affect the business prospects of food parks. “Now that the center has agreed that ECA will not seek processed goods from food parks up to a certain amount required by the UAE, the problem has been resolved”.
