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UAE invests $2 billion in hi-tech Indian crop-growing 'food parks' to ease shortages | |
| Staff Writer |
The United Arab Emirates has pledged $2 billion to develop a series of "food parks" in India with a view to enhancing food security in South Asia and the Middle East, a joint statement said on Thursday.
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Speaking in Jerusalem at a virtual summit with UAE, U.S. President Joe Biden said the investment could "increase India's food yields in the region three-fold in just five years".
The parks would bring farmers, processors and retailers together using advanced climate technology to minimize waste, conserve water and maximize crop yields, focusing on crops including potatoes, rice and onions.
They also advance renewable energy projects in India, including wind and solar energy plants.
The projects would be supported by both Israeli and U.S. private sectors, Biden said at the summit on food security and clean energy amid fears of global food shortages caused by the war in Ukraine.
Russia and Ukraine are the world's third and fourth largest grain exporters, respectively, while Russia is also a key fuel and fertiliser exporter.
The war has disrupted exports, pushed world food prices to record levels and triggered protests in developing countries already contending with elevated food prices due to COVID-related supply chain disruptions.
Economic fallout from the pandemic, climate change, food insecurity and volatile energy markets, Biden said, had been "made worse by Russia's brutal and unprovoked attack" on Ukraine.
"All these issues require cooperation and coordination, and none of us can mount a comprehensive response on our own," Biden said.
U.N. agencies warned this month that the war in Ukraine and climate change could push starvation and mass migration to unprecedented levels.
Indian states of Gujarat and Madhya Pradesh are exploring setting up these parks, which would initially cultivate bananas, potatoes, rice, onions and spices.
Gulf Arab states import as much as 80-90% of their food and while their oil wealth renders them less vulnerable to rising global food prices than poorer countries in the region, disruptions threaten their supply chains.
India, is the world's third-biggest oil importer and consumer. Wealthy Gulf states have invested heavily in agritech overseas, which is also a fast-growing sector in Israel.
Crop yields are considerably low in India and despite being a major farm goods producer, lacks regular irrigation for around half its farmland. Venture capital firms for now are investing money into local agritech start-ups.