The India-Middle East Food Corridor: A New West Asia Value Chain – Part Four
The India-Middle East food corridor is an initiative that promises to transform and revolutionize the diplomatic, trade, and economic relations between India and the Middle East.
In this episode, we will take a look at the logistics and distribution engine of the India-Middle East Food Corridor.
In 2019, the UAE engaged India in a $7 billion project to develop an India-UAE food Corridor that would enable food security for the Gulf Nation and countries in the Middle East. The investment in the Food Corridor was done well before the 2021 COVID-induced food shortages and well before Russia’s invasion of Ukraine, which created food supply shocks all over the world.
The Dubai Chamber of Commerce, as a part of the 2019 initiative, began creating logistics and infrastructure for the smooth transaction of agricultural produce. Spearheaded by DP World, a Dubai-based global supply chain innovator, and leader began providing integrated supply chain solutions for the storage and transportation of agricultural products.
NIIF, National Investment, and Infrastructure Fund, the sovereign wealth fund of India, set in motion the investments.
An article published on the Middle Institute mentions the following:
“…India’s National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund, set the foundation for these investments when they formed a $3 billion ports and logistics investment platform called Hindustan Infralog Private Limited (HIPL). DP World holds a 65% share and NIIF has a 35% share in HIPL. To create an integrated transportation infrastructure to support integration across the Arabian Sea, HIPL’s first investment was to acquire a $400 million controlling stake in Continental Warehousing Corporation, a leading multi-modal logistics company with a pan-India presence.”
The food Corridor will form a connection directly between India’s farms to UAE ports, with the prospect of the increasing food trade three times what it is at the present moment.
The Middle East Institute article reads:
“…The Dubai Multi-Commodities Centre created an agriculture trading platform called Agriota to link Indian farmers with food companies in the UAE. The UAE will be able to purchase food grains, fruits and vegetables directly from farmers in India to be delivered to the Emirati-financed, mega-park processing facilities being constructed in the country. The UAE’s Ministry of Economy estimates that 2 million Indian farmers will benefit from the food corridor, which will create an estimated additional 200,000 jobs.”
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