Date: 21/04/2023

Relevance: GS-3: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Phrases: Global Supply Chain, India-UAE Food Security Partnership, Imports, I2U2 Summit, CEPA, Agriota, Diversified Agri-Produce, Public Distribution System, POSHAN Abhiyaan, G-20, Mega Food Parks.

Context:

• The plan of the United Arab Emirates to strengthen food security in the Global South will be ensured by multiple points of convergence, making India an essential partner in this endeavor.

Key Highlights:

• The United Arab Emirates (UAE) has been a key importer of food from global markets to meet its food needs.
  • However, in recent years, the UAE has been focusing on improving food access and readiness to handle supply chain crises.
• India, as the world's second-largest food producer, has emerged as an important partner for the UAE to strengthen its food security.
  • The India-UAE food security partnership has multiple points of convergence that can benefit both countries.

India's Capabilities in Agriculture and Food Production:

• India has emerged as a global agri-export powerhouse by leveraging its vast tracts of arable land, favorable climate, and a large and growing food production and processing sector.
  • India has been supplying diversified agri-produce to global markets, and it has also acted as a humanitarian provider of food to developing countries.
• India's massive budgetary outlays towards setting up food parks with modern supply chain management spanning farm gate to retail outlets reflect the country's strong intent to benefit from bilateral trade agreements and make the most of its agri-capabilities in the global food marketplace.
• India runs the world's largest food subsidy program, the Public Distribution System, providing nearly 800 million citizens with subsidized grains.
  • It has also launched the Prime Minister's Overarching Scheme for Holistic Nutrition (POSHAN) Abhiyaan, the world's largest nutrition program for children and women.
• As a part of its G-20 presidency, India is promoting the consumption and farming of millets that are nutritious, drought-resistant, and sustainable crops.
  • India's G-20 presidency seeks to address the three Cs of "Covid, Conflict, and Climate," issues that can undermine food security in India and across the globe.

UAE's Contribution to the Partnership:

• The UAE's contribution to the India-UAE food security partnership lies in its strategic location between Asia and Europe.
  • The UAE can serve as India's food export gateway to West Asia and the Africa region and beyond.
• During the I2U2 summit, the UAE committed $2 billion in investment towards constructing food parks in India, while the signing of a food security corridor on the Comprehensive Economic Partnership Agreement (CEPA)'s sidelines has taken forward India's envisioned presence on the global food value chain, beyond the UAE.
• The corridor could potentially commence a route for foods made and processed in India, beginning their outbound journey on the Indian coast of the Arabian Sea, passing through the UAE, and towards major international markets.
• The corridor stands to emerge as a world-class template of successful agri-trade for India, while also unlocking greater productivity, efficiency, and growth for its millions of workers and employees.
• The Dubai Multi Commodities Centre launched Agriota, an agri-trading and commodity platform to link Indian farmers to food companies in the UAE.
  • A consortium of UAE-based entities is investing up to $7 billion in mega food parks, contract farming, and the sourcing of agro-commodities in India.

Benefits of the Partnership

• The India-UAE food security partnership has several benefits for both countries.
  • The UAE's private sector projects spanning its agricultural and food processing sector will generate non-farm agri-jobs while enabling farmers to discover better prices for their products.
• With the UAE's infrastructural capabilities, India's agricultural products will have more resilient and diversified pathways to the global marketplace.
• The partnership could also contribute to the global food security dialogue by showcasing viable strategies and frameworks that can forge the basis of food security in the Global South.

Conclusion

• The UAE and India have had a long-standing relationship, and their partnership in the food security sector has benefited them in several ways.
  • India's strong track record in the food sector offers valuable expertise that can boost the UAE's food security drive.
• The commitments made by the UAE and the DMCC to food parks, agro-commodities, and contract farming reflect the nation's intention to collaborate more with India in the future.
  • Indeed, both nations could enhance their food systems' inclusivity, sustainability, and productivity by partnering for food security.

Source: The Hindu

Mains Question:

Q. "How can India leverage its strengths in the food sector to not only contribute to the UAE's food security drive but also advance its own position in the global food marketplace?" (150 words).