India-based agribusiness firm Usher Agro has signed a joint venture agreement for the setting up of a rice and pulses storage, processing and packaging facility at Sohar Port and Freezone, at an estimated cost of $40 million, a report said.

Usher Agro, through its 100 per cent subsidiary Usher Worldwide FZE and Prime Trading, signed the agreement with Al Mada Project Management Company (AMPMC) and Sohar Food Cluster Company, added the Oman Daily Observer report.

The initial facility will feature a polishing, grading, blending and packaging unit for 100,000 tonnes per annum (TPA) of premium long grain rice including basmati rice and a state-of-the-art milling unit for 100,000 TPA of pulses, said the report.

Alpen Capital India Private Ltd acted as the sole financial advisor to Usher Agro on this project.

Additionally, the facility will also incorporate a 25,000 TPA capacity rice fortification plant based on patented technology provided by Path, a non-profit organisation supported by the Bill and Melinda Gates Foundation.

The rice will be fortified with vitamins and minerals to address nutrition requirements and is expected to be sold as a premium product and also supplied to the government for welfare activities in the wider Middle East and North Africa (Mena) region.

The basmati rice products of the facility will be distributed within Mena countries whereas pulses products from the facility will be distributed in India and Mena countries.

The parties expect to commence the operations of the facility by end of fiscal year 2016, added the report.