After meeting Commerce Minister Anand Sharma, Chief Minister Oommen Chandy said it was a long pending demand of the state and it was approved by the Centre.
The park would be set up with the support of the state government, he said.
The state government has to identify 10 acres of land in the district for the project.
Chandy said that the park, which will focus on pepper specifically, will facilitate value addition at farm level to enable farmers get better prices for their produce.