Cambodia/Indonesia: Cambodia aims to export one million tonnes of rice to Indonesia

28.10.2016

Cambodia is about to sign very soon an agreement with Indonesia which will pave the way for the export of one million tonnes of rice under a new quota system, The Phnom Penh Post Online reported on Tuesday.

Commerce Ministry spokesman Soeng Sophary said a memorandum of understanding between the two countries has been finalized and is ready to be signed soon.

She said that the new quota system presented a valuable opportunity for the rice sector in Cambodia as it will open a new market for the country's rice exporters and will provide the private sector with fair market value.

According to the Commerce Ministry's estimates, about three million tonnes of paddy were expected to be produced this year, depending on how the grains are harvested and stored.

But Han Vanhan, undersecretary of agriculture, cautioned that even if the MOU was sgned, Cambodia will still have to compete with the other rice exports such as Thailand and Vietnam.

The intention to export one million tonnes of rice has always been part of the government's strategy, but whether it will be realized or not depends on whether we can compete in the market or not, said Vanhan.

He pointed out that the main obstacles preventing Cambodia's ambition to export one million tonnes of rice are millers' capital shortage, inefficient logistical capacity, insufficient storage capacity and the high cost of electricity.

Cambodia's Rice Federation vice president Hun Lak said the ministry's plan was overly ambitious and Cambodia was years away from being able to export one million tonnes.


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