Rice sector fears over rainy season rice hike

By Ly Menhour

The Mekong Times

As rainy season draws closer, the Cambodian Rice Millers’ Association (CRMA), the private sector and the Rural Development Bank of Cambodia (RDBC) fear there maybe an increase in the price of rice and paddy rice. The rice sector received US$10 million from the government in March to buy up rice and paddy to prevent price rises. RDBC General Director Son Kunthor said that around 150,000 tons of rice has been bought with the US$10 million government funding. “The stockpile of rice … is to prevent the price of rice from rising and to stabilize the Cambodian rice market, even though prices in the global rice market are rising,” he said. “As has been predicted, the world [will be] able to produce more rice, but the price of rice … is not lowering.”To cope with possible rice shortages during the rainy season, around 10,000 tons of rice has been earmarked to supply the market in the near future. “This is to prevent the price of local rice from rising and to prevent traders from taking advantage when farmers are transplanting rice in the upcoming rainy season,” said Son Kunthor.He said Cambodia will not suffer food shortages as it has already stockpiled a lot of rice. He claimed that the price of rice is lower here than in neighboring countries. The price of Cambodian rice is currently stable.“Top grade rice, Phka Males, is selling for US$900 a ton. Lower quality rice, Banla Phdov, goes for US$560 a ton. These prices became stable in mid-March,” Keo Oeur, a Phnom Penh rice seller, said Monday.In response to the substantial world rice price hike in mid-March, the government imposed a two month ban on rice exports and gave the private sector and CRMA the US$10 million to buy rice from farmers, as well as supplying subsidized rice to markets.