Government Urges Farmers to Stop Selling Rice at Low Prices

By Soy Sophea

The Royal Government of Cambodia has urged farmers not to hasten to sell their rice abroad because they are just about to harvest their produce at a time of plentiful supply and generally low rice prices.

Chan Sarun, Minister of Agriculture, Forestry and Fisheries (MoAFF), said that he was aware Cambodian farmers were anxious to export their rice to Vietnam and Thailand. He advised against this as it was impossible as yet to predict the market price so soon after the harvest and it was better to store the grains and wait for more concrete information as to prices.

Chan Sarun, speaking November 26 at a meeting held at the Ministry to assess the forthcoming harvest, urged provincial agricultural departments to collect information about Cambodian farmers and their rice sales to neighboring countries.

“We supply rice to cater for both domestic and international demand. But we will not sell to international buyers at a price lower than the market value,” he told the Cambodia Weekly during a personal interview on November 25. “Our plan is to increase rice production year after year and this will be all the easier when the commodity is sold at a price that reflects its true market value,” he said.

The Minister continued with a promise that current low prices are a result of a glut of rice following this season’s harvest and would not remain in place forever. He suggested that rice merchants should wait for higher prices to arrive early next year.

Despite the drought of July to September, Cambodian farmers can still produce approximately 6.553.171 tons, an average of 2.52 tons of produce per hectare. A dry 2008 resulted in a 0.62 percent decrease in production, compared to figures for 2007, when 6.727.127 tons of the staple were produced, according to Chan Sarun.

The Minister continued that the 6.55 million tons produced failed to meet the Agriculture Ministry’s goal of 7 million tons for the 2008 growing season. He added that the Ministry will review processes in order to increase production and meet the 7 million ton goal next year.

Oum Narith, Deputy Director of Planning and Statistics in the Ministry of Agriculture, Forestry and Fisheries, said that on average one person consumes 143 kilograms of rice per year. With a population approaching 14 million, total national consumption is 1,970,270 tons of rice.

Dr. Yang Saing Koma, President of the Cambodian Center for Study and Developmentin Agriculture (CEDAC), echoed the Minister’s comment by saying that this year’s harvest had decreased by approximately 0.62 percent on figures for 2007. He too agreed with measures taken to try and stem the flow of rice exports to neighboring countries.

Saing Koma said that a high yield depended on a sufficient supply of water. He conceded that this year’s decreased levels of rainfall had been responsible for the 2.52 ton per hectare yield; but he found comfort in the fact that these figures were not as bad as those for the harvest season in 2004, when only 1.98 tons per hectare were produced.

He pointed out that although there are many improved irrigation systems, there is still much to do in modifying the entire network of water channels. He further suggested that the government should take action to halt rice exports to Vietnam or Thailand so soon after the harvest season. He said it was better to wait for prices to stabilize once the rice glut had worked its way out of the international market.

According Ministry statistics released October 30, 2008, Banteay Mean Chey province produced 214,340 tons of rainy season rice, Battambong 245,127 tons, Kampong Cham 166,285 tons, Kampong Chhnang 105,222 tons, Kampong Speu 105,190 tons. The least productive province was Pailin with 2,750 tons.

Recently, Cambodian Prime Minister Hun Sen noted his pleasure when the yield reached about 6 million tons of rice. Once this mark is passed, roughly 2 million tons of rice becomes available for export.