PhnomPenhPost-Jan 20, 2025
The Royal Government has recently implemented two specific and direct and indirect measures to assist farmers, particularly to stabilize the price of rice during the upcoming Chinese and Vietnamese New Year celebrations, a period when demand may decline. The measures were introduced after the price of OM rice dropped to as low as 800 riel per kilogram. The price of Khmer fragrant rice remains similar to last year, ranging from 1,200 to 1,300 riel. During a January 20 inauguration ceremony for development achievements in the Bun Rany Senchey Damnak Trayeng village, in Pursat province’s Phnom Kravanh district, Prime Minister Hun Manet explained that direct measures were implemented from October to November 2024 and will be repeated from April and May 2025 with the government allocating $40 million to rice mills as working capital to purchase agricultural products from farmers. Additionally, $30 million has been allocated from January to March, especially during the Chinese and Vietnamese New Year in January, when procurement may slow down. He added that there is also a credit guarantee mechanism for rice exports, rising from $30 million to $150 million, which was agreed upon last week after discussions with the Rice Federation. Rice mills require financial support from the Rural Development and Agricultural Development Bank (ARDB). The $150 million mechanism is for general agricultural products, with $40 million already utilized, and an additional $30 million allocated.
“We added $150 million. What is the purpose of this $150 million? It is to ensure that rice mills can access loans from private banks to use as working capital to purchase rice from farmers,” he said.Beyond direct financial interventions, the government is also considering waiving land tax for agricultural land, unlike most countries that do not exempt such taxes. Furthermore, the government is contemplating waiving taxes on the import of agricultural equipment, fertilizer and animal feed. Read more at:
