Economy: Royal Government allocates $150M to purchase rice from farmers

Cambodian Prime Minister Hun Manet announced that the Royal Government has allocated USD 150 million to ensure the purchase of rice from farmers.

The PM shared the news on Monday at the inauguration of the newly established village “Bun Rany Sen Chey Damnak Troyeung” in Pursat province.

Samdech Thipadei Hun Manet stated:

“We have launched a credit guarantee campaign for rice exports, initially set at USD 30 million and increased to USD 150 million last week, to ensure rice mills can access working capital through private bank loans.”

On the occasion, Samdech Thipadei underlined that the decision to increase the budget package to USD 150 million is a concrete measure that the Royal Government has taken, is taking, and will continue to take to ensure rice purchases from farmers.

At the same time, the PM also called on all banks and private financial institutions to provide loans to the agricultural sector at reasonable interest rates to enable mills to collect rice from farmers.

To date, the Royal Government, through the Agricultural and Rural Development Bank (ARDB), has allocated over USD 200 million to support the rice sector and stabilise rice price. The funds were released on 20 September 2016; 16 November 2016; 24 July 2017; 25 September 2020; and March 2024.

Kao Thach, ARDB Director General, underscored that the Royal Government has prioritised the rice sector due to its critical role in food security and trade, with ARDB overseeing the fund disbursements.