Rice export growth stagnant in 2016

According to data from the Ministry of Agriculture, Cambodia’s rice exports totaled 542,144 tonnes last year, up just 0.7% YoY. In 2015, rice exports grew 39% YoY. Hean Vanhann, undersecretary of state at the ministry, said the slowdown was due to both internal and external factors, noting that the international price of rice was declining, making it increasingly difficult for Cambodian rice to compete in global markets. Meanwhile, the domestic rice industry does not have sufficient milling or storage capacity or enough capital to support year-round, round-the-clock exports. Hun Lak, vice president of the Cambodian Rice Federation, explained that local exporters had to compete with rival rice-producing countries that were flooding the market with their product, while local farmers struggled against low paddy prices exacerbated by the sector’s shortage of capital and storage capacity. However, he projected that rice exports would grow this year following the signing of export agreements with China and Vietnam. (Source: Phnom Penh Post)