Ccambodian rice exporter TTY Corporation had received permission from China to ship 200,000 tonnes of milled rice a year to that country, a company official said yesterday.
TTY in August signed a deal with the Guangzhou branch of China Grain Reserves Corp (Sinograin) for 200,000 tonnes of milled rice a year, according to TTY deputy general director Heng Sarath.
The company had been awaiting approval from the China Certification & Inspection Group, which performs quality checks on goods entering China, he said yesterday. TTY has since passed inspection, and Heng Sarath said he now expects shipments to commence after Chinese New Year in late January.
“We will export 1,500 tonnes in the first phase of deliver,” he said, adding that shipments of fragrant Malis rice should continue on a monthly basis.
Heng Sarath said he was unable to offer financial details of the agreement because the price per tonne would depend on the market rate for rice when the shipment left for China in late January. Cambodia shipped about 149,000 tonnes of milled rice through November, totalling US$87.5 million, according to the Ministry of Commerce. That dollar figure represented a 196 per cent increase over the same period in 2010.
Phou Puy, president of the Federation of Cambodian Rice Millers Associations, and who also serves as chairman of rice exporter Baitang Kampuchea Co, praised the deal as important for Cambodia.
“China is big market, and it would be very good for us if we had access to it,” he said.
The wait for inspection approval by Chinese authorities has been an impediment for the Kingdom’s rice exporters, according to Phou Puy. Baitang Kampuchea had signed a memorandum of understanding with a Chinese company for 10,000 tonnes of rice, but Baitang Kampuchea is still waiting for that approval, he said.
“We’ve encountered hurdles stemming from negotiations between the relevant institutions about quality inspection.”