Logo of Phnom Penh Post newspaper Phnom Penh Post - Milled-rice exports soar January-April as EU tax ends

Milled-rice exports soar January-April as EU tax ends

Content image - Phnom Penh Post
Milled rice exports amounted to 221,138 tonnes – up 14.88 per cent year-on-year – worth $139.57 million, while paddy exports totalled 1,648,474 tonnes valued at $376.64 million. Heng Chivoan

Milled-rice exports soar January-April as EU tax ends

Milled-rice exports to Europe amounted to 68,555 tonnes in January to April this year, compared to the 42,850 tonnes sold to just the EU in the same period of 2021, following the end of the bloc’s three-year safeguard measures to protect European rice farmers and the local market, according to the head of the Kingdom’s apex industry body.

The total value of the Cambodian rice exports during the period amounted to $51.02 million despite a nearly 10-fold increase in ocean freight costs, said Cambodia Rice Federation (CRF) president Song Saran, who described the export growth as “remarkable”.

The cost per 20-foot container is $7,000 to $8,000 currently compared to $800 to $1,000 pre-Covid-19, but there is no shortage of containers.

He said it did not matter that the cost of ocean freight was higher, as the momentum of milled rice exports to Europe has increased, offsetting shipping costs.

“Milled rice exports in 2021 declined sharply because the transportation system to Europe was almost cut off due to the pandemic.

“As the situation tapered, Cambodia rushed to export to meet the demand in Europe and take advantage of the tax rollback [beginning January this year],” Saran told The Post on May 9.

The safeguard measures, imposed in 2019, required Cambodian exporters to pay an import duty of €175 ($184) per tonne in the first year, €150 per tonne in 2020, and €125 per tonne in 2021.

The European Commission, the EU’s executive arm, introduced tariffs on Indica rice exports from Cambodia and Myanmar after an investigation found that the imports were allegedly causing economic damage to EU producers.

CRF’s Saran said the lifting of the requirement this year led to the reinstatement of benefits on the Cambodian rice sector and to regain its competitive edge against other rice exporting countries.

Every year, Cambodia, which enjoys preferential treatment under the EU’s Everything But Arms scheme, exports 100,000 to 200,000 tonnes of rice to Europe, he said. “The European market demands 180,000 to 200,000 tonnes of rice per year. We don’t have a problem exporting because we have the capacity to produce and supply.”

Meanwhile, Ministry of Commerce spokesman Penn Sovicheat noted the “good signs” following the rise in exports to Europe, a market he admitted was not among those such as China that were expected to record such solid gains.

“It is due to the buying momentum of European customers, a predominant part of whom have turned to consuming Cambodian milled rice,” he told The Post.

MOST VIEWED

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of