Logo of Phnom Penh Post newspaper Phnom Penh Post - RDB projects rising rice loan demand for harvest

RDB projects rising rice loan demand for harvest

Content image - Phnom Penh Post
A rice farmer works in Kandal province during the 2016 harvest season. Heng Chivoan

RDB projects rising rice loan demand for harvest

State-owned Rural Development Bank (RDB) projected that the demand for loans in the rice sector will increase this season, said CEO Kao Thach on Monday.

He said while more rice facilities are ready for operation this year, there will be more demand for loans.

RDB disbursed $35 million to approximately 40 rice millers and exporters last year, out of the $50 million earmarked for loans.

The government’s decision to disburse loans directly through RDB sidestepped the Cambodian Rice Federation (CRF), the industry body that has lobbied the government since March 2016 to provide emergency funds for its members.

In September 2016, the government transferred its share of a $27 million package to RDB so the bank could disburse loans to millers, allowing them to purchase paddy from farmers.

In August, another $23 million was injected by the government, bringing the total to $50 million aimed at propping up the struggling industry.

Thach said a new loan will be issued for the rice industry at the end of July and he expects it to be in high demand.

“The demand for capital in the coming season would see a huge increase as rice facilities are ready for storage and milling,” he said, adding that the total storage capacity this season would be around 450,000 tonnes on the strength of four facilities launched earlier this month.

“Even if the loan package comes up short, we will request the government to add more money,” Thach said.

AMRU Rice Co Ltd CEO Song Saran said while rice cultivation has kept growing along with buyer demand, the industry needed to supply 350,000 tonnes to the international market in the coming season.

“Now that we are less concerned about storage and milling, we need at least $50 million in hand for the rice industry to supply the needs of the international market,” he said.

MOST VIEWED

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the