Logo of Phnom Penh Post newspaper Phnom Penh Post - RDB seeks gov’t loans amid rice harvesting

RDB seeks gov’t loans amid rice harvesting

Content image - Phnom Penh Post

RDB seeks gov’t loans amid rice harvesting

State-owned Rural Development Bank (RDB) plans to request another $50 million from the government for the rice industry, as it has already lent $49 million to the sector, says RDB CEO Kao Thach.

He said while rice facilities are being put in place, demands for loans will continue to grow and that RDB only has $1 million remaining to offer as loans, despite it being the beginning of the harvesting.

“We are [receiving] more loan applications, and as rice facilities are already in operation, demands for loans will increase,” he said.

The government’s decision to disburse loans directly through RDB sidestepped the Cambodian Rice Federation – the industry body that has lobbied the government since March 2016 to provide emergency funds to 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.

Another $23 million was injected by the government in August last year, bringing the total to $50 million aimed at propping up the struggling industry.

Since loan demand is higher, RDB, Thach said, will request other $50 million from the Ministry of Economy and Finance to meet the industry’s demand.

“We need to request the [ministry] to inject another $50 million for next season, as our budget this season could not meet the needs of the rice industry,” he said.

Lay Chhun Hour, the owner of Battambang province’s Lay Se Rice Mill, who has used RDB loans for two years, said the government’s budget for the rice industry is key to collecting paddy and maintaining the market and price for farmers.

“Since the government provides loans through RDB, it will not only help rice millers but farmers by maintaining the paddy price and preventing it from unofficially flowing excessively to neighbouring [countries],” he said.

Chhun Hour asked the government to increase its loans for the rice industry.

“If the government increases its loans three-fold, all the paddy can be collected to meet production targets for exports,” he said.

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Schools drawn into Manet degree row

    Prime Minister Hun Sen stepped into the Hun Manet-Sam Rainsy war of words over the validity of Manet’s degree from the US Military Academy at West Point, set off by Rainsy’s claims that Manet had received a “second-class degree” or “honorary degree”. Hun

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished