Logo of Phnom Penh Post newspaper Phnom Penh Post - State loan for local cassava processor

State loan for local cassava processor

State loan for local cassava processor

State-owned Rural Development Bank (RDB) has loaned a domestic cassava processor and exporter US$1 million in a bid to tame instability in the market for the crop, the bank said.

Loan recipient Power Unity Cambodia Investment Ltd will use the loan to buy cassava from Cambodian farmers and then export to China.

Cassava farmers, especially those in the Kingdom’s northeast, have expressed concern on unstable crop orders primarily from Thailand.

Prices for the plant soared in early to mid 2011, and farmers scraped other crops such as corn for the more lucrative cassava. Thai border regulations and oversupply in Thailand, however, have left many cassava fields in Cambodia unharvested, the Post reported.

Power Unity could not be reached yesterday but the Post reported in January that the company planned to export 300,000 tonnes of cassava to China this year.

While the majority of cassava exports go to Thailand, the government is now looking to China as a larger and more stable buyer of one of the Kingdom’s primary agricultural exports.

“The government has been encouraging investors to establish cassava-processing factories and export cassavas to the Chinese market in order to avoid depending on the markets of neighbouring countries,” RDB Director General Son Koun Thor said.

Between 70 to 80 per cent of Pailin provinces cassava has not been harvested because there is no market for it, Chea Kea, president of a cassava-drying plant in Pailin province, said.

MOST VIEWED

  • Government denies claims former Thai PM Yingluck issued Cambodian passport

    Government officials on Thursday denied claims that a Cambodian passport was issued to former Thai Prime Minister Yingluck Shinawatra, who reportedly used it to register a company in Hong Kong. The Hong Kong-based English language South China Morning Post (SCMP) on Wednesday reported Hong Kong

  • US’ Cambodian ambassador appointment blocked

    The US Senate returned the nomination of Patrick Murphy as Ambassador to Cambodia back to US President Donald Trump on Thursday, as the American government shutdown entered its third week. The US Senate website announcement said it returned Murphy’s nomination as ambassador as his

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million