Logo of Phnom Penh Post newspaper Phnom Penh Post - Thai rice cuts pose problems

Thai rice cuts pose problems

Thai rice cuts pose problems

7 Suphan Buri farmer

Thailand’s recent announcement of a 20 per cent price cut within the government rice-pledging scheme will have little impact for Cambodian exports, but farmers may feel the effects, say industry insiders.  

In an article published in the Bangkok Post on June 19, Thailand’s cabinet had agreed to reduce the price paid to rice farmers, from 15,000 baht ($490) to 12,000 baht per tonne.

Sok David, vice president of Golden Rice Cambodia told the Post yesterday that he does not think the reduced price will affect the Cambodian rice industry yet as it is still higher than paddy prices in Cambodia.

“We are still getting many inquiries from Thai traders that can not find good prices in Thailand,” David said. “So they are turning to Cambodia for the same or higher quality rice at a better price.”

While Cambodia’s white rice has challenges competing with neighbouring countries, the Kingdom’s fragrant rice export is still holding strong, experts say.

On average, the price of Thai’s fragrant rice is $1,150 per tonne, $100 to $150 higher per tonne than Cambodian fragrant rice.

Song Saran, chief executive officer and President of AMRU Rice Cambodia, said the Thai price reduction may reduce the flow of paddy from Cambodia to its two neighbouring countries.

“Now Vietnam’s rice is too cheap and Thailand reduced the price. So, the farmers will have nowhere to sell the paddy,” Saran said.

Cambodia has about three million hectares for paddy cultivation producing about 9 million tonnes per year in both the rainy and dry seasons.

Saran says changes to the Thai policy will need greater commitment from the entire Cambodian rice industry and the government to counter the impacts.

“It needs the support from government, banks, rice exporters, and private sectors to invest in purchasing paddy rice from farmers during the harvesting,” he said.

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • Prime Minister: Take back islands from inactive developers

    The government will “take back” land on roughly 30 islands from private companies that have not made progress on planned developments, Prime Minister Hun Sen said in a speech on Monday that also targeted land-grabbing villagers and idle provincial governors. Speaking at the inauguration of the

  • Land on capital’s riverfront is opened up for investment

    The government has signed off on a proposal to designate more than 9 hectares of land along Phnom Penh’s riverfront as state-private land, opening it up for private investment or long-term leasing. The 9.25-hectare stretch of riverfront from the capital’s Night Market to the

  • Royal Group's Koh Rong luxury hotel officially opens

    The Royal Sands Koh Rong hotel on Monday marked its official launch as the first luxury resort on Cambodia’s most visited island. Prime Minister Hun Sen presided over the inauguration of the hotel, which has been open since December, and features rooms priced at