The Ministry of Agriculture, Forestry and Fisheries met with the Cambodia Rice Federation (CRF) on January 5 and agreed to initiate contract farming between 33 rice mills and rice farming communities.

Ministry secretary of state Yang Saing Koma announced via social media that the agreement will see the 33 rice mills buy a total of 100,000 tonnes of paddy in the first phase of the agreement, which will be processed and exported.

“Under the leadership of agriculture minister Dith Tina, we will work together to ensure the success of the deal. By implementing these contracts, we will establish a model which will solve farmers’ difficulties finding markets for their produce,” he said.

In November last year, when the rice harvest was at its busiest time, rice prices fell, prompting the ministry to collaborate with rice mills to introduce new standards for ensuring the stability of rice commodity prices in Battambang and Banteay Meanchey provinces.

Green Trade Company – a state-owned enterprise under the Ministry of Commerce – has introduced a standard minimum price to ensure the stability of prices in the wholesale rice market.

On January 5, Dith Tina said that future development of the agriculture sector rests on the export of safe and high-quality products. While the price of agriculture products is stable for local markets, luxury commodities can be sold at higher prices in international markets.