Logo of Phnom Penh Post newspaper Phnom Penh Post - Chinese to invest in Kingdom’s rice

Chinese to invest in Kingdom’s rice

Content image - Phnom Penh Post
Employees use a forklift to stack pallets of rice at a storage and processing plant on the outskirts of Phnom Penh in 2015. Heng Chivoan

Chinese to invest in Kingdom’s rice

China’s Henan Yuguang International Economic and Technical Cooperation Co Ltd (HYIETC) has expressed interest in investing in the Kingdom’s rice facilities – a move welcomed by the government and the rice industry.

During a meeting with Minister of Commerce Pan Sorasak on Friday, HYIETC’s board director unveiled a plan to build one million tonne rice storage facilities. If realised, the project will have the capacity to dry 100,000 tonnes of paddy rice per day, boosting Cambodia’s rice exports to 500,000 tonnes per year.

The ministry welcomed the project, saying it will boost the Kingdom’s milled rice exports and reduce the outflow of paddy rice to neighbouring countries, while the Cambodia Rice Federation (CRF) claimed the new facilities will be essential for the Kingdom’s rice industry.

The minister encouraged HYIETC to work with state-owned Green Trade Company to further research the plan and gauge construction costs.

Demand not met

CRF vice-president Hun Lak said current rice facilities are insufficient to keep pace with Cambodia’s increasing production, adding that the sector can currently produce up to nine million tonnes of paddy rice per year.

“It is a very good opportunity for investors as our rice facilities still do not meet demand . . . Rice facilities should have a clear mechanism for serving farmers and rice millers in order to receive mutual benefit.”

Hun Lak said rice facilities should provide better options for small rice millers, such as lower rental costs for storage or drying machines.

With government support, via the state-run Rural Development Bank (RDB), the rice industry has received $15 million to construct facilities in Kampong Thom, Prey Veng and Takeo provinces. Each facility will have a storage capacity of 500,000 tonnes of paddy rice and will be able to dry 1,500 tonnes of rice daily.

Last year, the RDB awarded a $15 million low-interest loan to Thanakea Srov (Kampuchea) Plc, the operator of the Cambodian Rice Bank, to expand its rice storage warehouse in Battambang province and develop the country’s first privately-owned centralised storage facility.

The facility opened on July 3 and has a 200,000 tonne storage capacity for wet paddy rice and processes 3,000 tonnes of paddy rice daily.

In the middle of this year, the Ministry of Agriculture, Forestry and Fisheries launched a rice storage facility funded by the Korean government in Kampong Cham province’s Batheay district. Costing $2.8 million, the facility can dry 80 tonnes of rice per day and store 600 tonnes.

MOST VIEWED

  • LPG gas explosion injures 13 people, including foreigners, in Siem Reap

    An explosion on Wednesday at a liquid petroleum gas (LPG) car and tuk-tuk refuelling station in Siem Reap city has left 13 people, including an American and a Briton, suffering burns. The seven most severely burned, including a provincial police officer, were sent to a Thai

  • Over 100 Chinese nationals to be deported for online scam

    The Ministry of Interior is planning to deport 128 Chinese nationals after they were arrested in Preah Sihanouk province on Wednesday for their alleged involvement in an online money extortion scam. Y Sokhy, the head of the Department of Counter-terrorism and Transnational Crime, told The Post

  • More than 800 people test positive for HIV in 2018

    The National Aids Authority (NAA) said more than 800 people tested positive for human immunodeficiency virus (HIV) last year, joining over 76,000 others aged between 15 and 49 in the Kingdom already infected with the virus. The spread of HIV/AIDS in the Kingdom is showing few signs of

  • Rainsy vow to return on Nov 9 dismissed as ‘political warfare’

    An announcement from the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) that its “acting president” Sam Rainsy would return to the Kingdom on November 9 was dismissed on Sunday as “political warfare”. The CNRP made the announcement on Friday after a permanent committee meeting chaired by