In a move to satisfy market needs and guarantee product quality and affordability, three agricultural communities in Kampong Chhnang province have formed a significant business alliance with the Cambodian Agriculture Cooperative Corporation Plc (CACC).

Their aim is to streamline the production and supply of Cambodia’s cherished Phka Rumduol fragrance rice, in a deal estimated to exceed 400 million riel ($100,000), said the provincial administration on June 28.

The binding contract was signed during a ceremony presided over by Ngin Hun, director of the provincial Department of Agriculture, Forestry and Fisheries, and Kann Kunthy, managing director of the CACC. Also present were Chhong Sophal, the project manager of Farmer and Nature Net (FNN).

Both parties have pledged to enhance their rice yield, thus satisfying market requirements while ensuring that the quality and pricing of their produce remain competitive. Additionally, they have agreed to collaborate in the cultivation of various crops and the rearing of livestock.

“Cooperatives will receive a sustainable price, which means their agricultural output will not suffer from price reductions,” said Hun.

He disclosed that some farming cooperatives in Kampong Chhnang are yet to enter into this agreement, but efforts are ongoing to persuade them to join for mutual benefits.

Separately, Kunthy revealed that the CACC has made considerable contributions this year by providing about 8,300kg of the Phka Rumduol rice variety as loan and approximately 40 tonnes of organic fertiliser for this year’s cultivation. This is in line with the company’s commitment to enhancing yield and quality for export.

“Agricultural contracts play a key role in promoting and facilitating agreements with farming communities and increase rice exports to the global markets,” Kunthy said.