Logo of Phnom Penh Post newspaper Phnom Penh Post - Traders unable to buy paddy as prices soar

Traders unable to buy paddy as prices soar

Content image - Phnom Penh Post
The price of paddy near the Chakrei border checkpoint in Prey Veng province’s Preah Sdech district rose from 1,070-1,080 riel ($0.27) per kilogramme on Monday to 1,100-1,120 riel on Tuesday following an influx of Vietnamese traders. YOUSOS APDOULRASHIM

Traders unable to buy paddy as prices soar

As a ban on white rice and paddy exports is set to go into effect this weekend, Vietnamese traders seize the moment to buy in bulk, buoying prices beyond what local rice millers and traders are able to pay.

Prime Minister Hun Sen on Monday ordered the suspension of white rice and paddy exports from Cambodia from 11:59pm on April 5, on the grounds of securing domestic supplies while Covid-19 is continuing to spread in Cambodia.

He told the Ministry of Economy and Finance to look into the possibility of disbursing funds to millers to buy paddy from those who had previously sold it to traders in neighbouring countries.

“Let the rice millers buy paddy from those who are harvesting and need to sell it, and buy all the paddy to maintain good prices, and avoid lower prices while there are no traders from Thailand and Vietnam,” the prime minister said.

Chhun Thom, president of Chhun Thom Rice Miller located in Prey Veng province’s Svay Antor district, told The Post on Tuesday that the local buying activity level has remained largely unchanged.

This, he said, is because farmers are taking the opportunity to sell their remaining dry-season harvest paddy stock along the border until the order comes into effect. “My rice millers are not buying much now . . . as the price is rising,” he said.

As of Tuesday, the price of dry-season harvest paddy currently stands at 900-950 riel ($0.22-$0.23) per kilogramme in Prey Veng province, and dried paddy at 1,050-1,100 riel, Thom said.

Another rice mill owner in Prey Veng province, who declined to be named, said many Vietnamese traders had come to buy Cambodian paddy following the announcement.

As the influx of Vietnamese traders continues to buoy paddy prices, local traders and rice millers are no longer able to buy from the farmers, he said.

The price of paddy near the Chakrei border checkpoint in the province’s Preah Sdech district rose from 1,070-1,080 riel per kilogramme on Monday to 1,100-1,120 riel on Tuesday, he added.

“No local dealer or rice miller would even think about buying the crop at that price. I haven’t, and I’ll wait and see if the price drops down a bit.

“The price of paddy will drop slightly from April 6 onwards” as the quality of paddy continues to drop following the end of the dry-season harvest, he said.

State-owned Agricultural and Rural Development Bank (ARDB) encourages all companies and rice millers to continue to purchase OM 5451 and IR 85 (504) paddy from farmers at market prices following the ban, it said in a press release on Monday.

ARDB executive director Kao Thach said it has always supported the agricultural sector by disbursing money to rice millers so that they can purchase additional paddy for stock.

“When the government sets a moratorium on exports, the ARDB must work hard to help the government achieve its plan.

“We are currently preparing the bank’s capital for disbursement to helping rice millers buy paddy from farmers,” Thach said.

He said 70-80 per cent of ARDB’s capital is currently allocated to the rice sector.

Last year, the Kingdom exported around 2.15 million tonnes of paddy to Vietnam, Ministry of Agriculture, Forestry and Fisheries data shows.

MOST VIEWED

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided