Covid-19 demand for milled rice could mean record exports
Covid-19 demand for milled rice could mean record exports
Cambodia could export between 800,000 and one million tonnes of milled rice this year, buoyed by sustained demand stemming from Covid-19 uncertainty, Ministry of Agriculture, Forestry and Fisheries senior official Ngin Chhay said on Wednesday.Chhay, the director-general of the ministry’s General Directorate of Agriculture, told a press conference that the Kingdom exported 350,000 tonnes of rice in the first five months of the year, to more than 60 countries.
He said: “I hope that this year, according to estimates, rice exports may near the one million tonne mark if the orders retain their momentum, or at least exceed 800,000 tonnes.”
At the same time, Chhay urged farmers, investors and exporters to work together to ensure that the Kingdom’s products meet quality standards to maintain existing markets and secure new ones.
The ministry’s Secretariat of One Window Service for Rice Export Formality reported that milled-rice exports to the international market in the first five months of this year skyrocketed 42.34 per cent to 356,097 tonnes from 250,172 tonnes during the same period last year.
The European market accounted for 122,010 tonnes, up 51.10 per cent year-on-year from 80,749 tonnes, the Chinese market 136,825 tonnes, up 25.26 per cent, ASEAN countries 45,825 tonnes, up 45.39 per cent, and other destinations 51,437 tonnes, up 79.40 per cent.
Fragrant rice accounted for 289,287 tonnes, or 81.24 per cent, white long-grain rice 62,779 tonnes and long-grain parboiled rice 4,031 tonnes.
Last month alone, rice exports reached 55,845 tonnes, an increase of 53.38 per cent compared to May last year, of which 51,683 tonnes was fragrant rice, 3,578 tonnes was white long-grain rice and 584 tonnes was long-grain parboiled rice.
Cambodia Rice Federation (CRF) board chairman Hun Lak said milled-rice exports showed remarkable performance in the first five months this year compared to last year.
He attributed this to two main factors – increased domestic production and expanding stockpiles worldwide in response to the pandemic.
Lak said: “Looking at data over the past five months, Cambodian milled-rice exports will be no less than 800,000 tonnes, but everything depends on the outcome of the auctions.
“If everything runs as smoothly as it is now, then exports will hit the one million tonne target as predicted.”
CRF secretary-general Lun Yeng told The Post that Cambodia is now capable of exporting milled-rice in excess of one million tonnes per year as paddy production continues to grow gradually.
The surge in exports, especially of fragrant rice, will generate more revenue for the Kingdom, he said.
“But I would not be so bold as to formulate an estimate of how much money we would bring in, as prices are subject to fluctuation. I do, however, expect we’ll make more than last year,” said Yeng.
Cambodia’s premium-grade fragrant rice sells for $920 per tonne on the international market, while standard-grade fragrant rice fetches $830 and standard-grade white rice goes for $550, he said.
Premium-grade fragrant rice accounts for more than 80 per cent of Cambodia’s total rice exports.
The government originally pledged in August 2010 to export one million tonnes of rice by 2015.
But the Kingdom exported 387,000 tonnes of milled rice in 2014, 538,396 tonnes in 2015, 542,144 tonnes in 2016, 635,679 tonnes in 2017, 626,225 tonnes in 2018 and 620,106 tonnes last year, CRF data show.
The Kingdom’s 2019 milled-rice exports were worth about $501 million, down 4.3 per cent compared to $524 million in 2018.
