$35M in stimulus package for modern farming communities

$35M in stimulus package for modern farming communities

The Cambodian Government will allocate a special budget of $35 million in stimulus package to support the provision of offering low-interest loans to modern agricultural communities over a three-year period, starting from the current year until 2027.

The stimulus package aims to create a mechanism to strengthen the agricultural markets while increasing the productivity.

Prime Minister Hun Manet announced the package while speaking on the second day of the first-ever National Assembly-Senate Congress, at the National Assembly Palace in Phnom Penh, on Tuesday.

“The Royal Government has decided in principle to prepare a special budget package of an additional $35 million to support the provision of low-interest loans to modern agricultural communities over a three-year period of 2025-2027,” the Prime Minister said.

The government is expanding the development of modern agricultural communities in the provinces and covering other high-potential crops such as cashews, rubber, and durian, he added.

The modern agricultural communities focus on specific strategic crops including rice, vegetables, cashews, and pepper, covering an area of 1,421 hectares.

Mam Bunneang, a member of the Senate, applauded the positive result of organising agricultural communities in Cambodia, especially with an aim to boost agricultural product exports.

“The initiative of organising into farming communities, under government support, has transformed Cambodia from a country lacking in meat and vegetable to one that exports agricultural prodcuts. This is a great success for the government, with many communities benefiting,” he said in his speech at the Congress.

Agriculture is one of the four pillars supporting Cambodia’s economy. The Royal Government has announced the implementation of a new strategic policy for agricultural development, aiming to upgrade agriculture from household farming to commercial farming and enhance farmers’ income through value-added products.

Under the priority policy, the government deployed 250 agricultural officials and the number will be raised to over 1,300 by the end of the current year in communes nationwide to add human resources for the agricultural sector’s development.

These officials will technically assist farmers, form agricultural cooperatives, link production chains alongside guiding farmers to reduce production costs.

The ministry’s policies for the agricultural sector not only focus on ensuring food security in the country but also on finding export markets for high-quality agricultural products.

Dith Tina, Minister of Agriculture, Forestry, and Fisheries, recently called for increased investment in the processing of agricultural products to enhance quality with value-addition, focusing on local commodities such as rice, cashew nuts, rubber, and fishery products for both domestic markets and exports.

“Enhancing processing capabilities is important for boosting the quality and marketability of agricultural products in the international markets,” he said.

The priority for 2025 is to increase the quality of production for the market and reduce production costs with an aim to increase income for farmers while maintaining the price stability for all essential food items, he added.

Cambodia has produced a total volume of 39 million tonnes of agricultural produce nationwide in 2024, up 7.4 percent from 36.3 million tonnes in 2023, according to a report by the Ministry of Agriculture, Forestry and Fisheries (MAFF).

“Over 11 tonnes (11.66) or 30 percent of the total agricultural produce were exported abroad,” the MAFF report added.

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