Local firm buys over 30K tonnes of rice from farmers

Local firm buys over 30K tonnes of rice from farmers

Direct purchase guarantees farmers fair prices in advance and provides them with capital support, technical assistance, and reduced costs for fertiliser and agricultural inputs.

Contract farming is accelerating in Cambodia following Virak Buntham Company’s move to purchase more than 30,000 tonnes of rice directly from farmers.

According to a statement issued on Wednesday by the Ministry of Agriculture, Forestry and Fisheries (MAFF), the company has begun collecting rice at 950 riels per kilogram from modern farming communities in Battambang province under a coordinated contract farming initiative.

Around 2,000 farmers from Battambang and Banteay Meanchey provinces, all members of six modern farming communities, have signed agreements to produce rice under contract with the support of MAFF.

The arrangement guarantees farmers fair prices in advance and provides them with capital support, technical assistance, and reduced costs for fertiliser and agricultural inputs.

The MAFF has been actively promoting contract farming across the country, highlighting its benefits for improving farmers’ livelihoods.

Guaranteed markets, stable pricing, access to credit, and technical support help farmers reduce risks related to production and fluctuating market prices.

These improvements can lead to higher incomes, better productivity, and a more competitive agricultural sector.

Through such agreements, small-scale farmers are better able to obtain resources that may otherwise be beyond their reach.

Contract farming also ensures that farmers have a reliable buyer and can secure competitive prices that often exceed those on the open market. The process eliminates the uncertainty of finding buyers or being forced to sell crops at lower prices.

Permanent Deputy Prime Minister Vongsey Vissoth previously called on companies to increase direct purchases from local farmers and communities.

He encouraged the private sector to provide working capital, quality seeds, and technology transfer to strengthen domestic supply chains, expand production capacity, and boost export potential.

He stressed that linking investors and local farmers through structured agreements would support sustainable growth for both businesses and rural communities.

MAFF spokesman Khim Finan recently told reporters that Virak Buntham Company plans to purchase rice directly from six modern rice-producing communities—five in Battambang and one in Banteay Meanchey.

He said the company intends to sign contracts with pre-agreed prices ranging from 950 to 1,050 riels per kilogram for Sro Nge rice, offering farmers prices higher than current market rates and guaranteed access to buyers.

Prime Minister Hun Manet, speaking at the first National Assembly–Senate Congress in June, announced that the government will allocate a $35 million stimulus package to provide low-interest loans to modern agricultural communities from this year through 2027.

The initiative aims to strengthen agricultural markets, increase productivity, and support the expansion of modern agricultural communities across the provinces. The programme will also encompass high-potential crops such as cashews, rubber, and durian.

khmertimeskh