Govt lends revolving credit to over 30 rice mills

Govt lends revolving credit to over 30 rice mills

The credit aims to provide working capital for rice procurement while ensuring fair prices for farmers.

More than 30 rice mills and exporters have received revolving credit under the Royal Government of Cambodia’s special financing programme, an initiative designed to support the agricultural sector and stabilise rice prices amid a challenging 2025 harvest season, according to the Agricultural and Rural Development Bank (ARDB).

As of early December 2025, a total of 31 rice mills and rice exporters have accessed funding through the programme, which aims to provide working capital for rice procurement while ensuring fair prices for farmers.

Kao Thach, Royal Government Delegate in Charge and CEO of ARDB, inspected the progress of rice procurement and stock management at three rice mills on December 6, in Siem Reap and Kampong Thom provinces. The facilities visited included Rice Mill 168, Nguon Hong Rice Mill, and Sek Meas Rice Mill, all of which have benefited from the revolving credit initiative.

“The programme represents both an encouragement and active contribution from the private sector in partnership with the Royal Government to respond to the decline in rice prices during this year’s harvest,” ARDB said in a statement.

The special financing programme, valued at $40 million, was initially launched to strengthen the agricultural sector, identify markets, and maintain price stability for rice and other agricultural products. Recognising ongoing challenges in the sector, the Royal Government approved an additional $40 million on November 8, 2025, to support rice collection and purchasing during the late 2025 and early 2026 harvest periods.

ARDB noted that domestic rice prices have fallen in line with declining international prices, as some countries continue to draw from their 2024 food security stocks, while rice production both in Cambodia and abroad has increased.

“In response to this price drop, the Royal Government has been closely monitoring the market and taking intervention measures to protect farmers’ livelihoods. These include releasing funds through the ARDB to provide loans as working capital for rice mills partnering with the Ministry of Agriculture, Forestry and Fisheries to collect and purchase rice at reasonable prices from farmers,” the bank said.

The initiative aims to secure as much rice as possible from farmers during the harvest period between November 2025 and early 2026, ensuring both market stability and sustainable income for the agricultural community.

With this programme, the Royal Government continues to demonstrate its commitment to supporting Cambodia’s rice sector, safeguarding farmers’ income, and maintaining national food security.

khmertimeskh