The Cambodian rice sector is set to lose its duty-free export status to the EU today – its major rice market – after the European bloc decided to impose tariffs on rice from Cambodia and Myanmar to curb a surge in such imports.
The Kingdom’s rice exports saw a 1.5 per cent drop last year compared to 2017 due to the industry’s lingering challenges – the cost of production and competition with the international market.
As a result of more rice facilities constantly being installed, the price of paddy rice for the 2018-2019 season was between 900 riel and 1,300 riel ($0.22 and $0.32) per kg, an increase on the previous season, according to industry insiders.
Salt imports from China are expected to sell at $100 per tonne in the Cambodian market, $25 more per tonne than local salt, according to the Salt Producers Community of Kampot-Kep (SPCKK).
China’s Henan Yuguang International Economic and Technical Cooperation Co Ltd (HYIETC) has expressed interest in investing in the Kingdom’s rice facilities – a move welcomed by the government and the rice industry.
The Cambodia Rice Federation (CRF) has urged the EU to revise its Safeguard Clause as it could prove devastating to the Kingdom’s rice industry. The EU committee has not announced its final decision.
Cambodia's rice exports to the international market fell more than 13 per cent for the first 11 months of the year, compared to the same period last year, a report by the Secretariat of One Window Service for Rice Export Formality said.
Pimelo farmers in Kratie province’s Koh Trong island have expanded their cultivation after the fruit was awarded Geographical Indication (GI) status, said the Koh Trong Pomelo Producer Association.
The Kingdom’s non-GI pepper farmers continue to struggle due to low prices while cultivation is projected to decline next year, said Dar-Memot Pepper Agriculture Development Cooperative executive director Yin Sopha.
Retail petrol prices in the Kingdom continued to fall on Monday amid an increase in crude oil prices in the international market.