A rice selling location in Cambodia (Photo: VNA)
Phnom Penh (VNA) – The Cambodian government on September 16 announced a special loan package of 27 million USD to buy paddy from farmers to stabilise rice prices, which are plummeting.

According to the Ministry of Economy and Finance, the Rural Development Bank (RDB) will manage the package, including 20 million USD from the government and 7 million USD invested by the RDB.

The loan will be granted to rice millers to purchase paddy from farmers at a reasonable price from mid-August to early next year.

Businesses could buy around 90,000 tonnes of paddy at a minimum price of 230 USD per tonne.

The paddy price fell from 242 USD per tonne in mid-August to 188 USD per tonne at present.

At a meeting with nearly 100 rice enterprises on September 16, Cambodian Minister of Commerce Pan Sorasak said many countries promised to import milled rice from Cambodia.

Specifically, European countries will buy some 300,000 tonnes of rice each year, while China pledged to purchase 200,000 tonnes in the 2016-2017 crop.

Indonesia and Timor Leste are expected to import 400,000 tonnes and 200,000 tonnes respectively from Cambodia if agreements on rice prices and types are reached, he noted.

According to Cambodia’s Ministry of Agriculture, the country produced over 9 million tonnes of paddy in 2015.-VNA