Rice Export Is Still Difficult – Saturday, 16.1.2010

Posted on 17 January 2010. Filed under: Week 647 | Tags: , , , , , , , , , , , , , , , , , , , , |

The Mirror, Vol. 14, No. 647

“Phnom Penh: According to the Ministry of Agriculture, in 2009 there was a surplus of more than 3 million tonnes of paddy rice or more than 2 million tonnes of rice. In 2010, just the Philippines alone need to buy in 2 million tonnes of rice, and other African countries need to buy rice also. Is Cambodia ready for exporting rice abroad?

“Regarding this problem, an expert, who was involved in marketing to help export rice, said that Cambodia still cannot export rice on a large scale. Family-scale export is possible, as our country is not yet ready to do big rice businesses.

“The general secretary of a Cambodian association for small and medium scale business, Mr. Ut Ren, spoke to journalists in an interview on Wednesday [13 January 2010], saying that Cambodia is not yet able to export rice on a large scale, because Cambodia does not yet have an adequate rice export structure. He added that the country does not yet have large scale storehouses for paddy rice. A rice milling house can normally store 4,000 to 5,000 tonnes, but these too hardly exist in Phnom Penh. There has not yet been an effort to gather all forces together. Most small rice export associations operate to serve only their own interest and they do not cooperate and trust each other, and there is no coordination between the state and the private sector. Also the costs of transportation is still high, compared to neighboring countries. In Vietnam, it costs only US$7 to US$12 to transport one tonne of rice to the ports, but in our country, it costs up to US$40 to US$50. Transport is possible only in the dry season, but not in the rainy season. There is much more investment needed before smooth export procedures are possible. In addition, to get a container loaded with rice to be exported, one needs to pay unofficial expenses of at least US$55 to customs, US$55 to CamControl, and US$30 for one document to the Ministry of Agriculture. Besides, it is necessary to pay US$50 to the Ministry of Commerce for a license.

“Mr. Ren added that in addition, our country does not have marketing experts at international markets. Vietnam has rice market advertising offices in the Philippines and in Africa. Thailand has more than 40 market advertising offices worldwide.

“He went on to say that therefore, to become a rice exporting country, first, Cambodia needs to have a rice export support structure. Rice export has its special criteria, unlike the export of other products. The government should create a separate high level authority to guide the export of rice. The government should implement a integrated structure policy, that means that customs, CamControl, the agriculture and the commerce related authorities have to work jointly. At present, when a rice exporter has received a license from the Ministry of Commerce, they need to go next to customs, then to CamControl, and then to those in the agricultural areas having rice to sell – this takes much time.

“He said that because of existing difficulties, high costs, and much time needed to run from place to place [to satisfy the related bureaucratic necessities], owners of rice mills still prefer their traditional family-scale businesses.” Rasmei Kampuchea, Vol.18, #5101, 16.1.2010

Newspapers Appearing on the Newsstand:
Saturday, 16 January 2010

Deum Ampil, Vol.4, #389, 16.1.2010

  • The Cambodian Prime Minister [Mr. Hun Sen] Sent Condolences for the Large Number of [ earthquake] Deaths in Haiti

Kampuchea Thmey, Vol.9, #2152, 16.1.2010

  • Cambodia Rejected [Thai Deputy Prime Minister] Suthep’s Accusation that [Thai ousted and fugitive prime minister] Thaksin Shinawatra Takes Cambodia as a Basis for Activities against Thailand
  • Cambodian Citizens Can Have Visas-on-Arrival to Enter Kuwait Directly at Kuwait Airports [according to the Ministry of Foreign Affairs and International Cooperation]

Link:

On 14 January 2010, many international media reported that Mr. Thaksin Shinawatra will visit Cambodia again. “Cambodia’s Foreign Ministry has confirmed that Thaksin will visit Cambodia later this month,” reported Radio Australia News.

On 15 January 2010, the Bangkok Post quoted Mr. Noppadon Pattama, a former Thai minister of foreign affairs and at present a legal adviser to the Shinawatra family, saying that Mr. Thaksin Shinawatra has dropped his plan to visit Cambodia.

“Previously, Thaksin had planned to visit Cambodia from Jan 15 to 17, but he has scrapped the plan. He will visit another country in Asia instead,” Mr Noppadon said.

Asked about the Cambodian foreign minister’s statement that Thaksin would visit Phnom Penh this month, Mr Noppadon said he had no idea.

Khmer Machas Srok, Vol.4, #581, 16.1.2010

  • [High ranking official of the Cambodian People’s Party] Cheam Yeap Admitted that Cambodia Is in Trouble with Its Debt to Russia [Cambodia owes about US$1 billion; and Russia has not responded to Cambodia’s request to cancel it]

Link:

In addition to the US$1 billion debt to Russia there is a smaller debt of US$300 million which Cambodia owes to the USA.

It should be noted that reports about new financial assistance from China often do not state clearly what is aid, and what is repayable loans. We do not know of any comprehensive listing of the total amount of money at present owed by Cambodia to China, and when how much will have to be repaid.

Koh Santepheap, Vol.43, #6859, 16-17.1.2010

  • A Nine-Year-Old Girl Was Raped and Killed in a Forest [the perpetrator is not known – Kratie]

Rasmei Kampuchea, Vol.18, #5001, 16.1.2010

  • Rice Export Is Still Difficult
  • In 2010 Cambodia Will Have Three More Labor Export Markets [accepting Khmer workers: Kuwait, Saudi Arabia, and the United Arab Emirates]

Have a look at the last editorial – you can access it directly from the main page of the Mirror.
And please recommend us also to your colleagues and friends.

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