Roundup: Cambodia cherishes ambition to tap potential of rice production

As its rice production chalked up an harvest again in 2006, Cambodia, a traditional agricultural country with rice as its major crop and staple food, has been fueling its dream to build a rice exporters' coalition in order to share more profits and procure economic power.

The kingdom's rice production rose to six million tons in 2006, five percent higher than 2005, according to the Cambodian Sin Chew Daily on Thursday.

Market also responded positively in 2006 as rice price jumped to a range between 120 U.S. dollars and 135 U.S. dollars per ton, while seeds of top-quality fragrant rice were sold at 180 U.S. dollars per ton, the paper quoted statistics form Ministry of Agriculture and Fisheries as saying.

However, Pu Kea, Chairman of the Rice Hulling Mills' Association in Battambang province, told reporters that huge profits went to the exporters from Malaysia, Singapore and African countries, while the farmers and the mill owners could only make limited incomes from simple processing procedures.

"They don't have enough money to run export business," Pu Kea said.
Pu Kea found echo with Prime Minister Hun Sen, in his perception of the kingdom's awkward situation of surrendering profits to foreigners instead of its own planters and processors.

Back to Dec. 20, 2006, as part of his efforts to turn the table, Hun Sen called on Laos, Myanmar, Thailand and Vietnam to join hands with Cambodia to form an association of rice exporting countries to stabilize rice price and share more profits from rice sales.

An association of the rice exporting countries along the Mekong River could be important for the world market, he said, adding that the association was somewhat like the Organization of the Petroleum Exporting Countries (OPEC).

The association could have said in rice price adjustment and play a role in balancing OPEC's influence, he said.

"If they want cheaper rice, then they should decrease oil prices," he added.
According to official statistics, Cambodia planned to export 1. 5 million tons of rice in 2006. Annual rice exports in the region of the Mekong River stand at over 10 million tons, almost half of the world's annual rice exports.

Source: Xinhua