Amidst the persistent decline in rice prices, the Ministry of Agriculture, Forestry, and Fisheries has taken decisive action by drafting a proposal aimed at safeguarding the value of rice and ensuring food security.

This proposal is set to be presented to the chairman of the Economic and Financial Policy Committee in response to rice prices dropping to as low as KHR900 (USD0.221) in certain provinces.

Yang Saing Koma, the secretary of state at the ministry, disclosed on February 27 that he presided over a pivotal meeting of the Joint Working Group on Agricultural Price Coordination.

The gathering, held at the ministry’s premises, focused on a comprehensive assessment of the rice trade landscape amidst the prevailing challenges of declining prices and concerns regarding food security.

During the session, the group meticulously scrutinised various aspects, including the operational status of local mills, rice exports to Vietnam, and the current progress of the harvest.

Additionally, they conducted evaluations encompassing production dynamics, spanning from the culmination of the dry season to the advent of the rainy season.

“The expert working group has been diligently monitoring and analysing the trends in rice prices and production costs. Our aim is to be prepared to assist in stabilising rice prices at a reasonable level and ensure that farmers receive a fair profit,” he explained.

Saing Koma noted that the total rice harvest nationwide during February and March for the dry season might reach approximately three million tonnes.

“Based on the ministry’s evaluation, although the [value of rice] has dipped slightly below KHR1,000 [usd0.246] per kilogramme, it remains higher than in 2022. In 2023, prices saw a significant increase, driven by heightened demand in international markets amidst global food shortages,” he stated.

Chan Sokheang, president of the Cambodia Rice Federation (CRF), commented that in a free market economy, prices fluctuate according to the mechanisms of supply and demand.

“Rice prices are subject to various factors, including the harvest season, total yield, moisture, drying capacity, harvest expenses and market demand,” he explained.

Nhek Sarith, a mill owner in Siem Reap’s Sotr Nikum district, stated that the price of rice on February 27 was KHR950 riel (USD0.233) in the district, while the purchasing price from farmers stood at KHR900 (USD0.221).

“The price of 900 riel, though marginally lower, still ensures profitability for our farmers … Normally, we export rice to Vietnam, but when Vietnam also enters its harvest season, they typically lower their prices. However, sometimes the price drops excessively, adversely affecting our farmers’ profitability,” he noted.

According to the ministry, this year’s dry season rice production significantly exceeded expectations. While the initial plan accounted for only 500,000ha, the actual cultivation spanned nearly 800,000ha, leading to water shortages in some areas.

A report from the CRF indicated that rice exports to Vietnam in January amounted to nearly 600,000 tonnes, valued at over USD184 million. Rice exports to Vietnam are ongoing, even as its prices have begun to decline.