A series of contracts have been implemented by 40 communities and six production groups, including a memorandum of understanding (MoU) with a microfinance institution to guarantee payment at harvest time to 2,236 farming families.

The 46 contracts cover an area of 6,690 hectares and have been implemented by 2,236 farming families in seven districts. This covers 17,663 tons of rice varieties and contracts to purchase 6,233 tons of Romduol rice, 2,890 tons of fragrant rice, 1,850 tons of OM rice tons, 6,690 tons of short grain rice, and additional contracts for vegetables.

On Tuesday, at Kampong Thom Provincial Hall, Song Saran, Chairman of the Board of the Cambodian Rice Federation (CRF), Chan Sokheang, CRF President, and CRF members in Kampong Thom Province attended the signing ceremony of agricultural production contracts.

Contracts were signed between six rice mills and 46 communities in Kampong Thom province under the chairmanship of Dith Tina, Minister of Agriculture, Forestry and Yang Saing Koma, Minister Delegate to the Prime Minister and Secretary of State for the Ministry of Agriculture, Forestry and Fisheries, and 200 community members.

The agricultural contracts consist of 46 contracts implemented by 40 communities and six production groups. An MoU was also signed with AMK Microfinance Institution to guarantee payment at harvest time, according to a press release from CRF.

The 46 contracts include AMRU Rice (Cambodia) Co.Ltd, which has 22 contracts for 3,000 tons of rice and eight vegetables; Signatures of Asia Co., Ltd for 6,690 tons; Kompong Thom Rice Mill signed four contracts equal to 2,020 tons; B.R.M Agro Co., Ltd signed two contracts equal to 2,928 tons; and Daily Fresh Food Company / Chou Pheng Rice Mill signed two contracts equal to 1,180 tons.

The agricultural contract signing ceremony was organized by the Department of Agriculture, Forestry and Fisheries and CRF, with the support of the Department of Agro-Industry of the Ministry of Agriculture, Forestry and Fisheries, Kampong Thom Provincial Administration and the Rural Development and Agriculture Bank.

At the signing ceremony, Sokheang, CRF President, stated that the progress of the rice sector is the result of strong leadership policies and the clear vision of the Government in boosting rice production and exports. This has resulted in a surplus of nearly six million tons of Cambodian rice production, enabling Cambodia to grind, process and export rice to neighboring countries.

In the first five months of 2023, Cambodia exported 278,184 tons of rice to international markets, worth more than $191 million and exported 2,142,483 tons of rice to neighboring countries. This is approximately 1.37 million tons of rice, worth more than $545 million. Overall, the export of rice and millet brings more than $736 million into the Cambodian economy.

Saran, CRF Chairman, said there remain challenges in the rice sector in production, processing, and export with countries that produce rice like Cambodia, as well as competition on cost, quality, sustainability, and innovation.

The most effective and predictable response is the preparation of agricultural contracts, which is a viable concept and has been identified as a priority policy of the Ministry of Agriculture, Forestry and Fisheries, he added.

Dith Tina, Minister of Agricultural, Forestry and Fisheries, said to increase farmers' profits and reduce costs, as well as implement proper production standards that can reduce the use of chemical inputs, farmers need to diversify to meet specific market needs and ensure high quality rice varieties and prices for farmers.

Kao Thach, Royal Government Delegate in charge of the Director General of the Bank for Rural Development and Agriculture, also expressed pride that Cambodian rice has won the title of "Outstanding Rice" of the World in 2022 at the World Rice Conference.

He also mentioned the Government's attention to the rice sector by introducing intervention measures, especially through special financing as investment capital and working capital. Interest rates and concessions have addressed some of the challenges, as well as the infrastructure of warehousing and drying mills and the lack of working capital for rice procurement in the past, which has been implemented by ARDB from 2009 until today.

Nguon Rattanak, Governor of Kampong Thom Province, also reported on the progress of Kampong Thom Province, which is an important province in rice production. Taking into account both dry and wet rice, there are more than 290,000 hectares of land that can produce more rice.

At the ceremony, Dith Tina, recommended the community use pure seeds and proper technical implementation. He also advised establishing a new agricultural system that helps build strong communities through the implementation of policies of commune agricultural technical officers, as well as communities working together with transparency, accountability and community responsibility.

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meas.molika@kiripost.com