Sreekanth Ravindran / Khmer Times

Synopsis: According to experts, rice production costs are high in the Kingdom due to climate change impacts, which causes droughts and floods and lead to unpredictable yields.

Allaying fears of farmers in the Kingdom, the Ministry of Agriculture, Forestry and Fisheries (MAFF) said on Friday that it will find ways to keep the cost of rice production under control.

The ministry in a statement said that agricultural officers at all levels, especially across municipalities, are actively working with the rice farmers in every agricultural activity that includes harvesting, transporting grains and final selling.

It pointed out that the integration of modern agricultural technologies into farming remains the only solution to cut costs so that the farming communities benefit from agriculture.

“The ministry will continue to support the next agricultural season in terms of providing support in areas such as contract cultivation and distribution of fertilisers alongside working towards reducing the risk of market fluctuations,” the statement added.

According to agricultural experts, rice production costs are high in the Kingdom due to climate change impacts, which cause droughts and floods and lead to unpredictable yields and water scarcity, combined with a lack of post-harvest infrastructure and modern farm technology, small farm sizes, and high energy costs for milling operations.

Additionally, competition from regional rivals with more advanced processing and storage facilities, a lack of access to capital for farmers and millers, and low-profit margins for producers also contribute to increased costs and reduced competitiveness.

The requirement to cut costs has become so urgent amid paddy prices hitting below 600 riels per kilogram in the Kingdom last week.

Khmer Times last week reported that many farmers who have rented lands are facing considerable losses of KHR 500,000-1,000,000 ($125-$250) per hectare, and are now considering returning to Thailand for work and income security.

The decline in rice prices has broader implications for the agricultural supply chain. Lower farmgate prices affect not only farmers but also millers, traders, and exporters, threatening cash flow throughout rural communities, and the MAFF identifies production cost reduction as one of the key solutions to address the crisis.

The Cambodia Rice Federation has previously urged the government to take steps to stabilise farmgate prices, including investing in storage facilities, milling capacity and export diversification.

However, renting farmers emphasise the need for more immediate interventions such as price support programmes, government-backed purchasing schemes, or input subsidies, preventing households from falling into deeper debt while supporting sustained rice production.

Published Date: September 2, 2025