Nhean Chamrong / Khmer Times

Synopsis: The move signals the Royal Government’s ongoing commitment to supporting the agricultural sector as a pillar of rural income and national economic growth, particularly amid global market volatility.

The Royal Government of Cambodia (RGC) Saturday released $40 million budget to intervene in falling paddy prices during the current harvest season, following public concern as prices dropped to as low as 600 riels per kilogramme in some provinces.

Prime Minister Hun Manet wrote on his social media that the RGC has decided to release an additional $40 million to stabilise paddy prices during the harvest season in late this year and early next year through the Agricultural and Rural Development Bank (ARDB).

According to an ARDB press release issued on November 8, the measure aimed to protect farmers’ livelihoods and ensure price stability amid global and domestic pressures contributing to the ongoing price slump.

The funds will be channelled through ARDB’s revolving credit programme to rice mills that partner with the Ministry of Agriculture, Forestry and Fisheries (MAFF) to purchase rice from farmers at reasonable prices, the statement added.

ARDB explained that the decline in paddy prices is mainly influenced by international market trends, and as the global rice prices have fallen due to surplus stocks from 2024 continuing to circulate in 2025, which reduced overall demand.

The statement added that while international demand remains weak, rice production in Cambodia and other major producing countries continues to rise, intensifying market competition and further pressuring farm-gate prices across the region.

The intervention followed growing concerns from farmers who alleged that middlemen were manipulating market prices and exploiting the sharp fall in farm-gate paddy prices.

The Royal Government’s renewed financing initiative reflected an effort to mitigate speculative market behaviour and strengthen domestic purchasing capacity to ensure farmers receive fair and stable returns.

Under the Special Financing Program, ARDB has been extending low-interest loans to eligible rice millers and exporters to secure and store paddy, helping prevent price collapses during the peak harvest period.

The latest $40 million release supplements earlier government efforts aimed at supporting agricultural product collection, expanding markets and stabilising agricultural prices.

ARDB reaffirmed its commitment to collaborate with MAFF and partner rice mills to collect and purchase as much rice as possible and at reasonable prices from farmers, ensuring the benefits reach rural producers directly.

The move signalled the Royal Government’s ongoing commitment to supporting the agricultural sector as a pillar of rural income and national economic growth, particularly amid global market volatility.

It may be noted that rice prices in Cambodia range between 3,000 and 5,000 riels per kilogramme, equivalent to about $0.75 to $1.25 in the market. However, paddy prices have plunged to around 600 riels, or about $0.15 at the production points.

Published Date: November 11, 2025