Chea Vanyuth / Khmer Times

Synopsis: From smallholder farming and local processing to global exports, these low-interest loans fuel every step of the agricultural value chain.

The state-backed Agricultural and Rural Development Bank (ARDB) has disbursed more than $500 million in loans to farmers, agricultural cooperatives and agribusinesses nationwide to support the agricultural sector, its CEO Kao Thach said.

The low-interest loans cover the entire agricultural production value chain, from cultivation and processing by smallholder farmers to the export of agricultural products, Thach told reporters on the sidelines of a meeting last Friday.

He said that, unlike commercial banks, which primarily focus on financial profits, ARDB’s main mission is to generate “social income” by providing farmers with access to affordable capital.

“To date, the total loan portfolio has reached over $500 million, financing farmers, including small-scale farmers, processors and agricultural exporters across the entire agricultural production value chain, from cultivation to export,” Thach said.

The bank’s primary mission is not to maximise profits but to contribute to society by helping farmers secure sufficient capital to expand their agricultural activities, he said.

Thach added that ARDB’s low-interest lending policy and focus on social benefits demonstrate its commitment to supporting farmers and strengthening food security in Cambodia.

He said the bank applies the principle of financial sustainability to ensure it can operate continuously, rather than seeking tens of millions of dollars in profits like commercial banks.

This is reflected in its relatively low interest rates, with some general lending rates set at 4 percent per year. Loans for the rice sector carry interest rates ranging from 5 percent to 5.5 percent per year.

According to ARDB, Cambodia’s rice sector requires approximately $600 million in working capital annually to rice millers and exporters to use to collect paddy rice for processing and milling for exports.

However, financing remains a major constraint for the agricultural sector, with farmers facing challenges related to collateral requirements, short loan terms and the small size of loans offered by commercial banks.

To help address these challenges, ARDB plans to disburse more than $200 million annually to support Cambodia’s rice sector, with the aim of promoting rice production, processing and exports to international markets.

“Currently, many commercial banks and financial institutions are involved in financing the agricultural sector, which is an important factor in promoting production and increasing the competitiveness of Cambodian agricultural products,” Thach said.

He added that the financial support would also contribute to the government’s goal of promoting rice as a potential product and increasing exports to international markets.

Agriculture is one of the four pillars of Cambodia’s economy. The government has introduced a new strategic policy for agricultural development aimed at transforming agriculture from household-based farming into commercial farming and increasing farmers’ incomes through value-added products.

Published Date: September 1, 2026