Commerce Minister Cham Prasidh yesterday signed an agreement with Indonasia’s Trade Minister Gita Wirawan to export 100,000 tons of milled rice to Indonasia every year, officials said.
although details- such as when the export will begin and where the rice will be sourced- have yet to be negotiated, the deal is considered an important, the deal is considered an important step toward reaching the government’s target of exporting 1 million tons of milled rice by 2015, said Thon Virak, general director of Green Trade Co,.a state-owned rice exporter.
“The agreement was signed yesterday evening to export 100,000 tons of milled rice to Indonasia. The order should be easy to fill because most of what they need from us is white rice, which we produce, “he said.
If exported, the 100,000 tons represents more than half of all the mill rice Cambodia sent abroad during all last year, when 170,000 tons were exported.
Speaking of reporters on the sidelines of yesterday’s conference, Mr. Prasidh said that Indonasia would be buying the rice at market price and that the government would not consider a reduced rate.
“Cambodia has never offered a reduced price, so you have to deal with a price that alway fluctuating in the markets,” he said.
Although it is unclear what grade of rice would be exported, Indonasia currently needs to import an estimated 400,000 tons of milled rice each year in order to fill its reserve stocks, said Lim Bunheng, chairman of the Cambodian Rice Export Association.
“It would be great for us to enable my company and others to step up capacity and export more,”he said.
Still, Indonasia is expected to have a surplus of 5.5 million tons of milled rice this year and, therefore, it is uncertian how much demand there will be for imports.
Source accordance: Cambodia’s Daily