Special Programme of Royal Government on market intervention of buying rice, corn, and other Agricultural products
In responding real circumstance regarding the decrease price of fragrant rice in September 2016, Samdech Akka Moha Sena Padei Techo HUN SEN, the prime minister of the Royal Government of Cambodia, paid great attention on farmer’s worries and hardships been affected by fragrant rice price decrease. In addressing this problem, Samdech Akka Moha Sena Padei Techo HUN SEN has decided to launch a “special program of the Royal Government” with a total budget of 50 million USD, which is from national budget of 43 million USD and ARDB budget of 27 million USD.
This special program has main objective of supporting the Government’s special financing program by providing finance as working capital to target customer as rice collector fragrant rice, neang khon rice, corn or other agricultural products in order to stabilize rice price in the country as well to increase inventory for supplying local processing and export. Agricultural and Rural Development Bank, as the operator of the program, has provided finances as working capital by accepting rice inventory and/or debt-guarantee certificate from buyer as collateral in order to buy fragrant rice and jasmine rice and phkar romduol rice from farmer with suitable price. This program has helped stabilize price rice for farmer.
Particularly, this program has contributed to solve problem for rice miller in some provinces due to the lack of capital. As this problem, in responding to the decline rice price, Agricultural and Rural Development bank, which is policy bank to implement the
Government’s policy in Agriculture and Rural Economy, has continued its mission in promoting and expending its financing activities by providing loan to all stakeholders of agricultural value chain, in which make a market linkage from farmer as producer and collector that can help stabilize rice price for farmers.