Hun Sen: Rice Cartel Could Counter OPEC Prices
By Yun Samean and Erik Wasson
THE CAMBODIA DAILY
Prime Minister Hun Sen said Wednesday that a proposed cartel if regional rice-producing nations could enhance the Cambodian economy and help lower international gas prices.
Hun Sen said that during his Monday meeting with Vietnamese Prime Minister Nguyen Tan Dung, the two leaders agreed to work to establish a regional association to set the price of exported rice.
"We want the countries in the Mekong River region to create a rice export association," Hun Sen said during a speech in Battambang province that was broadcast on Apsara Radio.
Vietnam and Thailand together export 10 million tons of rice yearly and Cambodia exports about one million tons, he said.
"There will be 13 million tons exported and it will cover 50 percent of the [global] rice market," he said.
This combined strength would give the participating nations leverage to demand lower oil prices from the Organization of Petroleum Exporting Countries, he said.
"OPEC has oil but they don't have rice," Hun Sen said. "We can bargain the price. If you want cheaper rice, you must lower the oil price."
Kang Chandararot, director of the Cambodian Institute of Development Study, said forming a cartel would be a very positive step for Cambodia because it could increase farmers' incomes.
But cartels are typically problematic for participants because they are subject to secret undercutting of the set-price, but Kang Chandararot said he hoped cheating could be curbed.
Phou Puy, president of the Cambodian Rice Millers Association. welcomed Hun Sen's proposal. He said that local export spot prices of rice, averaging $235 to $240 per ton, are consistent with the international market.
Hun Sen said that during his Monday meeting with Vietnamese Prime Minister Nguyen Tan Dung, the two leaders agreed to work to establish a regional association to set the price of exported rice.
"We want the countries in the Mekong River region to create a rice export association," Hun Sen said during a speech in Battambang province that was broadcast on Apsara Radio.
Vietnam and Thailand together export 10 million tons of rice yearly and Cambodia exports about one million tons, he said.
"There will be 13 million tons exported and it will cover 50 percent of the [global] rice market," he said.
This combined strength would give the participating nations leverage to demand lower oil prices from the Organization of Petroleum Exporting Countries, he said.
"OPEC has oil but they don't have rice," Hun Sen said. "We can bargain the price. If you want cheaper rice, you must lower the oil price."
Kang Chandararot, director of the Cambodian Institute of Development Study, said forming a cartel would be a very positive step for Cambodia because it could increase farmers' incomes.
But cartels are typically problematic for participants because they are subject to secret undercutting of the set-price, but Kang Chandararot said he hoped cheating could be curbed.
Phou Puy, president of the Cambodian Rice Millers Association. welcomed Hun Sen's proposal. He said that local export spot prices of rice, averaging $235 to $240 per ton, are consistent with the international market.
5 comments:
This IIU graduate is really good at Irish jokes.
SiS
So If this is to be in place. how much of that money will go to the farmers?
Rice cartel or Reginal Rice Market is going to be zoned. This will be a big impact on Cambodian farmers with positive and negative. It is going to be a big game between Vietnam and middlemen exporters.
Every year Vietnam and Thailand are always screaming for Rice to fill their stomach, claiming that they didn't enough rice to feed their people. But Thailand and Vietnam imported Rice from Cambodia with cheap prices and Exported them to Canada,Australia, United State, France and all countries around the World. They exported Rice with a very high price to all countries around the World, but they bought it very cheap from Cambodia farmers.
Thailand and Vietnam always said they didn't have Rice to feed their people and demanded Cambodia to sell them Rice in cheap price while Cambodian government is always so nice to the neighbors to be fooled.
Thailand and Vietnam exported Rice 10 Million tons yearly because they didn't have rice to eat, but Cambodia could only afford to export only 1 Million ton yearly.
If the regional cartel be created they could easily manipulated the price of rice. People who suffer will be the farmers of Cambodia. I have seen rice being sold in Canada and US with very high price, and rice were imported from Thailand and Vietnam.
I hope Cambodian government will take carefully attention in this matters with Thailand and Vietnam.
Reporting from canada, political analyst.
THis crasy lop lop Prime Minister doesn't understand USA is the number rice exporter and then Australia could be the second exporter if the rice price is going up. It is not Cambodia who dream of raising Rice Price. He must commit suicide and reborn again so that he can go the normal school.
There should be an INDOCHINO-THAI RICE ASSOCIATION??????
Where dose that 1 million tons of Khmer rice go?
In Europe, I see only Thai rice. I have never seen any stamps of Khmer rice. No body know if we ask for Khmer rice.
Post a Comment