Everyday.com.kh
Translated from Khmer by Socheata
In the last few days, Phnom Penh city dwellers start to buy rice in a panic hoarding mode because they are concerned that the price of rice will significantly increase in the future. Recently, the price of rice has been steadily increasing without any end in sight. The Koh Santepheap newspaper reported that the price of rice has increased dramatically: one kilo of rice has been increasing by about 1,000 riels ($0.25) more than the normal going rate. The price increase stems from their purchase by foreign traders from Vietnam and Thailand who are coming in large drove to buy rice in Cambodia in an anarchic manner. Cambodian people are currently concerned about the increasing price of rice because the next crop season will not take place until 8 more months. According to claims made by rice sellers near the Phnom Penh train station, the price of rice has increased significantly beyond its normal price by more than 1,000 riels ($0.25) per kilo in the past 20 days. The price increase also instills concerns among Phnom Penh city dwellers who are starting to hoard them as well. People who normally would buy one bag of 50 kilos of rice, are now hoarding 2 to 3 bags at a time. Rice sellers said that a bag of No. 1 Phkar Mlis (Jasmin) rice which in the past cost between $18 to $20 only, now fetches $40 per bag.
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Alternatives Watch - 20iii08
MOUNTING INFLATION PRESSURE
The Cambodian economy is heading for unchartered water; and the government seems least prepared for the escapade. In his response to the Cambodian Confederation of Unions early this year, the prime minister cites three main factors that cause current inflation: rising petrol price, fall in pork imports, and devaluation of the US dollar. None of them, he claims, is in the government's control. Still, they have intensified their respective trend in the last quarter.
It is most likely the trends will persist. The current sub-prime crisis, the US recession, and credit crunch worldwide have sent almost daily the crude oil price to record highs, and pushed the US dollar to record lows; and there seems no end in sight. If the prime minister is right about the control, or the lack of it, then the inflation will get worse.
Additional pressure is forthcoming. Thailand - supplier of pigs to Cambodia, Lao, and Vietnam - plans to ban pig exports in a bid to contain rising domestic prices for pork. If this supply restriction is imposed on Cambodia, local pork prices will go through the roof at least in the short run. The ban may be a boon for Cambodian pig farmers, but it is uncertain if they have capacity to fill in the import slack. In the prime minister's reply, there is no government's commitment to increasing local pork productions eventhough he identifies pork shortage as one of the causes of the inflation.
Another potential inflationary pressure on Cambodia will be impact of an eventual demise of Thai King Bhumibol Adulyadej. He turned 80 last December and his health is reported to be "fragile". He is so revered by his subjects he has been able to avert political disasters many times. Sales of pink clothes in Thailand rocketed within hours after the King left hospital last November in a pink suit. There are days when some streets are a sea of pink which has now become a colour associated with the King's recovery. Many Thais pray he lives forever.
Some business analysts argue, however, that such passion and respect for the King will have adverse impact on Thai economy upon his death. They believe the mourning period may last up to a year, which will slow the local economy down significantly. In that case, the annual export to Cambodia of about $1.4 billion will undoubtedly be affected.
Unless the Cambodian government has some contingency plan to handle the supply shortage, it may not be able to control reverberations of a worsening inflation. An obvious panacea is to ensure alternative sources of supplies come at lower costs. Another is to re-distribute benefits of petrol smuggling on a wide and equitable basis, so that the inflation burden would be much lessened for the majority. The recent call by the government to cut down its oil consumption is a welcome move but hardly sufficient. It may have no influence over the price of crude oil, but it does control local distribution and consumption of fuel.
Ung Bun Ang
Quotable Quote:
"Nothing so weakens a government as persistent inflation."
J. K. Galbraith (1908-2006), Canadian-born U.S. economist.
The Affluent Society.
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PEOPLE REVOLUTION IS UNDERWAY WAKE UP! ALL YOUTH PICK UP ARMS GO UNDERGROUND AND UPROOT THIS CORRUPTED REGIME ENOUGH IS ENOUGH ! BY THE WAY THE HUN SEN'S FLEA ON THIS BOARD NEED NOT REPLY TO MY MESSAGE HERE SINCE WE ALL NOT GONNA READ YOUR FLEA'S MESSAGE ANYWAY!
Yes brothers and sisters the poor people cannot take anymore with the cost of living, bravo 7:04am we all support your call! pick up arms go underground, ambush the military convoy , collect arms and fight ti' final victory. Uproot this stupid regime! Viva la revolution du cambodge is underway!
This inflation just like during lon Nol regime! the sign of instability of the country ...gap is so big between rich and poor,,, just like lon nol time,,, We all can smell the revolution underway!
Overthrow thru revolution this corrupted regime! I agreed!
7:04 AM
We never condoned violence in any shape or form; violence is ONLY beget violence. Therefore, cease and decease your ignorant mindset of your small-minded brain.
Ah gorillas!
That is okay, mate (12:06), let them do it. That way, we will have less people to feed afterward.
Why are the Viet rice fields still green? Cause they plant 2 and sometimes 3 crops a year. Why are Cambodian rice fields empty ?
It is not panic buying. It is a rational, economic choice by people who can think and have the opportunity to act. Food is going to get more expensive. Oil production is peaking while demand is growing particularly in China. The Chinese can afford more food and oil so they are buying it up. And it is going to get worse. No doubt the Vietnamese or the Thai's will make a good scapegoat.
In Cambodia there is no preparation for this. The spoilt brats of rich are running around in Hummers, wanting to get an appartment in Gold Tower 42, listening to Karaoke wishing they were in the USA while not having an education to work as a cleaner there.
Meanwhile Peak Oil and Pandemic Flu are on the way. There will be not enough oil or electricity to run the Hummers or Gold Tower 42 in 10 years time. Why do you think the Americans are in Iraq and the Chinese in Sudan. The new oil find in Cambodia will run the Chinese economy for three days, buy a few more Hummers and a couple of nights Karaoke and then you will be back to oxcarts.
It is so sad.
http://www.energybulletin.net/primer.php
The Cambodian field need irrigation works, 3:43. Without canal, nothing will grow there except for cactus.
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