Rice for sale in Phnom Penh. The rice market in Cambodia has turned from shortage to glut, with thousands of tonnes left unsold. (Photo by: Tracey Shelton)Tuesday, 25 November 2008
Written by THET SAMBATH
The Phnom Penh Post
Large stockpiles of rice are left in limbo and may be sold for losses following decreases in commodity prices, with millers blaming a government export ban
OFFICIALS in Battambang and Banteay Meanchey provinces said Wednesday that declining rice prices and the arrival of a new harvest season have left thousands of tonnes of rice sitting idle in storage mills. If the rice is not sold soon, it may deteriorate and have to be sold at fire-sale prices, millers warn.
"More than 20,000 tonnes of husk rice are still being stored in Banteay Meanchey and Battambang provinces because prices have dropped since earlier this month," said Song Hong, president of Battambang's Rice Millers Association.
"They couldn't sell it earlier, when the price was higher. Now, prices have dropped and the [new] harvest is arriving," he added.
Some millers have blamed the government for restricting rice exports and creating a backlog of rice stores.
Prime Minister Hun Sen on March 26 slapped a two-month ban on all rice exports - particularly to neighbouring Thailand and Vietnam - in an effort to slow rising domestic prices.
While the ban was lifted in May, rice stockpiled during the period continues to sit unsold.
The price of milled rice hit US$585 per tonne in October, Song Hong said, but has since dropped to $450, leaving mills unable to offload excess stores at a profit. "They can't sell them at a good price on the international market because the value has dropped there as well, and there is not as much demand," he said.
"They are now trying to sell in small parcels to businessmen who want to export to Vietnam," he said.
Heng Bunhor, director of Banteay Meanchey's provincial Agriculture Department, said the stockpiles are unusual for this time of year. "Millers have usually sold all their rice before November, when the new harvest comes and prices drop," he said.
Government ban
The March temporary ban was imposed "to guarantee food security for Cambodia", Hun Sen said at the time as prices rose amid fears of shortages.
A rice miller in Battambang who requested anonymity blamed government interference for the overstocks.
"We are not happy with the drop in rice prices," the miller said. "It is the government's fault ... for banning rice sales overseas when prices were good. We are businessmen. We do not care about politics. By the time we were allowed to export, prices were down."
Tes Ethda, president of the National Rice Millers Association, said he understood the need to sell at higher prices, but denied that the government was to blame.
"They can't blame the government for banning exports overseas. Every country has the right to do this in order to maintain food security and national stability," he said.
OFFICIALS in Battambang and Banteay Meanchey provinces said Wednesday that declining rice prices and the arrival of a new harvest season have left thousands of tonnes of rice sitting idle in storage mills. If the rice is not sold soon, it may deteriorate and have to be sold at fire-sale prices, millers warn.
"More than 20,000 tonnes of husk rice are still being stored in Banteay Meanchey and Battambang provinces because prices have dropped since earlier this month," said Song Hong, president of Battambang's Rice Millers Association.
"They couldn't sell it earlier, when the price was higher. Now, prices have dropped and the [new] harvest is arriving," he added.
Some millers have blamed the government for restricting rice exports and creating a backlog of rice stores.
Prime Minister Hun Sen on March 26 slapped a two-month ban on all rice exports - particularly to neighbouring Thailand and Vietnam - in an effort to slow rising domestic prices.
While the ban was lifted in May, rice stockpiled during the period continues to sit unsold.
The price of milled rice hit US$585 per tonne in October, Song Hong said, but has since dropped to $450, leaving mills unable to offload excess stores at a profit. "They can't sell them at a good price on the international market because the value has dropped there as well, and there is not as much demand," he said.
"They are now trying to sell in small parcels to businessmen who want to export to Vietnam," he said.
Heng Bunhor, director of Banteay Meanchey's provincial Agriculture Department, said the stockpiles are unusual for this time of year. "Millers have usually sold all their rice before November, when the new harvest comes and prices drop," he said.
Government ban
The March temporary ban was imposed "to guarantee food security for Cambodia", Hun Sen said at the time as prices rose amid fears of shortages.
A rice miller in Battambang who requested anonymity blamed government interference for the overstocks.
"We are not happy with the drop in rice prices," the miller said. "It is the government's fault ... for banning rice sales overseas when prices were good. We are businessmen. We do not care about politics. By the time we were allowed to export, prices were down."
Tes Ethda, president of the National Rice Millers Association, said he understood the need to sell at higher prices, but denied that the government was to blame.
"They can't blame the government for banning exports overseas. Every country has the right to do this in order to maintain food security and national stability," he said.
6 comments:
Somehow I feel it's right to blame Hun Sen government for high commodity prices due to its inability to approriately address the issue of high gasoline price, but not for export control case. I understand the sellers' need to sell rice at the high price in respone to high cost of energy consumption and increasing food prices, but the export control is not the root of the problem to be blamed.
Yuon tecnique try to twist the rice price at city so cheepest in season havest .and make to khmer farmer will be no chance must be sale rice at the field by cheeper to yuon vender.khmer farmer still live under pressure and poor and poor.,
what is this, complain when there's a shortage and still complaining when there's a surplus or glut? it's time to change the way people in cambodia are doing business. with surplus, you can make rice into flour or other food items or research for more markets out there as the world is HUGE and full of hungry mouths to feeds the cambodian rice. this is why it is important to learn about the world and know what to do in time like this. learning should never stop, it should be a life longe continuing process. i think all cambodia needs is a little change of thinking and doing business and awareness of the bigger world out there.
1:34 AM You have made some good point. But the Khmer leaders are still pretty young in their experience in running the country.
Besides, most of them are corrupt and therefore they become shortsighted and they lack vision in doing business. Their mindset is mostly stuck in "daily family affair" much like ordinary low educated peasants.
The bottom line, the present Khmer leaders, sad to say, are still ignorant in all fields of business but quite wise in corrupt plans and activities.
I still despise these leaders of nepotism-the corrupt Khmer leaders from the jungle.
It is a bit funny for me to hear such thing. Gov't is knowing on how to ban but did not know how to keep businessman surviving. They must have in their mind on the casualties after banning.
give me a break, leaders in cambodia aren't that dumb or stupid; they just have many tricks and play game, too, you know! otherwise, they would be rich and would get to be a leader. think about it, one has got to be smart and clever to be rich and a leader. so, why wasting breath calling them stupid! go figure!
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