The situation of the price of goods in Cambodia

Price of gasoline at a Total station in Phnom Penh (Photo: Ouk Savborey, RFA)

Thursday, April 24, 2008
By Ouk Savborey
Radio Free Asia
Translated from Khmer by Socheata

The price of foods and gasoline in Cambodia remained stable in some provinces, but it has increase in some other cities and provinces.

Ms. Chak Ieng, a pork meat seller in O’Russei market, indicated that the price of one kilo of pork meat increased to more than 20,000 riels (~$5) before the Cambodian New Year. Following the New Year celebration, the price of one kilo of pork dropped to 19,000 riels ($4.75) because the government allowed the import of live pigs, following a short import ban.

Ms. Chak Ieng indicated that the price of chicken is about the same as the price of pork, but the price of beef increased to more then 30,000 riels (~$7.50) per kilo: “It’s because Samdach Hun Sen made a lot of noise, that’s why the price is stable, otherwise, it would be just like beef also, it keeps on increasing nonstop.”

Merchants along various markets in Phnom Penh indicated that dry goods, like rice, soy beans, peanuts, mung beans, corn, lotus seeds, etc… saw their price increased to more than it was before the New Year, the exception being the dry season rice where the price of a kilo lowered from 2,500 riels to 2,200 riels ($0.63 to $0.55).

Song Kheng indicated that the price of cereal increased because of the low supply within various provinces, and the price of peanuts increased from 6,000 riels ($1.50) to 6,500 riels ($1.63).

Sinuon, a seller at the Poipet market, indicated that the price of beef and pork lowered by 10 Baths per kilo (about 1,200 riels ~$0.30): “A few days back, one kilo was 18,000 riels ($4.50), so the price was reduced by 10 Baths.”

Lok Lin, an owner of a rice mill in Thmor Puok district, indicated that the price of rice is stable: “For one bé, i.e. 50 kilos of rice, it cost 1,200 Baths (~153,500 riels or ~$38.31) … I don’t know how much it is in Khmer riels, here my prices are in Baths only.”

In Kampong Cham and Kratie provinces, local villagers claimed that the price of rice, fish, meat, vegetables did not rise after the Cambodian New Year.

Along the southwest provinces, after the New Year, the price of rice decreased, but the price of fish, meat, vegetables increased somewhat. In Phnom Penh, the price of gasoline, diesel at major gas stations, such as Caltex, Total, PTT and Sokimex, is now increased by 200 riels ($0.05) per liter.

A taxi driver from Svay Rieng province indicated that the price of gasoline in Bavet is 4,000 riels ($1.00) per liter, but it is only 3,800 riels ($0.95) only in the provincial center.

On Wednesday 02 April, Prime minister Hun Sen indicated that there are 4 problems that cause inflation: (1) the price increase of oil on the international market, (2) the lower exchange rate of the US dollars, (3) the necessity to increasing food production, and (4) the use of cereal for bio-fuel production.

Hun Sen said that his government resolved the inflation problem by increasing the salary of factory workers and civil servants, by subsidizing the price of electricity, and by the sale of rice at low cost in various markets in Phnom Penh city.

It should be noted that, after the New Year celebration, government workers in charge of low cost state rice sale, indicated that the government stopped selling this rice on the market.

Inflation Hits Cambodia [-Annual food inflation: 24%, one of the highest in SE Asia]

By Rory Byrne, VOA
Phnom Penh
18 April 2008

"Cambodia's annualized rate of food inflation hit 24 percent last month, the highest in almost a decade, and one of the highest in Southeast Asia"
-----
"...most poor rice farmers in Cambodia will run out of their remaining rice stocks by June at which point they will have to buy rice at the market. That means that the worst effects of high inflation on the poor may be yet to come"

As in other developing countries from Egypt to Haiti, soaring inflation has recently emerged as a threat to Cambodia's hard won social stability. While wages have remained low, the price of rice and other staples have skyrocketed pushing millions deeper into poverty. While the Cambodian government says it is doing its best to curb the worst effects of inflation, opposition politicians say it is not doing enough. Rory Byrne reports for VOA from Phnom Penh.

On the face of it, Cambodia's economy is doing well.

Phnom Penh, the nation's capital, is undergoing a building boom which is changing the face of the city.

Expensive new cars fill the city's streets as a resurgent middle class has emerged to take advantage of new business opportunities.

But while some are prospering, many of the country's poorest people are slipping deeper into poverty. The reason is inflation.

While the incomes of the poor have remained constant, the price of food and other staples have risen dramatically.

Cambodia's annualized rate of food inflation hit 24 percent last month, the highest in almost a decade, and one of the highest in Southeast Asia.

The price of staple goods has fluctuated week by week. Prices for pork, chicken, beef, and prahok - a pungent fish paste that is the main source of protein for millions of poor Cambodians - have all jumped.

"Last month I sold a kilo of prahok for 60 cents but today it costs a $1.50,” the market keeper said.

"Last week I sold beef for $1.25, but today it costs $2.00,” the market keeper added. "One kilo of dried fish now costs $6.00. Last week it was $5.00.”

The prices of non food items -- such as gasoline and cooking gas -- have also increased, adding to the country's inflation woes.

But it is the high cost of rice that is causing the most concern, according to the World Food Program which feeds almost a million poor Cambodians.

Thomas Keusters, the WFP's Country Representative in Cambodia, says the high cost of rice on the world market has led many growers to export their crop, driving up the domestic cost of the grain.

"There are not that many big exporters of rice so obviously those who are producing rice in this country see a benefit of seeing the rice going out of the country,” Keusters said. “Secondly, in general I think there has been an increase in the cost of producing rice, so by definition, people are producing, or selling rice more expensively."

He adds with money running out, the WFP is in danger of running out of its remaining rice reserves in a matter of weeks: "Cambodia's rural poor, who make up over 80 percent of the population, are particularly at risk from inflation."

Many are poor rice farmers who only grow enough rice to feed themselves and their families for half the year

For the rest of the year they rely on handouts from the WFP, or they harvest wild plants and fruits from the forest which they sell to buy rice. High prices at the market mean that they cannot buy enough to feed their families.

Chanmom lives with her family in a small village in Kompong Speu province north of Phnom Penh.

"I sell wild fruit and bamboo to make a living. That is all I can do. If there is no bamboo or fruit I have nothing. That's all I can do to stay alive. I don't have any cows or rice fields only this old house. Now it is very difficult for me to feed my family because the price of food and rice is increasing," she said.

With a general election in July, inflation has become a highly politicized issue in Cambodia. Marchers in this recent demonstration organized by the main opposition party in Phnom Penh accused the government of not doing enough to curb soaring prices.

Sam Rainsy is the leader of the main opposition Sam Rainsy Party. "We want the government to take appropriate measures to stop or to curb inflation. And we want the government to increase salaries for civil servants, wages for workers," Rainsy said.

For its part, the government says it is doing what it can. On the orders of Prime Minister Hun Sen, rice exports have been banned for two months while tons of surplus rice were released onto the market at reduced prices.

A ban on pig imports was also lifted in a bid to lower pork prices.

While these measures have had some success, experts expect that, as in the rest of the world, prices here will continue to rise over the long term. And that - the World Food Program says - could have damaging long term consequences,” he said.

"A lot of people who are now on the verge of surviving are going to face even more difficulties to make ends meet and really survive. This is condemning possibly a whole lot of generations because people will not go to school, people will not go into productive activities, because they will really be constrained by their search for food," Keusters said.

Experts say that most poor rice farmers in Cambodia will run out of their remaining rice stocks by June at which point they will have to buy rice at the market. That means that the worst effects of high inflation on the poor may be yet to come.

Rice Exports Halted Amid Price Worries

A Cambodian vendor, left, counts U.S. currency after selling rice at a roadside store in Phnom Penh, Cambodia, Wednesday, March 26, 2008. Cambodia's prime minister ordered a ban on rice export Wednesday to neighboring Thailand and Vietnam in a bid to curb rising price on the country's most important staple on the domestic market. (AP Photo/Heng Sinith)
A Cambodian vendor cleans her rice as she prepares it to sell at a roadside store in Phnom Penh, Cambodia, Wednesday, March 26, 2008. Cambodia's prime minister ordered a ban on rice export Wednesday to neighboring Thailand and Vietnam in a bid to curb rising price on the country's most important staple on the domestic market. (AP Photo/Heng Sinith)

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
26 March 2008

The Ministry of Commerce will halt the export of rice for two months, following a price spike nearly nationwide that has left many Cambodians worried.

Minister of Commerce Cham Prasidh issued a statement late Wednesday declaring a halt to the export.

The ministry earlier in the day provided 200 tons of state-owned rice to sell to Phnom Penh, Siem Reap and Kampong Thom province, which have been hardest hit by high prices.

High-quality rice has climbed from 3,000 riel to 4,500 riel per kilogram in the capital. Poor-quality rice has gone from 1,800 riel to 2,500 riel per kilogram.

For Cambodians below the poverty line, 1 kilogram of rice per day is all they can afford, leaving them lacking in other food.

"A salary of only 400,000 riel per month is not enough for living, considering the price of rice is rising," said Phrum Phearun, a high school teacher in Phnom Penh. "I cannot teach well, because my mind sticks to a concern over the price of rice."

In Phnom Penh Wednesday, the Commerce Ministry sold 20 tons of rice directly to consumers at 1,800 riel per kilogram.

In a public speech Tuesday, Hun Sen sought to quell rumors of a rice shortage, which has led to a price increase. Hun Sen said at an opening ceremony for a pagoda in Kampong Thom province that the price hike was due to an increase in international demand.

The Philippines and Malaysia are considering importing rice from Cambodia, and Thailand and Vietnam already buy rice from Cambodia, he said.

The rising price of oil worldwide can affect the cost of rice, he added, blaming "saboteurs" for driving up the market price, as well.

The rising price has made farmers happy, but Kong Chandararoth, an economist and director of the Cambodian Institute for Development Studies, said the unusual price rise can lead to inflation and a decrease in investment.

This can disrupt the economic system, he warned.

Cambodian PM appeals for calm over inflation [-Independent economist Prom Tola: Rising rice prices were partly due to over-exporting]

March 26, 2008

As accelerating inflation puts more and more people at serious risk, Prime Minister Hun Sen has appealed to Cambodians to be calm over increasing goods prices, especially that of rice, local media reported Wednesday.

Soaring rice prices are due to dishonest merchants inflating their profits, Hun Sen was quoted by the Mekong Times newspaper assaying.

Hun Sen ordered an investigation of rice merchants in Kandal, Kompong Thom and Kompong Cham provinces and asked authorities at all levels and rice stall owners to report any irregularities, the newspaper said.

The premier rejected rumors of a black market for rice in Cambodia, claiming that inflation is due to rising oil prices.

To help Cambodian rice reach local markets, Hun Sen ordered the Ministry of Commerce to put all rice mills across the country into operation.

Meanwhile, Prom Tola, an independent economic advisor, said rising rice prices were partly due to over-exporting.

In 2007, Cambodia produced 6.4 million tons of rice nationwide, a surplus of around two million tons, according to official statistics.

Source: Xinhua

Rong Chhun asks the government to control the price of goods

Friday, March 21, 2008
Everyday.com.kh
Translated from Khmer by Socheata

In the recent months, because of the price of gasoline keeps on increasing, other goods on the market also saw a price increase, and the price keeps going up with no end in sight. Rong Chhun, President of the Cambodia Independent Teachers’ Association (CITA), issued a statement on 19 March 2008, calling on the government to take measure to control the price increase of goods in Cambodia. In his statement, Rong Chhun raised the fact that the gasoline price has now increased to 4,900 riels (~$1.22) per liter. Rong Chhun said in his statement also that the price increase of goods will create unrest and disturbance in the society and the population will lose their peace of mind, this is the reason why the government should resolve this issue urgently. Up until now, no government official has yet to reply on Rong Chhun’s call. According to RFA, the price of 1 liter of gasoline in Washington DC is only $0.86, i.e. 3,435 riels only.

Chea Mony: Hun Sen has until Friday to reply to garment workers’ request for $5 monthly salary raise

Thursday, March 20, 2008
Everyday.com.kh
Translated from Khmer by Socheata

The President of the Free Trade Union of Workers in the Kingdom of Cambodia (FTUWKC) said that he will give time for Hun Sen until Friday to answer about the recent request made by his trade union to the factory owners to raise the monthly salary of garment workers by $5, otherwise, a major strike will take place and it will affect several hundreds factories. Chea Mony, FTUWKC President, told The Cambodia Daily on Tuesday, that if there will be no reply back, garment workers from 140 factories will start their strike, and he stressed that this is not a joke. On 14 March 2008, Chea Mony sent a letter to Prime minister Hun Sen asking him to increase the salary of garment workers. He explained that the salary raise is needed because of the increase in price of goods, the increase of gasoline price, the increase of rent and price of medicines. All these price increases affect the livelihood of the workers all over the country.

China steps in to curb inflation

January 12, 2008

China's cabinet says it will temporarily intervene in the market to curb rampant food and fuel price rises.

Retailers and producers will face heavy fines if they increase the price of basic necessities, the government says.

Food prices climbed more than 18% in November, while the price of pork jumped by more than 50%.

Inflation has traditionally been associated with civil unrest in China, and correspondents say the intervention shows the government is very concerned.

During the past 20 years, the Chinese administration has largely abandoned price controls, as the free market took hold across the country.

The price of basic essentials has increased hugely during this time, and families on low incomes - numbered in their hundreds of millions in China - currently spend between 30% and 50% of their income on food for the table.

According to the BBC correspondent in Shanghai, Quentin Sommerville, rising prices were the main concern among Chinese households last year, outranking worries over corruption and the growing wealth gap.

But economists are skeptical that the new rules will work, as price controls often lead to empty shelves.

And the UN's food aid agency is warning that another measure taken by China - restricting the exports of rice and other staples - could have serious effects in the region.

The World Food Program (WFP) says China's move, which followed similar restrictions imposed by India and Vietnam, could help to cause acute food shortages.

The WFP says North Korea, East Timor, Afghanistan, Bangladesh and Cambodia are particularly at risk.

Source: BBC

Khmer Intelligence News - 27 October 2007

27 October 2007

Controversial voter lists published today (1)

Today the National Election Committee (NEC) started to publish preliminary voter lists for Cambodia's 1,621 communes, totaling 8,027,706 voters for the whole country, a net increase of 228,335 eligible voters over last year (893,131 names added; 664,796 names deleted). However, the tentative lists which were posted today at all the country's commune offices, are being contested by the opposition Sam Rainsy Party (SRP). According to Sam Rainsy, who held a press conference today in Phnom Penh, the voter register has been manipulated nationwide by the ruling Cambodian People's Party (CPP), through the NEC, so as to secure election victory for the CPP before even voting day (27 July 2008):

• Tens of thousands of names have been artificially added to inflate voter lists (ghost voters whose names will be fraudulently used by the CPP on voting day, such as the 15,000 names contested by the SRP in Poipet commune alone).
• Tens of thousands of (real) citizens who wanted to register as voters, were not able to do so, especially non-CPP supporters, because of lack of information, administrative harassment and organized confusion.
• CPP-controlled commune councils have arbitrarily deleted 573,981 names (out of the 664,796 names mentioned above) without producing evidence that the concerned persons are really dead or have really and permanently moved away from their commune. A significant portion of the targeted names appear to be those of non-CPP voters, who are therefore unfairly disenfranchised.
• Whereas citizens who are disenfranchised are all Cambodian nationals, tens of thousands of foreign nationals (newly arrived immigrants with no voting right) continue to be included in the voter lists despite countless complaints lodged by the opposition.

Acceleration of inflation (2)

Retail prices have sharply increased in Cambodia over the last three months. The following are today prices for staples sold at big markets in Phnom Penh (compared to their levels in July this year):

• Rice (1 kg, average quality): 1,800 Riels (versus 1,500 Riels): + 20%
• River fish (1 kg, trei ros): 17,000 Riels (versus 13,000 Riels): + 30%
• Pork (1 kg, breast): 12,000 Riels (versus 10,000 Riels): + 20%
• Pork (1 kg, pure meat): 15,000 Riels (versus 12,000 Riels): + 25%
• Beef (1kg): 17,000 Riels (versus 13,000 Riels): + 30%
• Cabbage (1 kg): 3,000 Riels (versus 2,500 Riels): + 20%.

This acceleration of inflation is largely due to a recent and uncontrolled increase in the emission of bank notes (paper money) by the Central Bank of Cambodia to pay for the CPP's recent and ongoing election campaigns (cash donations).

Hun Sen's son to run for MP (2)

Hun Manet

Hun Sen's son Hun Manet is to run at the July 2008 elections for a Member of Parliament seat in Siem Reap province where the CPP now controls four seats out of six. Commerce Minister Cham Prasidh, currently a prominent MP for Siem Reap, will leave that province to become the CPP candidate for Kep municipality, which is a one-seat constituency.

Attempt to cover up corruption scandal (2)

Recently, there have been attempts to bribe former employees of the Cambodian Center for Human Rights (CCHR) to convince them to drop the corruption lawsuit that they have filed against former CCHR President Kem Sokha, who is now the President of the Human Rights Party (HRP). However, the 16 former employees, who have formed a Truth Committee to denounce Kem Sokha's corruption, insist that the Court proceeds with their lawsuit. Whether the Court will actually move on with the lawsuit or not, is a political decision to be made by the ruling CPP (see KI, 27 September 2007: "Hun Sen holds Kem Sokha hostage").

Latest statement (October 15) by the Truth Committee by clicking here.

Cambodian Senator writes to French Senate about Kampuchea Krom (1)

SRP Senator and former Foreign Affairs Minister Kong Korm, who is presently in France with a Cambodian parliamentary delegation at the invitation of the French Senate, wrote this week to French Senate President Christian Poncelet about Kampuchea Krom (former Khmer territories forming now the Southern part of Vietnam). Kong Korm asks the French Government to reexamine a law adopted by the French National Assembly in 1949 (Law # 49-733) granting sovereignty over Kampuchea Krom to Vietnam.

See Kong Korm's letter in French by clicking here.

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