The Royal Government of Cambodia (RGC) released $40 million budget to intervene in falling rice prices during the ongoing paddy harvest season. The announcement came amid the dropping paddy prices which is as low as 600 riels per kilogramme in some provinces. This news comes at a time when Japan is struggling with soaring rice prices that have climbed to near-record highs despite government interventions. In this context, Prime Minister Hun Manet wrote on his social media that the RGC has planned to release an additional $40 million to stabilise paddy prices during the harvest season in late this year and early next year through the Agricultural and Rural Development Bank (ARDB).
According to an ARDB press release issued on November 8, the measure is aimed at protecting farmers’ livelihoods and ensure price stability amid global and domestic pressures contributing to the ongoing price slump. The funds will be released through ARDB’s revolving credit programme to rice mills that partner with the Ministry of Agriculture, Forestry and Fisheries (MAFF) to purchase rice from farmers at reasonable prices. The decline in paddy prices is influenced by international market trends, and as the global rice prices have fallen due to surplus stocks from 2024 continuing to circulate in 2025, which reduced overall demand.
Rice Production Continues to Rise
Further the statement also said that though the international demand remains weak, rice production in Cambodia and other major rice producing countries continues to rise, intensifying market competition and further pressuring farm-gate prices across the region. Notably, this year favourable weather conditions followed by govt. support has resulted into record harvest.
Govt. Intervention Followed by Concerns of Farmers
Govt. intervention in Cambodia is followed by growing concerns from farmers who alleged that middlemen were manipulating market prices and exploiting the sharp fall in farm-gate paddy prices. Under the Special Financing Program, ARDB has been extending low-interest loans to eligible rice millers and rice exporters to secure and store paddy, helping prevent price collapses during the peak harvest period.
In this context, the latest $40 million release supplements earlier government efforts aimed at supporting agricultural product collection, expanding markets and stabilising agricultural prices. The move signalled the Royal Government’s ongoing commitment to supporting the agricultural sector as a pillar of rural income and national economic growth, particularly amid global market volatility. For the unversed, it is worth to note that rice prices in Cambodia range between 3,000 and 5,000 riels per kilogramme, equivalent to about $0.75 to $1.25 in the market. However, rice prices have plunged to around 600 riels, or about $0.15 at the production points.
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