Cambodia Rice Exports Near 1 Million MT Amid Global Demand

Rice exports of Cambodia will exceed 1 million metric tons in 2026. Now, this is expectation is led by market dynamics, government financing initiatives, and increasing demand from China, Europe, and the Philippines, as told by the Oknha Lay Chhun Hour, President of the Cambodia Rice Federation.

The country exported approximately 4,70,000 metric tons of rice between January and April of this year. Also, it remains on track to achieve its annual export target of 1 million metric tons.

What does the president say about Cambodia rice exports?

Adding further regarding the country’s rice exports, he said: “The country has nearly reached its goal of exporting 1 million metric tons of rice, and this year we expect exports to surpass that level”. Notably, the 1 million mt target of rice exports was established in August 2010 under the leadership of former Prime Minister Samdech Techo Hun Sen. Also, in the first four months of this year, rice exports from Cambodia increased around 66% year over year. It has been supported by robust shipments to Europe, China and regional Asian markets.

According to Chhun Hour, the strategy of federation emphasises three pillars:

1. Market diversification
2. Financial facilitation
3. Brand development

China- Significant rice trade partner

Furthermore, he cited that China remains one of the significant rice trade partners of the Federation, as Cambodia exports rice to China. It is also looking to diversify exports by expanding into new markets such as the Middle East, other Asian markets, West Africa, Oceania and the US. “We emphasise the middle-to high-end segment and on leveraging Cambodia’s natural advantage in premium rice varieties”, said Chhun Hour. At the same time, he underscored the strong demand for Cambodian premium fragrant rice varieties such as SKO, SRO and Jasmine rice from Europe. On the contrary, the rise in the demand for OM 5451 rice from China and the Philippines has also been observed in the market. He mentioned the prices of OM451, which were around $450/mt a couple of days ago and are presently at $500/mt.

Govt.’s emergency funding programs to support millers

In addition to this, he asserted that the Cambodian government has launched some emergency funding programs in support of millers and paddy prices during harvest seasons. The low-interest funding is facilitated through the Ministry of Economy and Finance. It enables millers to purchase paddy directly from farmers and boost the warehouse stocks. The president also quoted: “The government released emergency funds this year to support the farmers and millers after the fall of paddy prices earlier in this year”. Not only this, the federation coordinated with authorities to reduce the production costs, such as electricity and logistics expenses. Since the reduced production costs would enhance the competitiveness against suppliers, including Thailand, Vietnam and India. The government has distributed the funding through the Agriculture and Rural Development Bank and Credit Guarantee schemes to support the working capital requirements of millers. Subsequently, Chhun Hour revealed that Cambodian rice prices are generally higher than those of competing Asian origins. But he highlighted that the country is designing a value-driven export strategy instead of giving stress to volume.

Broadly, Cambodia exports rice to various countries around the world. Not only this, but rice cultivation also serves as a primary source of income for farmers in the country. Undoubtedly, in recent years, the country has achieved new milestones in rice exports. In fact, it continuously works towards expanding its export volume.