InfoQuest, (Sept. 4, 2019) -- Mr. Jirawuth Suwanna-arj, director of the Department of International Trade Promotion (DITP)'s office in Phnom Penh, Cambodia, said that currently Cambodia has promoted the planting of organic fragrant jasmine rice, and many rice exporters are focusing more on the production and export of organic rice. Amru Rice is a large rice exporter in Cambodia and also the first that identified the export opportunity of organic rice in the country. Reckoning that organic rice brings more profits, the company lost no time to adjust its market plan to boost the export of organic rice. It has invested in the production lines of rice mill and rice baking mill, and rice packing machine meeting EU and American standards.
The majority of organic rice in Cambodia is planted in Preah Vihear Province and Banteay Meanchey in the form of contract farming. Rice is planted and produced after rice exporters and farmers signing contracts. As the initiator of contract farming in Preah Vihear Province, Amru Rice has signed contracts with 3,000-plus farmers, involving a total cultivated area of over 5,000 hectares, which produces 8,000-10,000 tons of rice each year. The company promises to purchase rice from those farmers at prices 15-30 percent higher than market price.
"Such a farming operation model has enabled a steady flow of unhusked rice to production lines, thus enhancing the production and export capacities of the company. Later, other rice exporters also showed interests in organic rice and have expanded cooperation with farmers in the form of contract farming," said Jirawuth.
In 2018, Cambodia exported a total of 17,900 tons of fragrant jasmine rice and organic fragrant rice (including fragrant jasmine rice, brown jasmine rice, and red jasmine rice). In the first five months of 2019 (January-May), Cambodia exported 4,824 tons of organic rice, decreasing 2 percent than the same period of last year. That was caused by droughts, which reduced overall rice production by 5-10 percent. The major export markets of Cambodia's organic rice are EU and America.
The price of organic rice is higher that common rice, including three price levels: 1,407 U.S. dollars/ton for organic red jasmine, 1,377 U.S. dollars/ton for organic jasmine, and 1,250 U.S. dollars/ton for organic brown jasmine.
Source: InfoQuest, by Kasamarporn Kittisamphan / Rachada, translated by Xinhua Silk Road
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