India Queen Basmati Rice

According to the sources, the Cambodian rice exporters have expressed their feelings that Cambodia may not bid for the Philippines tender for 750,000 tons as they cannot compete with Thailand and Vietnam exporters on price. However, the National Food Authority (NFA) of the Philippines, which was authorized for the import of 750,000 tonnes of rice, has invited the governments of Cambodia, Thailand and Vietnam to join the bidding process to fill the quota.

In this context, the Director-General of the state-owned agriculture company informed that by giving higher costs of production, storage and transportation, Cambodia cannot lower its price to a large extent unlike Vietnam and Thailand. Cost of rice is still higher in the Cambodia than from other countries. So we will consider joining the next bid when we can lower the cost of rice. However, meanwhile, there is a process of discussion  are taking place on  which sectors one can cut the  cost that would lower the cost of rice.

Furthermore, it has been informed that in June this year, Cambodia lost in a tender invited by the NFA for import of 100,000 tons. However, the Vietnam bid at around $416 per ton and the Cambodia bid at around $455 per ton, which was much higher than the Philippines’ reference price of $408.15 per ton. In addition, official of Cambodia Rice Federation (CRF) quoted that NFA needs good quality rice at a low price and but it could not compete with the cost of rice. Further, it was  also added that the CRF members are still undecided over bidding for the Philippines tender.