The Chinese government-run China National Cereals, Oils and Food stuffs Corporation (COFCO) formally agree for 100,000 tonnes of rice import from Cambodia on 12th August in Beijing.
Officials from COFCO and Green Trade Co, a Cambodian government owned agriculture firm under the Memorandum of Understanding has signed this agreement and this will come into force from this month and last for one year.
The trade will be accomplished under different phases between august 2014 and April 2015.
Ken Ratha, spokesperson of the Ministry of Commerce said that “Cambodia and China have long been trade partners and the fact that Cambodia is a reliable supplier has built trust for this deal,”
The deal was witnessed by the Ministry of commerce of both the countries.
“The South China Sea dispute lately may have also played indirectly a part in China wanting to diversify its rice import base as rice import from Vietnam hit a substantial figure. China imported over 66 per cent of its total rice imports from Vietnam in 2013, while only 1 per cent came from Cambodia,” Van said.
China is fifth biggest rice exporter of combodian rice in the world. Government data show that China imported 7,700 tonnes of Cambodian milled rice in the first six months of year.
But data has showed that the import has declined due to massive transportation cost and also Cambodia couldn’t defeat the Vietnam in price terms.