China will provide a loan of US$300 million to Cambodia for the construction of rice warehouses in the country to make the country strong enough to face the competition on exports from Thailand and Vietnam said a Cambodian officials.
Mey Kalyan, a senior adviser to the Supreme Economic Council, told the Phnom Penh Post said that the sanction for the loan between the two countries will be signed in the month of JanuaryThe loan amount will be used to build 10 warehouses in the country with the capacity of holding at least 1 million tons of rice/paddy.
The Newly built Silos will help the country to keep the rice stock available enough for domestic consumption as well as for export.
Unavailability of the storage makes the farmer to sell their produce and Cambodian government sell most of it to other markets.
Availability of the storage will eliminate the problem of rapid outflow and able to store these huge quantities to meet the demands of the buyers of Thai rice at lower cost.
Lim Bunheng, president and CEO of Loran Group, a major rice mill in Cambodia said that the Cambodian rice miller welcome this new project.
“In Vietnam and Thailand, there is a availability of storage. There are many government warehouses in the country which encourages the farmer to expand their rice production every year”