Rice Sector Sounds Alarm On Shrinking Working Capital, Asks for $200 Million

In 2016, the Cambodian government infused $27 million through the Rural Development Bank to assist the sector, adding another $23 million in 2017. The new request is the largest request made so far.

The Cambodia Rice Federation on Wednesday said the sector needed at least $200 million in capital infusion to enable rice millers to buy paddy from farmers, far higher than previous requests for assistance.

Chan Sokheang, vice president for the CRF, said the $200 million was needed as emergency capital to continue the purchase of paddy till January 2020. The rice federation official said there had been a drop in loan approvals from commercial banks, which coincided with the European Union’s imposition of tariffs on rice exports.

He did not provide additional details for why loan approvals were easing off. The rice sector was in January hit with tariffs for three years on exports to the EU, after Italy triggered protectionist measures in the ‘Everything But Arms’ trade scheme.

In full: https://www.voacambodia.com/a/rice-sector-sounds-alarm-on-shrinking-working-capital-asks-for-200-million-/5193736.html

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