PHNOM PENH: Cambodia is in talks with China to sign the 7th Memorandum of Understanding (MOU) aimed at boosting Cambodian rice exports to China. The current agreement, signed in November 2021, allowed for 400,000 tonnes of rice exports to China, which are set to be completed by the end of May.
However, the new agreement has not yet fixed the volume of rice exports but is set to have an implementation period of 17 months.
Over the past decade, China has gradually increased its import of rice from Cambodia, with the quantity rising from 600 tonnes in 2011 to over 300,000 tonnes annually (equivalent to 10% of China’s yearly rice imports).
Recent data from the Cambodian Rice Federation showed that in Q1 of 2023, Cambodia exported over 170,000 tonnes of rice to 42 destinations, with China being the largest recipient at 80,000 tonnes, accounting for 48% of total exports.
Cambodia and China have had a long-standing economic relationship, and the latest discussions on boosting rice exports are a testament to the shared interest in strengthening trade ties.
Cambodia’s rice industry plays a significant role in the country’s economy, as such enhancing rice exports to China could be a game-changer for the industry, enhancing the livelihoods of many rice farmers and driving up the country’s foreign exchange earnings.
