The CEO of the Rural Development Bank of Cambodia (ARDB) has called on traders and businesspeople to increase their purchases of cassava from local farmers. The ARDB will continue to provide credit support, noting that the current border closures with Thailand present an opportunity for Cambodia to strengthen and expand its domestic production capacity.
CEO Kao Thach met with cassava and red corn farmers and other stakeholders in Banteay Meanchey province on June 25. Discussions focused on current market conditions. Producers and processors from Battambang, Oddar Meanchey, Pailin, Preah Vihear, Siem Reap and Tboung Khmum provinces were also present.
He stated that one way that the Cambodian government consistently prioritises the livelihood of its people is by implementing special financing programs for the purchase of rice and certain other crops from farmers during major harvest seasons every year.
According to the ARDB, cassava is cultivated by farmers on more than 840,000 hectares annually (yielding about 15 million tonnes), with an estimated economic value of $1.255 billion in 2024. Red corn is cultivated on over 280,000 hectares, producing around 1 million tonnes, with an estimated value of more than $200 million. Cassava is typically planted in early March and harvested continuously starting in July. Red corn planting begins in April and crops are harvested from July onward.
“I urge traders and other businesspeople to continue purchasing cassava from our farmers — the ARDB will continue to support credit financing,” said Thach.
He also discussed measures to address concerns over the lack of collateral among farmers who borrow from private banks.
Two key mechanisms were proposed: 1. A tripartite contract arrangement for cassava and red corn trade (among collectors, export companies and the ARDB), where payment transactions are processed through the ARDB mobile app; and 2. A mechanism which allows the use of dried cassava and red corn inventory as loan collateral (with credit covering up to 70% of the inventory’s value), provided clear purchase agreements with an export or processing company are made.
“I call on everyone to use our national currency — the riel — in local agricultural transactions to minimise exchange rate risks,” he added.
Hong Vanak, an economist with the Royal Academy of Cambodia, told The Post on June 26 that the government’s agricultural policies — boosting processing capacity and providing ARDB-based credit — serve as a crucial driver to enhance Cambodia’s production capabilities. He noted that many agricultural and natural products that previously depended almost entirely on exports, especially to neighbouring countries, are now increasingly being processed domestically.
“Encouraging local traders to buy agricultural products like cassava and red corn is a good strategy. It not only helps farmers by reducing market and price concerns during the harvest season, but also attracts more direct investment into Cambodia,” he said.
Vanak also shared his belief that if Cambodians increase their use of the riel, it would yield significant benefits for the national economy.
