Government measures to decrease rice price
Rice price has been increasing and now decrease after government intervention. The government as declared by Prime Minister Hun Sen ban rice export to neighboring countries and order Ministry of Commerce to release its rice reserve into the market. This is an important step to increase supply aiming to compensate the high demand of rice.
The export ban is for about two months and the government may consider what shall it do after the two month with high price of rice. It means that the ban is probably only two months or longer than this period.
The government banning measure is described as a revenge measure against Thai government which ban gas exportation to Cambodia which then make gas price increase double. Today, food and other related and complement commodities are increasing as for example fish, fork, chickens, gas, etc.
In recent days, Prime Minister Hun Sen also announced that the government will lift its ban of pig importation from neighboring countries, especially from Vietnam. The lift will increase supply of pig in Cambodia’s market and will lower the pig price. However, this lift is not welcomed by local pig raisers. At the same, the government ordered the Ministry of Agriculture to release fish from stock on time, so that fish price will not be made higher.
These are urgent intervention of government to fight against high inflation due to higher demand of rice in the world, and foreign trade which influenced by neighboring trade policy. As the government recognizes that there is no shortage of rice, thus there must be high price of rice. So far, it is seen that government’s long term strategy in food security is very important. Cambodia is an agriculture country which supply food for only in the country, but also the world market. Agriculture development and domestic food security will help the country stable when Cambodia faces such this problem.



November 12th, 2008 at 11:36
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