This morning, 26 May 2008, in Phnom Penh, Samdech Akka Maha Seda Padei De Cho Hun Sen announced that the government lifts its two month rice export ban, 26 March - 26 May 2008. This lift is to start from 27 May until 31 December 2008 and after that there will be reconsideration on the rice export decision of the government. This ban lift is due to the fact that Cambodia could produce enough paddy rice for domestic supply and it is predicted that Cambodia could export about 1.6 million tons of paddy rice this year.

This announcement has made just after a Royal Cow Ceremony on Friday 23 May forecasted that Cambodia’s rice yield is good and whether condition is favorable for cultivation. This is parralell to Ministry of Metorology and Water Management saying that weather is in good condition this year and there will be probably no dry season of 15 days during the rainy season. This information actually has provided optimistic ideas and expectation for Cambodia’s farmers and its intention to become a rice exporting country.

Cambodia allows small rice export with amount of less than 100 tons made by traders and encourages them to export through legal border checkpoint so that the government will be easy to control on the export statistics. But for rice export with amount from 100 tons shall be traded through two rice export companies which are given permission from the government. This measure has provided incentives for farmers to be able to export their rice by themselves and make international trade more legal or done through legal checking points. However, this permission is allowed for not exceed 1.6 million tons of paddy rice, a surplus amount of rice supply in Cambodia available per year.

What is important to note is that Cambodia could export paddy rice more than milled rice. This is due to limited capacity of milling rice for exportation. In the near future, it is tremendously important that the government will provide better incentives for rice millers or implement measures that increase rice mill capacity to increase rice export to replace export of paddy rice. This measure will provided value added to rice chain industry.