Page 44 - Regional_rice_report_with_full_bookmarks

PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

Compared to both Vietnam and Thailand, as well as the trend of fluctuation
in rice export of the world as well as another country, Cambodia witnessed a stable
increase in the rice export from 2016 – 2020 in both quantity and value. In 2016, the
export value of Cambodian rice is 300 million USD, which reach a peak in 2020 at 470
million USD. The main factor contributing to this trend is the global rice price as well
as restriction of rice export of some rice exporting countries to ensure food security
during the lockdown. The equivalent increase in the quantity from 542 thousand
tons to 690 thousand tons indicates that there is little change in the price of rice.
Cambodia’s export growth has largely been achieved since 2010 and focused first
on the EU under the special EBA (Everything but Arms) arrangements of the EU-
GSP (Generalised System of Preferences). Cambodia has targeted itself as the high-
value rice in the world, competing mainly in the fragrant rice group. The FOB price
of Cambodia’s fragrant rice is among the highest in the world (Table 14). Besides
the formal trade record, as stated earlier, there is a huge amount of mixed rice from
Cambodians being traded informally to Viet Nam and Thailand, estimated at 3 million
tons/year. Hence, the majority of added value from milling is distributed in Thailand
and Viet Nam (IFC, 2015).

Among ASEAN countries, the value of rice exported from Lao PDR is the least,
almost insignificant compared to other countries in the region. The export value is
also not stable with an increasing trend over the past five years. Rice gained 17 million
USD in 2020, an increase of 54% from the figure of 11.9 million USD in 2015. The value
of rice export fluctuation highly depends on the surplus of demand-supply in the
country. Due to natural disadvantages in producing rice compared to other countries
together with low yield, the rice supply is not stable as well. According to the statistic
from the Department of Agriculture, Lao PDR exported rice about 12 thousand tons,
which account for USD 5.7 million in 2014, and rose to more than 43 thousand tons,
which worth about USD 17.4 million in 2018, while the volume and value will drop in
2019 and 2020 due to the Covid-19 pandemic.

Table 16: FOB export rice price of different countries by type of rice

Market segment Price 2016 2017 2018 2019 2020
Cambodia Fragrant 5% 721.6 681.4 930.5 912.8 844.0
India Rusa Basmati 847.4 1239.9 1282.8 1274.2 1104.7
Aromatic Pakistan Basmati 795.2 1131.4 1022.9 981.8 970.1

Thai Fragrant 768.4 842.6 1166.8 1211.9 1050.6
Viet Fragrant 5% 446.5 522.8 538.8 464.9 491.1
India 100% 287.5 308.5 296.4 306.3 288.9

India 25% 333.4 361.4 373.9 360.7 363.0
Indica: Higher Pakistan 25% 327.1 349.6 360.1 323.8 367.5
quality Thai 25% 385.1 383.6 408.4 410.3 482.9

Thai Al Super 347.8 334.4 365.4 385.2 431.0
Viet 25% 331.6 351.2 391.9 323.2 416.4

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