Rice millers to build storage facilities with ADB loan

Chea Vannak / Khmer Times No Comments Share:
A warehouse for storing rice in Kampong Thom. KT/Pann Rachana

Selected rice millers in Battambang, Kampong Thom, and Prey Veng have been granted access to $10 million loaned by the Asian Development Bank (ADB) to build warehouses and silos.

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The rice millers on Friday signed an agreement with the Rural Development Bank (RDB) and the Climate Resilient Rice Commercialisation Sector Development Programme (Rice-SDP) of the Ministry of Economy and Finance.

Under the agreement, the millers will build storage facilities using an ADB loan. The agreement is important in achieving the government goal of reaching 1 million tonnes a year in rice exports.

Warehouses and silos have been built in Battambang, Kampong Thom, Prey Veng, and Takeo provinces as part of RDB’s emergency fund, a government-led scheme to aid the sector.

RDB’s emergency fund consists of $30 million. The loans must be repaid over ten years with a 5 percent interest rate.

The initiative aims to boost millers’ storage capacity during harvest season and bolster paddy prices for farmers.

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