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.