Local company Virasun Development and the United Arab Emirates (UAE)’s International Trading on Monday signed a memorandum of understanding (MoU) for the purchase and sale of 50,000 tonnes of milled rice and 50,000 tonnes of organic fertilizers per year, according to a senior official working for the Ministry of Agriculture.
Hean Vanhan, the director-general of the General Directorate of Agriculture at the Ministry of Agriculture, who presided over the signing ceremony, told Khmer Times yesterday that Cambodia has previously only exported small amounts of milled rice to the Emirates, adding that the new agreement was an excellent development for the industry.
Mr Vanhan said that Virasun Development will sell 50,000 tonnes of milled rice to International Trading per year. In turn, the Cambodian company will purchase 50,000 tonnes of fertilizer materials from the enterprise.
“The Ministry of Agriculture, and particularly the General Directorate of Agriculture, plays a key role in facilitating those challenges encountered by the private sector and fostering this type of agreement,” Mr Vanhan said.
The government official added that both companies need to comply with Cambodian law and make sure all proper registrations and quality tests are carried out before the fertilizers are brought into the country.
Mr Vanhan also said that basmati rice is the preferred rice variety in the Emirates, but noted that the Arab nation also needs imports of other rice varieties to meet demand from migrant workers.
Cambodia exported about 420,000 tonnes of milled rice to 60 international markets in the first nine months of the year, an increase of 16 percent compared with the same period last year. The main export markets for the product are China, France and Poland, according to official reports.