The Henan Yuguang International Economic & Technical Cooperation on Thursday announced plans to build rice storage facilities to boost Cambodia’s rice exports.
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In a meeting with Minister of Commerce Pan Sorasak, Bi Guangmin, chairman of the board of Henan at Yuguang International Economic & Technical Cooperation, unveiled plans to build a warehouse and a silo with a capacity to store up to 1 million tonnes of rice.
He said the project is part of an agreement signed in 2017 with the Cambodian government in which Yuguang International Economic & Technical Cooperation was tasked with building the facilities.
“The company wants to build a warehouse and a silo. These facilities will help increase exports of Cambodian rice to the international market by as much as 500,000 tonnes,” he said.
Minister Sorasak said he supported the project, adding that it will help diversify export markets.
China is the biggest market for Cambodian milled rice. In January, China agreed to increase its import quota for Cambodian milled rice by 100,000 tonnes, increasing the quota to 400,000 tonnes.
Cambodia exported 75,214 metric tonnes of milled rice to China in the first quarter of 2019, a 59 percent rise over the same period last year, according to an official report. This was 44 percent of total rice exports.