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.
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.