Cambodia Rice News: Rice millers to increase capital

Rice millers to increase capital

Cambodian rice millers will increase their capital to purchase unmilled rice this season as bankers agreed to provide more loans, insiders said on Monday.

Baitong will increase its capital to purchase up to 140,000 tonnes of fragrant unmilled rice, compared to last year’s 70,000 tonnes said Phou Puy, president of the Federation of Rice Millers Associations and the Baitong Rice Export Company.

Working capital would increase from US$28 million to $50 million this year as fragrant unmilled rice cost $450 per tonne, an increase from $400 per tonne he said.

Acleda Bank will increase loans for the agricultural sector to $200 million, with a total of $1.35 billion over the next year, an increase of $50 million from the year before, In Channy, CEO and president of Acleda Bank, said.

“We have increased loans for this sector because of the royal government’s policies and in order to support this sector,” he said.

“There is no lack of capital, but the most important thing is that rice millers have to have specific financial statements in order for the bank’s officials to grant loans.

“Outside markets are getting bigger and bigger and we have more partners and more orders. We know there are increases in demand, so we have to be prepared,” he said.

The Loran import-export company, which has rice milling operations in Battambang and Kandal provinces, has agreed to buy at least 120,000 tonnes of fragrant unmilled rice after last year when Loran was able to buy only 20,000 tonnes of unmilled rice for processing, President Lim Bunheng said.

Source: Phnompenhpost/28June2012

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