It is because of the world economic slowdown which affected the garment industry and tourism sector in Cambodia, the United Nations asked international donors to increase farm aid in order to save Cambodian economy. The agriculture sector is playing important role in economic growth and poverty reduction.
Speaking in an economic forum, Douglas Broderick, resident representative of the United Nations Development Program (UNDP), said that Cambodia had great potential in terms of its location in Southeast Asia but required financial support, reported Reuters.
“A fertile agricultural sector produces white gold to set Cambodia apart and propel its economic growth,” said Broderick.
The medium- and long-term challenges are just as great. Having relied heavily on four sectors of the economy- agriculture, garments, construction and tourism- to drive recent growth.
Chan Sarun, the Minister of Agriculture, said in the annual conference Wednesday, November 27, 2008 that Cambodia’s rice yield for the 2008-09 harvest is projected to be up 400,000 tons from the last year to about 6.8 million tons of paddy rice, which is expected to create a 2.8 million-ton rice surplus.
Yang Saing Koma, president of the Cambodian Center for Studies and Agricultural Development (CEDAC), on Thursday said the government should inject US$200 million to $300 million into the agricultural sector, quoted by the Phnom Penh Post.
It is expected that the exports of milled rice productions will be increasing up to 200,000 tons from 20,000 in 2008. The private sector is required to maintain minimum stocks of 500,000 tons in 2009, up from 400,000 last year.
“If the government does not increase … investments, we believe that the future of the agricultural sector will be more and more weak … as productivity gets lower … and as a result more and more young people will move from their homes,” he said. “Nowadays, the government always says ‘develop the agricultural sector’, but in reality not much is done…. We wish the government would do more sustainable work over the next decade so that Cambodian agriculture can accelerate,” said Yang Saing Koma.