Despite all the hype about encouraging rice exports from Cambodia, the first 10 months of the year saw the increase limited to more than 7 percent according to the Phnom Penh Post (18 November 2011). A trader is quoted as the increase attributed
'... to a decrease in corruption'.Again the Phnom Penh Post (23 November 2011) reports that banks are willing to invest hundreds of millions into the rice sector. The catch?
'In fact, I’d be happy to make $100 million available today for millers with the right credit quality,” CEO [of ANZ Royal] Stephen Higgins said'.And it is the lack of credit worthiness that is a major factor in traders having insufficient access to the funds, so not so newsworthy. Possibly the government could step in as guarantor?
Rice reforms are another issue required says Cambodian PM according to a Phnom Penh Post report on November 24 2011.
'During his speech at the 16th Government-Private Sector Forum at the Council of Ministers, Hun Sen urged ministers to open a “one-stop window” to streamline the export process while also calling for the creation of a rice exporter’s association'.However there already exists a Cambodian Rice Exporter Association! But with little publicity ... Compare with say the Thai Rice Exporters Association.
Transparency? A Japanese energy company with the inventive name of New Energy and Industrial Technology Development Organization (NEDO) signs an MoU with the Cambodia's Ministry of Industry, Mines and Energy to generate energy while milling rice (Phnom Penh Post, 23 November 2011). But where is the private sector involved? NEDO is actually a Japanese government organisation so that explains the MoU. But what will become of the rice mill? Competition for the private sector?
Hybrid news
As always when disasters happen, the vultures are always near. The Bangkok Post (1 December 2011) reports how CP has teamed up with Thailand's state run rural bank BAAC to help farmers ... get addicted to hybrid rice.
'Rice farmers who obtained career rehabilitation loans from BAAC have the option of entering the programme, in which farm management, technologies and hybrid rice seeds are essential. ... The company will buy back paddy at fair prices or help farmers to improve and distribute paddy to the market'.Of course this will be a boon for farmers, productivity rates are great blah, blah. But wait, what will be the price for the produce? Lower than normal and CP is promising a fair price, which translates in an even lower price. Risks? Who will be paying? The taxman?
Interesting? Farmers in Ranchi, India are happy with their bumper harvests of rice this year (Times of India, December 4, 2011) due to the use of hybrid seeds and SRI! Opposing ends?
Food for thought
Finally an interesting article from the New Mandala (December 8, 2011) concerning research on Cambodia. The author, Maylee Thavant, highlights his/her research findings concerning the exploration of authentic and/or traditional cultivation of rice in Cambodia. The conclusions are that sustainable agriculture and organic agriculture promotion
'may impose First World consumer ideals and tastes'with little to offer the broader development of agriculture in Cambodia. Rises in productivity are not coming from emphasis on traditional practices but are the result of increasing returns from higher investment in processes, cultivation and production means. Just a pity that the original document itself is not publicly available, more imposition of traditional means of science publication imposed on the non-scientific?
Anyway I believe that heaping organic with sustainable is not the same. There is a lot to learn from seeking organic markets if only the lessons learnt from seeking more sophisticated markets.
Sustainable though seeks to dissuade farmers from taking up more modern but often more self-destructive methods without any short term financial rewards other than a good feeling for farmers and development organisation. Possibly farmers are better served in this case by informing farmers of better ways of modern farming which ensures better financial rewards.