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Cambodia’s government plans $35 million to support modern agricultural communities

Cambodia will allocate an additional \$35 million from 2025 to 2027 to support concessional loans for modern agricultural communities. Announced by Prime Minister Hun Manet, the initiative aims to improve crop quality and market access. Currently, 2,601 communities cultivate crops like rice, cashew nuts, and vegetables. Six groups already benefit from \$1.9 million in low-interest loans for working capital.

PHNOM PENH – The government has decided in principle to allocate an additional $35 million to support concessional loans for modern agricultural communities, aiming to strengthen the quality of the agricultural sector and improve market access. The funds will be made available over the next three years.

During the first meeting of the National Assembly and Senate on June 3, Prime Minister Hun Manet announced that the Royal Government had decided to allocate this special budget to provide low-interest loans to modern agricultural communities. This initiative is part of a broader effort to enhance agricultural quality and market competitiveness. The government also plans to expand the development of these communities and increase farmer participation.

The prime minister noted that Cambodia has achieved significant results in this area, including the establishment of 12 new modern agricultural communities, bringing the total to 2,601 officially registered communities in 7 provinces: Siem Reap, Kampong Thom, Takeo, Kampong Chhnang, Kandal, Tboung Khmum and Pursat. These communities focus on four strategic crops: rice, cashew nuts, vegetables and pepper.

“The Royal Government has decided in principle to prepare an additional special fund of $35 million to support low-interest loans for modern agricultural communities for the period 2025–2027. At the same time, we are expanding modern agricultural community development in more provinces and covering other high-value crops such as cashew nuts, rubber and durian,” he said.

He believed that Cambodia’s recent progress in the agricultural sector was a result of consistent efforts by past and present governments, through well-calibrated policies suited to the country’s evolving socio-economic conditions.

“During times when Cambodia faced food shortages, the government adopted the 1987 strategic policy of transitioning from broad-based implementation to in-depth development — an approach detailed by former Prime Minister Hun Sen. The goal was to increase productivity through improved irrigation, expanded cultivation and agribusiness development (including dry-season rice farming using reliable water sources). This was complemented by research into modern technology, improved seed varieties, mechanisation, tax incentives for agriculture and the expansion of farmland,” he explained.

“Today, Cambodia’s agricultural sector can fully support national food security under all circumstances and has effectively avoided food crises, even during the Covid-19 pandemic, natural disasters or geopolitical tensions. It has also shown resilience to climate change and external shocks,” he added.

Including the latest 12, the Kingdom’s modern agricultural communities cover a total cultivated area of 11,421 hectares, with an annual production value of $19.77 million. Currently, 6 modern agricultural communities are receiving low-interest government loans (at about 7% annual interest) as working capital, totalling approximately $1.9 million.

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Source : ANN

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