Although domestic agricultural production has been increasing in recent years in Cambodia, vegetables, fruit and other food products imported from neighbouring countries, are a threat to the sector. At an agricultural forum on Wednesday 9 March, speakers reported that more needs to be done to assist the industry, as imports are one of the factors pushing Cambodian farmers to stop farming.
Major barriers to developing the industry include a lack of water, limited finances, a lack of markets and the high cost of electricity for production.
Research conducted by the Center for Policy Studies’ program shows that 200 to 400 tons of vegetables are imported daily from neighboring countries. The research found that between $150 million and $250 million is spent annually on vegetable imports from Vietnam, Thailand and China.
Experts at the forum said Cambodia loses economic benefits when tons of agricultural products from neighboring countries are shipped in. The imports undercut local farmers, they said.
Tek Vannara, the executive director of NGO Forum, said “The government should help with prices, so farmers will increase their production for markets. As the ASEAN Economic Community integrated late in December 2015, Cambodia should pay more attention and strengthen our local products,” he added.
Mr. Vannara said Cambodia could not stop allowing imported goods from other countries because Cambodia is a part of the ASEAN Economic Community.
With ASEAN integration, competition should help bring down the high price of agricultural production, which can help Cambodian farmers increase their products, Mr. Vannara said.
Ty Sokun, a secretary of state at the Ministry of Agriculture, Forestry and Fisheries, said the government has implemented a policy to help the industry. “As we can see, more irrigation systems have been built year to year,” Mr. Sokun said.
The government will allocate about $6 million from the national budget to upgrade and expand vegetable farms to reduce reliance on imports from neighboring countries, according to the draft “Boosting Food Production Program (2016-2018)” released by the Center for Policy Studies.
The $6 million budget will begin with infrastructure, including building storage facilities, irrigation ponds, drip-irrigation systems, transportation to markets and upgrading markets, as well as developing sites for fertilizer and compost production.
