The Asian Development Bank (ADB) has approved loans of 55 million USD to
help Cambodia transform the predominantly subsistence rice sector into a
commercially oriented industry, while taking care of land and water
resources.

According to an ADB’s press release, the project
loan will be channeled to the provinces of Battambang, Kampong Thom and
Prey Veng, the largest rice producing provinces in the country, to help
farmers improve crop productivity and their efficiency along the rice
value chain.

Funds will also be utilised for legal and
regulatory reforms to promote local seed production and distribution,
strengthen agricultural land management, improve capacity of farmers’
organizations, promote contract farming, and encourage domestic trading
and export of milled rice, it said.

An efficient rice value
chain and increased productivity will benefit about 1 million low income
rice farming households, with each expected to gain additional income
of 300 USD a year by 2020, it added.

In addition to the loans,
ADB will also administer loans and grants of 9.5 million USD from the
ADB’s Strategic Climate Fund and a 14.6 million USD grant from the
Global Agriculture and Food Security Program, according to the press
release.-VNA