Chapter 2 Cambodia - ERIA

operations. The long chain usually inhibits returns to growers. Cambodia has a distinct advantageover other exporting countries due to its proximity to the market for in-shell cashews.The Asian regional markets so far identified are Thailand, which imported 1,775 metric tons in2007 (mainly from Viet Nam); Singapore, a small market importing about 1,000 metric tons peryear, but in which organic products are becoming significant; and China, which may become avery important market.Box 5.1: Agriculture is important for sustaining growth and reducing povertyProgress in agriculture has been historically impressive. There is still more room for yieldsimprovement (compared to yields achieved in neighboring countries), which can be realized byinvesting in physical infrastructure, especially irrigation systems; increasing agriculturalproductivity; and promoting agricultural diversification. The government has given seriousthought to the factors of production costs and output as well as capacity in purchasing,stockpiling, and processing Cambodian rice....in 2008, the government provided a special creditline amounting to US$12 million (through the Rural Development Bank) to help private ricemillers collect paddy rice to ensure domestic supply.... In 2009, the government offered a budgetamounting to US$18 million to the Rural Development Bank to continue the activities....thegovernment will convert the budget to establish an “Agriculture Support and DevelopmentFund” to support the private sector, especially small and medium enterprises, on a number oftargets including (1) providing short-term credit for collecting paddy rice from farmers at anappropriate price to maintain price stability and ensure food security and (2) providing mediumtermcredit to rice millers to increase their capacity in stockpiling, drying, and processing... thegovernment will continue to enforce a zero-tariff policy on the importation of agriculturalmaterials such as seeds, fertilizers, pesticides, and agricultural equipment, etc. ... the governmenthas also been working to streamline procedures in rice exports and to gradually strengthen therice-export management mechanism while improving domestic capacity in rice purchasing,processing, distribution, and export.... the government is drafting legal procedures for investment113