Cambodia

Cambodia proposes rice cartel to ensure global food security

Article published on the 2008-05-05 Latest update 2008-05-05 09:38 TU

Rice for sale at Calamba Market, near Manilla.
Photo: S. Farcis/RFI

Cambodian Prime Minister Hun Sen said on Monday that a proposed OPEC-style cartel in Southeast Asia would help to ensure global food security. He rejected criticisms that the proposal would only serve to increase hunger and poverty.

Thai Prime Minister Samak had already announced last week that Thailand had agreed in principle to a similar cartel system with Myanmar, Laos, Vietnam and Cambodia, to fix rice prices as cost soar out of control. Thailand is the world's biggest rice exporter.

The proposed cartel would be called that Organisation of Rice Exporting Countries, and would run along similar lines to oil cartel OPEC. It would draw together countries along the Mekong River.

Hun Sen denied that the organisation would try to manipulate markets, saying that the aim of the organisation was to ensure global food security. Speaking at a university graduation ceremony in Phnom Penh, the Cambodian leader insisted that the OREC would not stockpile rice or increase prices.

He also urged other Southeast Asian nations, such as the Philippines, not to be concerned about the project. Senior Philippine officials have already stated their concerns, saying that the plan would exacerbate hunger and poverty. Their country is the world's biggest rice importer. The Asian Development Bank has also come out against the plan.

The five proposed members of the cartel are to meet for talks in October. Hun Sen said that the countries involved planned export up to 15 million tonnes of rice per year.