February 18, 2025
PHNOM PENH – Agriculture is a vital part of Cambodia’s cultural, social and economic tapestry. Although its share of the gross domestic product (GDP) – the total values of goods and services created in a country – has been gradually declining in recent decades, from 35.5% in 2000 to just 16.5% in 2022, the sector still plays a crucial role in employment, livelihoods and economic growth: More than 5 million people (about 35% of the population) rely on agriculture for their living.
Among all prioritised crops, rice is the dominant and most important one. It is more than just a way of life; it is a source of national pride for the kingdom.
As a staple food of every Cambodian household and a major source of energy and nutrients, rice is integral to food security; therefore, its affordability and availability are essential for ensuring that people have enough food on their tables – This can also be seen as a form of social security.
Rice accounts for 60% of agricultural production and uses one-third of the total agricultural land (as measured in 2023/24).
It also brings in a large amount of foreign currency, direct investment and international prestige to the kingdom.
Over the last decade, rice production has surged from around 9 million tonnes in 2012 to 13 million tonnes in 2024, thanks to improved productivity, restructuring, commercialisation and expansion.
In 2024, Cambodia earned almost $billion from agricultural exports (around 22% of its GDP), nearly half of which came from rice and paddy alone.
In addition to its economic significance, rice is the national champion, consistently raising the kingdom’s flag on the international stage.
Cambodia’s fragrant jasmine rice varieties – such as Phka Rumduol and Malis Angkor – won prestigious “World’s Best Rice” awards in 2012, 2013, 2014, 2018, 2022 and 2024.
This international recognition highlights the expertise and dedication of the Royal Government of Cambodia, farmers, relevant stakeholders and development partners.
Despite its remarkable successes, the rice industry faces formidable challenges ahead, mainly due to the increasingly severe threats resulting from climate change.
The wildfires in Los Angeles and Hawaii, USA, and major flash and prolonged floods in Pakistan, Rwanda and the Democratic Republic of Congo, for example, devastated their communities and economies.
Many attribute these disasters to global rising temperatures caused by human activities including burning fossil fuels and deforestation.
Cambodia, like many other countries in Southeast Asia, faces some of the world’s highest levels of exposure to floods, extreme heat and droughts.
This sort of exposure, coupled with the fragmentation of the rice industry, makes rice farmers highly susceptible to climate-related issues, especially small farmers who generally do not have sufficient resources and knowledge to deal with these calamities on their own.
The Post recently reported that during the 2024 dry season, prolonged drought and a shorter rainy season, resulting from the El Nino phenomenon, affected around 120,000 hectares of rice fields in 17 provinces in the Kingdom.
While 25% of the affected fields were damaged, the remaining 75% were saved through the government’s prompt intervention.
During the rainy season in 2024, floods impacted over 50,000 hectares of rice fields, damaging about 60% of them, and affected almost 60,000 households and over 20,000 homes. Tragically, the floods also caused 27 fatalities.
What’s more, the rice industry also faces a volatile and competitive export market.
Since late 2014, Cambodian farmers growing OM rice have been frustrated by a dramatic plunge in its price due to oversupply. (Many Cambodian farmers have shifted their production to OM rice varieties because of its resistance to diseases and pests, and high yield.)
Another related threat is Cambodia’s impending graduation from Least Developed Countries status.
Once out of this category, Cambodia might lose several trade preferences, resulting in higher tariffs and reduced competitiveness in international rice markets.
Of all the above-mentioned risks, natural disasters appear to be the most challenging ones, placing the rice industry at the mercy of one of the greatest common threats posed by global warming.
According to the 2023 Country Climate Development Report (CCDR) by the World Bank Group, Cambodia, in a business-as-usual scenario in which there are no coping strategies to combat climate change, will find it hard to achieve its ambitious aspirations and vision to become an upper-middle-income country by 2030.
This business-as-usual event is hypothetical and used just for comparison, however. The Cambodian government and its development partners have had and implemented strategic plans to protect and boost this sector (and others).
The Asian Development Bank has, for example, assisted Cambodia in dealing with climate change by strengthening its infrastructure and agriculture development (e.g., irrigation, seeding and post-harvest activities).
The government has also implemented “agricultural price stability” through a $100 million financing scheme of the Agricultural and Rural Development Bank.
As stated in the political agenda of the seventh mandate government, a new programme which sees agricultural specialists deployed to all farming communes across the Kingdom has also been rolled out, albeit slowly, since 2024.
This program aims to enhance the agricultural techniques of Cambodian farmers.
In addition, the Ministry of Agriculture, Forestry and Fisheries has initiated the formation of “Modern Agriculture Communities” to empower Cambodian farmers in terms of market access.
As risks arise, so do opportunities. Even though no one can predict what the future will bring with certainty, we can always leverage the lessons learned from the past and current trends to build a more prepared and resilient society – one that is well-equipped and adaptable to rapidly changing environments.
With this attitude and determination, we can turn climate-related hazards into opportunities, as outlined in the 2023 CCDR for example, by steering our economy onto a resilient, inclusive and sustainable path, on which our beloved crops will continue to thrive.
Dr Veasna Kheng is an economics professor at Monash University in Melbourne, Australia.
Dr Mao Sonariddh is a senior economist at the Ministry of Economy and Finance.
Sean Monorith, also a senior economist with the ministry, is a PhD candidate at the University of Strathclyde, Scotland.
The views and opinions expressed are their own.