Publish Date : 29-Apr-2015
Cambodia would likely take part in an Iraqi bid for 30,000 tonnes of milled rice this month.
The Iraqi government seeks international tenders from Cambodia, Uruguay, Brazil, Vietnam, Pakistan, India, Thailand and the US, said Thai rice news website Oryza, with April 26 being the last day for submitting bids.
Son Saran, CEO and chairman of Amru Rice Cambodia, a joint venture with Korean business conglomerate Hanwha, said already Amru is in a contract with a private Iraqi firm to supply 1,000 tonnes of rice yearly. Winning even part of the 30,000-tonne tender would require much more preparation as the deadline approaches.
He added, “Now, we are working to join the bidding before the deadline, but we want to lobby them [for us]to supply only around 3,000 tonnes a year,” he said.
According to Saran, Iraq is required to import over half a million tonnes of rice per year in order to satisfy its domestic demand. He added, “If we can get it, it will be a good destination for us as the price is also good. However, he did not reveal the price due to the bidding process.
David Van, senior adviser to the Cambodia Rice Federation, stated that still local exporters face challenges in terms of their capacity. Van adds, “I don’t think Cambodian exporters have the sophisticated skills to ensure all due risks management by selling to such a country.”
“Nonetheless, there may be some brave Cambodian exporters out there who would give it a try.”
For the first quarter of 2015, Cambodia exported 207 tonnes of milled rice to Iraq, while it shipped around 828 tonnes in all of last year.
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