The price of rice has doubled over one year.Cambodge Soir
25-09-2008
According to an independent survey, the importance of food products and fuel in the household consumption has been underestimated.
In one year, the price of rice has doubled and the one of fuel has increased with 50%, indicates a survey of the Cambodia Development Resource Institute (CDRI), published on Thursday 25 September. According to the CDRI, the inflation exceeds the official number of 22.3% which was announced for the period between July 2007 and July 2008.
This number, based on a basket composed of 227 consumption goods, doesn’t give enough importance to food products, which represent 70% of the expenses for 40% of the population. In order to cope with this price increase, the poorer have bought lower quality rice, with a price increase from 1000 riel to 2000 riel per kilogram, while the traditional rice increased from 2000 riel to 4000 riel per kilogram.
Other food products with the highest increase between May 2007 and May 2008 are pork (between 50 and 70%), poultry (+54%) and beef (+16%).
The price increase of fuel and labour has resulted in higher production costs. Gasoline increased with 50%, diesel with 80%, fertilizers between 80 and 200% and one day of labour between 40 and 50%, particularly on the field of agriculture.
Amongst the sectors most hit by inflation: the food products and tobacco (36.8% on average), transport and communication services (27.1%), and medical care (16.2%).
The areas suffering from the highest inflation are the regions of the Tonlé Sap, in the provinces of Siem Reap, Kampong Thom and Kampong Chhnang. 37% of the households might face scarcity.
Over short term, the CDRI recommends that the country increases its food reserves in order to limit the impact of food price fluctuations. The Institute mentions that rice imports which aren’t registered through customs are an obstacle for the evaluation of cereal stocks.
Over mid-term, the independent Institute believes that it’s essential to invest in agriculture in order to ensure food self-sufficiency in Cambodia.
25-09-2008
According to an independent survey, the importance of food products and fuel in the household consumption has been underestimated.
In one year, the price of rice has doubled and the one of fuel has increased with 50%, indicates a survey of the Cambodia Development Resource Institute (CDRI), published on Thursday 25 September. According to the CDRI, the inflation exceeds the official number of 22.3% which was announced for the period between July 2007 and July 2008.
This number, based on a basket composed of 227 consumption goods, doesn’t give enough importance to food products, which represent 70% of the expenses for 40% of the population. In order to cope with this price increase, the poorer have bought lower quality rice, with a price increase from 1000 riel to 2000 riel per kilogram, while the traditional rice increased from 2000 riel to 4000 riel per kilogram.
Other food products with the highest increase between May 2007 and May 2008 are pork (between 50 and 70%), poultry (+54%) and beef (+16%).
The price increase of fuel and labour has resulted in higher production costs. Gasoline increased with 50%, diesel with 80%, fertilizers between 80 and 200% and one day of labour between 40 and 50%, particularly on the field of agriculture.
Amongst the sectors most hit by inflation: the food products and tobacco (36.8% on average), transport and communication services (27.1%), and medical care (16.2%).
The areas suffering from the highest inflation are the regions of the Tonlé Sap, in the provinces of Siem Reap, Kampong Thom and Kampong Chhnang. 37% of the households might face scarcity.
Over short term, the CDRI recommends that the country increases its food reserves in order to limit the impact of food price fluctuations. The Institute mentions that rice imports which aren’t registered through customs are an obstacle for the evaluation of cereal stocks.
Over mid-term, the independent Institute believes that it’s essential to invest in agriculture in order to ensure food self-sufficiency in Cambodia.
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