The Rice Revolution: Milled vs. Paddy

The most dramatic growth occurred in the rice sector. Cambodia is rapidly closing in on its long-term goal of exporting 1 million tonnes of milled rice annually.

• Milled Rice: Exports hit 940,321 tonnes, a massive 45.6% jump. This high-value export brought in $602 million. Notably, Cambodia’s Phka Rumduol variety was once again named the “World’s Best Rice” in 2025, further boosting global demand.
• Paddy Rice: Exports of unprocessed paddy reached 6.85 million tonnes (up 48.8% year-on-year), primarily sold to neighboring Vietnam, generating an additional $1.58 billion.

Diversification Beyond Rice

While rice made headlines, “non-rice” agricultural products—including cassava, cashews, bananas, and mangoes—accounted for 7.11 million tonnes of the total volume.

• Cassava & Mangoes: Farmers are increasingly shifting from exporting fresh crops to processed versions (like dried cassava and mango jam) to achieve higher profit margins and longer shelf lives.
• Key Markets: China and Vietnam remain the dominant buyers, though the European Union and ASEAN neighbors are becoming increasingly vital for premium milled rice.

Modernizing the “Pillar” of the Economy

Agriculture remains one of Cambodia’s four economic pillars alongside garments, tourism, and construction. Minister of Agriculture H.E. Dith Tina emphasized that despite border challenges and global economic shifts, production capacity remains robust enough to ensure national food security while meeting international demand.

The government is now pivoting its strategy from “household-based farming” to “commercial farming,” incentivizing local processing to ensure that more of that $5 billion revenue stays in the pockets of Cambodian farmers rather than being lost to foreign middlemen.

Recommended Reading

• Internal Link: From Fields to Factories: Cambodia’s New Commercial Farming Strategy
• Internal Link: The 2025 World’s Best Rice: Why Phka Rumduol Continues to Win

FAQ: Cambodia’s 2025 Agricultural Boom

1. Why did paddy rice exports grow faster than milled rice? Paddy rice is easier to transport and sell immediately to neighboring countries like Vietnam, which have higher processing capacities. However, the government is investing heavily in local mills to flip this ratio and export more finished “milled” rice.

2. Who are the biggest buyers of Cambodian agricultural goods? Vietnam is the primary buyer of raw paddy and cashews, while China is the top destination for milled rice, bananas, and longans. The EU is the largest market for Cambodia’s premium fragrant rice.

3. What does “value-added products” mean for farmers? Instead of selling fresh cassava (which rots quickly), farmers are being encouraged to produce dried cassava chips or starch. This “adds value” because the processed product sells for a higher price and can be shipped further.

4. How did the situation at the Thai border affect exports? While some land checkpoints faced temporary closures, the Minister confirmed that the agricultural supply chain remained resilient, with many traders successfully rerouting goods via water transport.

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H.E. Dith Tina expressed strong interest in facilitating direct orders of Cambodian rice for the Philippine market, opening an additional export channel for Cambodian farmers.

To ensure effective progress, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) has arranged a direct meeting between the Philippine delegation and the Cambodia Rice Federation (CRF) to discuss detailed export possibilities and accelerate efforts to materialize this order, MAFF said.

Mutual Benefits and Market Stability

This new agro-commercial cooperation will bring mutual benefits to both nations. The Philippines will secure access to a reliable source of high-quality rice, while Cambodia will gain a new international market.

The opening of this new rice channel is also expected to help MAFF’s partner rice mills increase their capacity to purchase paddy rice from farmers more widely and steadily, supporting market stability.

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