Battambang: Dr. Kao Thach, the Royal Government Delegate in Charge of the Agricultural and Rural Development Bank (ARDB) and President of the Techo Farmers Network Association, has promoted and supported the agricultural production contract mechanism between City Rice and rice farmers in Banan district to jointly ensure the purchase of rice from farmers at a reasonable price on the market.
Dr. Kao Thach made the remarks during the high-level presiding ceremony of the signing of an agricultural production contract on the production and supply of rice between the representative of City Rice Import Export Co., Ltd., Mr. Lay Chhun Hang, and the rice farmer group, Mr. Chan Sam Ol, on the afternoon of July 19, 2026, organized by the Agricultural and Rural Development Bank (ARDB), Battambang Provincial Branch.
The purpose of the signing ceremony is to create a partnership between the private sector and farmers by guaranteeing the purchase of rice from farmers at a reasonable and stable price, which helps reduce market risks and price gouging from some traders.
On that occasion, Dr. Kao Thach spoke highly of this initiative, even though it is a pilot step, and hoped that this initiative would expand further. He wanted to show farmers that they trust ARDB Bank because it has been working for many years. Therefore, I hope that both parties trust their partners.
Dr. Dr. Dangpham considered the “agricultural production contract” mechanism to be an effective tool in linking market demand and production, not only helping farmers feel comfortable in increasing their yields, but also helping rice exporting companies have a source of quality rice and clear standards for export.
At the same time, the delegation also recommended that both parties respect the spirit of the contract in good faith, namely that the rice producing group must strive to cultivate according to the techniques and quality standards that the exporting company and the rice processing factory want, and in particular, City Rice must ensure that it purchases rice from farmers according to the agreed prices and conditions in order to maintain the sustainability of their business in the future.
In addition, Dr. Kao Thach urged farmers to be aware of their production costs to increase profits and advised farmers to join the Techo Farmers Network Association, which is a bridge to help facilitate the connection of technical information, markets, low-interest capital sources, and finding buyers.
Moreover, most importantly, ARDB, as the policy bank of the Royal Government, will continue to stand behind to support financing, both by providing low-interest loans to farmers for working capital and to rice milling companies for purchasing and storing rice, which is an important contribution to maintaining stable rice prices on the national market.
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