Phnom Penh Municipality officials claim rice prices in the city have fallen 22 percent due to the government's Mar 26 decision to release hundreds of tons of surplus rice onto the market. However, local rice traders say that, while prices have stabilized, they are yet to fall.
"Phkar knhei [high quality] rice has decreased from 3,600 riel per kg to 3,000 riel; neang minh [medium quality] rice from 2,700 riel to 2,100 riel; and low quality rice from 2,600 riel to 2,000 riel," claimed Oum Sotha, chief of the Phnom Penh Municipality's Department of Commerce. He said the government has released 200 tons of rice onto the market from its reserves since Mar 26, while the Rice Miller's Association of Cambodia (RMAC) has released 500 tons.
However, Srey On, a rice seller from the City's Beong Keng Kang market, said that prices of rice at her shop are merely stable, with phkar knhei rice at 3,300 riel per kg, neang minh at 2,700 riel and low quality rice at 2,500 riel.
Keo Siphann, a rice wholesaler operating opposite Phnom Penh train station, also said prices at her shop have not declined but at least are not showing the rapid increases of recent weeks. RMAC President Phou Puy said his association has released about 100 tons daily since the measures came into effect. "So far, the association has released about 500 tons of rice nationwide including 400 tons to Phnom Penh," said Phou Puy. "Now the price of rice is becoming normal."
As fears over inflation rise, Phnom Penh governor Kep Chuktema has decreed all vendors in the city must display clear price tags on their goods. "All vendors in the markets, all shops, restaurants…. must show price tags for their goods and commodities, otherwise their businesses or stalls must be shut down," warned Kep Chuktema. This measure will enable authorities to inspect prices of goods and commodities, said the governor, adding that the decree will also enable local authorities to find vendors who are unfairly pushing up prices.
"It is OK if prices are raised in line with high prices on the international market, but there are concerns that some vendors just want to spur high prices for their own interest," he said. He also criticized the police for collecting money from vendors and inspecting price hikes too loosely. "In this time of high inflation some police are still collecting money from vendors, forcing them to increase the prices of their products further," he said.
This article first appeared in The Mekong Times
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