Gov’t Pledges Over US$60 Million Injection to Catalyse Cashew Production by 2024

• 26 February 2024
• Local News
• 1388 Views

The Cambodian government has allocated a US$35 million loan initiative through the Rural Development and Agriculture Bank (ARDB). This announcement, revealed during the 10th World Cashew Conference in Siem Reap on 1 February 2024, was presided over by HE Dr Aun Porn Moniroth, Deputy Prime Minister and Minister of Economy and Finance.

Simultaneously, the government has earmarked an additional reserve of US$30 million to bolster the cashew harvest in 2024. Aligning with this financial commitment, the Economic and Financial Policy Committee, under the guidance of Prime Minister Samdech Bovathibodi Hun Manet, has issued crucial regulations to stimulate the processing and export of cashew products.

Key measures encompass the reinforcement and expansion of cashew nut exports, beginning with semi-finished products, specifically focusing on the export of dried cashew nuts. The subsequent phase entails amplifying cashew nut processing capabilities while consistently enhancing the Cambodian cashew market. The government is also committed to fostering the consolidation of existing communities and establishing new ones. Moreover, there is a concerted effort to explore avenues for increasing working capital dedicated to local cashew nut processing, coupled with heightened investments in infrastructure for storage and processing.

The Royal Government has introduced comprehensive measures to incentivise the private sector and businesses. Notably, it includes a two-year extension of tax incentives for local processing or export enterprises dealing with agricultural products such as rice, corn, soybeans, cassava, cashew nuts, pepper, and rubber resin. Additionally, enterprises involved in the growth, production, and supply or export of agricultural products, including cashew nuts, will benefit from a two-year income tax exemption spanning 2024-2025.

The government has also rolled out a spectrum of indirect measures, encompassing trade facilitation, tariff preferences, reduced electricity tariffs for agricultural and industrial customers, and streamlined transportation logistics to further bolster the cashew industry.

• Agriculture and Aquaculture Project