Qatar stakes claim on Cambodian farmland
by Joel Bowman on Thursday, 08 May 2008
Qatar plans to invest approximately $200 million in Cambodia=92s
agricultural sector as the Gulf state looks to secure food supplies
amid surging world prices.
Hor Namhong, Cambodia=92s deputy prime minister and minister of foreign
affairs and international cooperation, said on Wednesday the two
countries were close to signing an agreement, reported Qatari daily
Gulf Times.
The announcement was made during a state visit by Sheikh Hamad bin
Jassim bin Jabor Al Thani, Qatar prime minister and minister of
foreign affairs.
Under the proposed deal Qatar would provide funding to restore
Cambodia's agricultural infrastructure, including an irrigation system
for over 300,000 hectares of rice planting fields in the provinces of
Savy Rieng, Prey Veng and Kampong Cham.
In return, Qatar aims to lock in a deal to secure some of the
purchasing options on yields from the crops, giving the Gulf state an
opportunity to stake a claim on a reliable future food supply.
Food shortages around the world have led to soaring costs for wheat,
rice, corn and other grains, driving up prices at the grocery store.
Already under severe inflationary pressure, Qatar has seen price tags
at supermarkets increase dramatically in recent months as global
demand outstrips supply chains despite government initiatives to fix
and control prices.
Inflation in Qatar, the world's largest exporter of liquefied natural
gas, hit 13.7% in the fourth quarter, just off a record. Rents surged
almost 28%.
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