Cambodia’s Rice Stocks May Mitigate El Niño Impact

Phnom Penh:Cambodia's substantial rice reserves and status as a net food exporter could provide a buffer against the potential agricultural impacts of the developing super El Niño in the Pacific Ocean. According to Agence Kampuchea Presse, the ASEAN+3 Macroeconomic Research Office (AMRO) reported that Cambodia's rice-stock buffer stands at 3.1 months, surpassed only by China with 8.6 months and Thailand with 3.6 months. In contrast, other regional economies, except Japan with 2.9 months, have rice stocks lasting 2 months or less. AMRO also noted that Cambodia's net food exports are estimated at 0.2 percent of its GDP, while most regional economies are net food importers. In terms of agriculture's contribution to GDP, Myanmar is the most exposed to El Niño at 25.3 percent, followed by Laos with 16.6 percent and Cambodia with 16.1 percent. Regarding agricultural employment, Laos leads with 68.6 percent, followed by Myanmar at 45.0 percent and Cambodia at 33.4 percent. Food costs hold significant weight in co nsumer price indexes across these countries: 58.5 percent in Myanmar, 46.1 percent in Laos, and 43.3 percent in Cambodia. However, AMRO emphasizes that structural exposure does not automatically lead to economic impacts. Factors such as irrigation coverage and reservoir storage can mitigate rainfall shortages, while food stocks and procurement strategies can alleviate temporary supply issues. The Asian Development Bank recently identified Cambodia as one of the few Southeast Asian countries preparing for El Niño as of early September, alongside Indonesia, the Philippines, Thailand, and Vietnam. AMRO's report suggests that El Niño is well-established and could intensify by late 2026, affecting macroeconomic conditions into 2027. The impact will rely on the weather event's severity and the capacity to manage structural vulnerabilities and available resources.