China has pledged supplies of oil, gas and agricultural fertiliser to Cambodia as the country faces rising energy and input costs that are weighing on farmers, rural households and small businesses.

According to Kiripost, the commitment came during a meeting between Chinese foreign minister Wang Yi and Cambodian foreign minister Prak Sokhonn on May 27 on the sidelines of a United Nations Security Council high-level debate, according to Cambodia’s foreign ministry.

A ministry statement on May 28 said Beijing had agreed to support Cambodia with energy and fertiliser supplies at a time of tightening domestic pressures and global supply disruption.

China, one of the world’s largest fertiliser exporters, had imposed a ban on fertiliser exports in March to protect its domestic market. However, on May 27 it issued export quotas for urea fertiliser, aimed at easing elevated global prices following supply disruptions linked to the Iran war.

Cambodia is heavily exposed to such shocks. Milan Thomas, country economist at the Asian Development Bank, has previously said the country imports 98% of its fertiliser needs, while around 70% of oil consumption is used in transport.

“It’s import and export reliant, and its structural composition really relies on outside intermediate goods for the economy to function well,” he said, adding that households near the poverty line are most affected.

He said rural households, migrant workers, garment employees and small enterprises were struggling to absorb rising energy costs.

On April 22, farmers in Siem Reap and Prey Veng reported shifting away from agriculture into unstable wage labour and falling deeper into debt, with some facing land seizures after loan defaults. The pressures have been linked to higher diesel and fertiliser prices, extreme heat and stagnant crop prices.