The strong emergence of competition in the marketing system of rice has a largely positive impact on the role of rice growers in Cambodia. It not only brings a close link between the growers and other entrepreneurs and a strong connection between the agricultural and manufacturing sectors, but also demonstrates the various roles that growers can play in the marketing system in order to modernize their agricultural practice. It also gives them an opportunity to build a strong competitive advantage and enables them to standardize the quality of paddy. The contribution of growers to the marketing system and vice versa has a potential to bring sustainable development to the rural economy by giving mutual benefit within the system.

Rice which is the staple food is the most important crop in Cambodia and accounted for nearly one-third of the total agriculture output and about 13% of the total Gross Domestic Product (GDP) in 1998. In the crop year 1999-2000, Cambodia produced about 4.04 mn. tons of paddy, and there has been a gradual improvement in productivity and area under cultivation in the last decade. This increased rice production had a positive influence on the marketed surplus, and the increased surplus has in turn widened the marketing chain. Hence, the participation of growers as well as traders (millers, assemblers, wholesalers and retailers) in village and urban areas has been increasing.

Since the free market economy began in the early 1990s, rice/paddy marketing in Cambodia has been entrusted entirely to the private sector, and the competition between the involved parties in the marketing system has emerged strongly. According to a case study of Japan during the pre-war period by Kawagoe and Toshihiko (1998), the dynamic changes in Japan's marketing system took place when the market was under free competition and government intervention was limited. Through competition, quality control on rice was promoted by the initiative of the rural-based entrepreneurs, including progressive farmers and rice traders, and the qualitative and quantitative standards were established in each region of Japan. He argues that entrepreneurship is not unique to a certain social group, but can emerge from the peasantry if market opportunities are available. His study revealed that the emergence of entrepreneurs from the rural population played a key role in creating a modern marketing system which means that even standardization and grading of rice are promoted at the local level through the initiative of rural entrepreneurs.

Bray and Francesca (1986) stated that the potential for economic diversification using household labor and low levels of capital investment gave the Asian farmers further scope for individualistic entrepreneurial activity.

Despite their potential role in involving in the entrepreneurial activity, farmers have often been exploited by traders in the marketing system. Frequently, the benefit seems to go more to those traders such as paddy collectors and rice millers (Zaki Uz Zaman, 2003). Numerous possibilities exist for rice traders to cheat farmers marginally on market prices relative to product qualities, including the notorious practice of manipulating scales and measures (Hayami, et al., 1999).

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