At a news conference, he said the sugar crop will end with the production of 131,000 tonnes against the budgeted target of 113,539 tonnes, representing an increase of 15.4 per cent.

Production of rice at the end of the first week of this month stood at 137,000 tonnes with 83 per cent of the sown area harvested, he reported.

It is predicted that production will reach 80 per cent of the budgeted figure when harvesting is completed at the end of this month.

Chandarpal said the rice crop has been hindered by a combination of prolonged dry weather resulting in a shortage of water, and the `Blast' disease.

Touching on the relief package for farmers agreed upon between the Government and bankers, the minister said it was unfortunate that the farmers had not yet benefited from the package.

He explained that the problem arose because at the time of the agreement the bankers had not indicated any need for any further documentation or legislative measures to implement the accord. However, about a month ago the bankers said they needed further documentary assurances before they could implement the relief package.

Through collaboration between his ministry and the Ministry of Finance, Chandarpal said Finance Minister, Mr. Saisnarine Kowlessar has issued the necessary documentary assurances to the bankers and this should clear the way for implementing the relief agreement.

Agreement was reached this year following negotiations between the Government, the Guyana Association of Bankers (GAB) and the Guyana Rice Producers Association for rescheduling loans of (RPA) rice farmers who owe banks $10M or less as at August 2001.

Chandarpal, however, announced a long-term strategic plan (2001-2002) aimed at creating an integrated and sustainable rice industry that can "produce, process and competitively market high quality rice" to the benefit of all Guyanese.

Under this plan it is envisaged that Guyana would increase rice production and productivity to the point where it becomes internationally competitive with a targeted yield of 38 bags per acre.

The post-harvest handling system would be improved to radically reduce quantity losses and maintain or improve the quality of rice, the minister projected. Conditions would also be created to make the rice industry competitive in all targeted markets, he said.

Chandarpal said the Guyana Sugar Corporation (GUYSUCO) is "comfortably meeting all its marketing commitments to the EU (European Union) and the USA and is initiating a more aggressive approach to marketing in the region with the objectives of achieving better prices and new markets for packaged and bagged sugar."

Overall sales (export and local) for the period January to April reached 87,661 tonnes, while total sales for this year are projected at 335,978 tonnes.

Projected sales to Caribbean Community (CARICOM) countries for this year are 58,000 tonnes, and it is possible that 10,000 tonnes would be exported to the state of Roraima in Brazil, Chandarpal told reporters.

Yields have also improved in the industry - in East Demerara output has moved from 68 to 75/80 tonnes per hectare, while on the West Demerara the comparable figures are from 62 to 75 tonnes. Skeldon and Blairmont continue to produce more than 80 tonnes per hectare, the minister said.

Total production for the year is 321,000 tonnes against the budgeted target of 305,867 tonnes, representing an anticipated increase of 13 per cent over last year's production of 284,474 tonnes.

Chandarpal also announced that the Skeldon Estate modernisation project was moving apace with the United Kingdom-based Booker Tate company being awarded the project management contract while the pre-qualification exercises have been completed for the construction of the new factory and equipment for it.

The tender documents for the latter have been separated into four components, he said. Twenty five companies from around the world, including Korea, Japan, India, Brazil, the EU, South Africa and Australia have satisfied the guidelines, he said.

A total of US$46M has been secured for the project so far from international financial institutions - the World Bank providing US$21M and the Caribbean Development Bank US$25M. Internally, GUYSUCO will raise US$15M through sales of lands and other initiatives.

The total cost of the project is estimated at $US110M.

However, Chandarpal said that all the funds are not needed immediately as the project will be executed in phases and now that the scheme has become a reality, assurances have been given by other financial institutions to provide further funding.