Speaking with reporters yesterday, Agriculture Minister Navin Chandarpal said sugar achieved a record production of 331,000 tonnes, the highest production since nationalization in 1976. Three estates, Blairmont, Wales and Uitvlugt achieved their highest production in any year.

According to the Minister, the Agriculture Improvement Programme has shown good results with sugar yields increasing from 6.8 tonnes per hectare in 2001 to an estimated 7.3 tonnes per hectare in 2002.

He noted that exports increased from 252,000 tonnes in 2001 to 282,000 tonnes in 2002, an increase of 11.9 percent. Export earnings also increased, from US$108 million in 2001 to US$121 million in 2002.

Guyana also recorded a significant increase of 33.9 percent in sales to CARICOM countries and a first time sale of 7,500 tonnes to Haiti, out of a contract for 10,000 tonnes.

It is expected that GuySuCo will break even financially for the year 2002.

Meanwhile the strategic plan for the sugar industry is being advanced and the Skeldon expansion plan is proceeding steadily.

Minister Chandarpal reported that technical evaluation and shortlisting of tenders for the factory have been completed and a contract has been awarded for the preparation of the factory site. This will enable construction of the factory to commence this year.

GuySuCo also expanded its range of packaged products with Demerara Gold as its latest addition.

Of major concern to the industry and the Government is the erosion of the European Union preferential markets and the further threat posed by the challenge raised by Australia and Brazil to the Cotonou Agreement.

While sugar had a very successful year, the rice sub-sector experienced mixed fortunes.

Rice production declined from 322,000 tonnes in 2001 to 287,000 tonnes in 2002 a reduction of 10.7 percent.

According to Chandarpal, this reduction was mainly due to heavy rainfall at the end of the first crop, which resulted in great loss to farmers for the first crop and affected land preparation for the second crop. Financial problems faced by farmers and paddy bug infestations also contributed to the decline in production.

At the regional level, Guyana has put in place a CARICOM rice trade monitoring mechanism and an agreed Regional standard for rice.

Efforts are continuing to have CARICOM accept a Safeguard Mechanism for Rice. This is expected to protect rice- producing nations by adjusting the Common External Tariff according to market prices.

Meanwhile, the Government has developed a 10-year strategic plan for the rice industry aimed at increasing the competitiveness of the industry.

The strategy emphasises the need for research and more effective use of high yielding varieties, land preparation, drainage and irrigation, high quality seed preparation and distribution, pest control, field extension services, post harvest drying and storage facilities, efficient milling and marketing information and lobbying.

Guyana is also currently working along with other countries for changes to the ACP/ EU quota management systems.

In the area of drainage and irrigation, the Drainage and Irrigation Authority fully completed 36 out of the 46 rehabilitation projects with work in progress on the remaining ten.

According to the Agriculture Minister, these include the rehabilitation of 12 major structures in the primary system and 25 minor structures in the secondary system. Approximately 100 miles of drainage and irrigation drains and canals in various parts of the country were also rehabilitated. In addition the D&I Authority assisted Regional Administrations to maintain their D&I systems.

However, the country's D&I network experienced severe pressures in 2002. This was due to extreme weather conditions including periods of heavy rainfall. This resulted in loss of crops by farmers and reduced land preparation in some rice growing areas, for the second crop.

According to Minister Chandarpal, the National Agricultural Research Institute, the Pesticides and Toxic Chemicals Secretariat, the Hydromet Service and the Poor Rural Communities Support Services Programme have all reported significant progress and rate of project implementation.

The Organic Agriculture programme has been expanded, Pesticides and Toxic Chemicals regulations are expected to be in effect shortly. Five El Nino stations were installed to assist with monitoring water resources and floods and staff were trained in Meteorology.