Mr. Motoyoshi Noro, Charge d'Affairs of the Japanese Embassy in Accra, has stated that the agricultural sector is one of the target areas of Japan's co-operation in Ghana.

He stated that one of the most remarkable contributions to the agricultural sector by Japan is the "Small-Scale Irrigated Agriculture Promotion Project (SSIAPP).

Under this project and in collaboration with Ghanaian exporters, Japanese experts have been supporting small-scale farmers to upgrade the farming system and reactivate farmers associations in Ashaiman in the Greater Accra Region and Okyereko in the Central Region.

Noro was presenting 10,600 metric tonnes of white Thailand and Australia milled rice worth ?16 billion under Japan's food aid for the fiscal year 2002.

He stated that as one of Ghana's major development partners, Japan was willing to continue to support the people in the agricultural sector.

Noro stated that the other aspect of the Food Aid programme is the "Counter-Value Fund".

Under this scheme, the local currency proceeds generated from the sale of rice purchased with the grant are to be accumulated as Counter-Value Fund by the Ghanaian authorities.

He stated that the fund will then be utilised for the implementation of social development projects, including projects related to increased food production, adding, "Japan's Food Aid is multi-purposed and programmed."

Mr. Joseph A. Yamoah, Chief Director, Ministry of Finance, who received the donation stated that the occasional shortfalls in food production, especially cereals, as a result of irregular rain fall pattern, high incidence of pests and diseases, bush fires, occasional flooding and high rate of post-harvest losses, the Japanese government decided to provide this type of grant assistance annually with the primary objective of procuring thousands of tonnes of rice under a programme dubbed Kennedy Round One (KR-1) to meet the shortfalls in rice production locally.

He stated that proceeds from the sale of the consignment are deposited in an account with Bank of Ghana and utilised for financing projects mutually agreed upon by the two countries, adding "these projects are usually in the agricultural and social sectors in accordance with the provision in the Exchange of Notes."