El Niño-induced serious heavy rain and flooding since mid- March have disrupted harvesting of the important foreign exchange earner sugar cane crop in the eastern and western parts of the country. The rains have caused serious damage to all crops. Yields of the sugar cane crop in particular are likely to decline. Latest official forecasts indicate that the 1997/98 output could fall as low as 3.3 million tonnes, which compares to 4.25 million tonnes produced in 1996/97 and the historic low 3.3 million tonnes gathered in 1994/95. Harvesting of the 1998 rainfed (winter) paddy crop, the main cereal, has also been disrupted because of the rains. Early forecasts indicate that production should decline from 1997 average level, and that about 400 000 tonnes of rice imports will be required in 1998 (January/December) to meet consumption demand for this important staple in the population’s diet.