Severe localized rain and hail storms in June caused significant damage to infrastructure and some damage to crops.
In 1996 a further 16 000 hectares of land was leased by the state to farmers. In response to good price incentives (the price of imported wheat has fluctuated at around U.S.$ 220- 260 per ton throughout the year), and more development assistance to the agricultural sector, (including short term production credit), the area sown to grains for harvest in 1997 expanded by 9 percent to 201 000 hectares. That sown to winter grains, mainly wheat, rose to 104 000 hectares and spring grain plantings also increased. However, poor weather in the early spring and localized crop damage in the summer are expected to result in lower yields than in 1996. Official expectations are that the 1997 harvest of cereals and pulses may not equal the good 1996 harvest of 328 000 tons.
The wheat/bread distribution chain has been (largely) privatized. The Government has retained control over a number of flour mills and subsidized bread (U.S.$ 0.36 per kg, three- quarters of the market price) is available for eligible populations at state outlets. In 1997/98 the domestic cereal utilization is estimated at about 635 000 tons, including 440 000 tons for direct human consumption and the balance for seed, feed and other uses. Provided the 1997 cereal harvest approaches 295 000 tons, the cereal import requirement is estimated at 340 000 tons. The commercial import capacity has increased following price liberalization and the need for programme food aid has diminished. In 1997/98 the food aid requirement could fall to 60 000 tons, compared to 105 000 tons delivered in 1996/97. Against this requirement 39 000 tons have already been pledged.
After falling very steeply in 1991-1993, GDP has grown slowly but steadily since 1994. Not all people have benefited from the reform process, least of all those populations living in temporary accommodation since the 1988 earthquake, single- parent households and other vulnerable groups including elderly pensioners, refugees and individuals living in state institutions. The Government estimates that 400 000 people (out of a resident population of about 3 million) remain vulnerable. However, the outstanding humanitarian needs are no longer considered to constitute an emergency situation.
Some 300 000 people continue to be in need of ongoing targeted food assistance. Of these WFP is targeting 220 000 vulnerable persons, including refugees and IDPs, with supplementary rations of basic food commodities as part of the on-going relief aid and Food-For-Work programme. WFP requirements to mid-1998 are 20 000 tons and the uncovered balance stands at 16 500 tons, valued at approximately U.S.$ 7.7 million. As the pipeline for relief food is only secure until September, donors are urgently requested for additional support.