AZERBAIJAN (8 August)

The country has requested international donor assistance to combat the effect of floods in July which caused loss of life, destroyed 7 000 homes and did substantial damage to infrastructure, including the power grid, roads and bridges and crops. The government has estimated that as a result of the floods, crops were partially or totally damaged on 15 percent of the grain area and 1 percent of the cotton area. Other crops have also suffered damage. In addition, average crop yields are expected to remain low due to shortages of improved seed, machinery and spare parts, little fertilizer application and the deterioration of the irrigation infrastructure. Other disincentives to production include the slow pace of land privatization and the irregular payment of the members of the state farms. Nevertheless, the area sown to cereals for harvest in 1997 increased by 80 000 hectares or 13 percent. By 8 August, 1 million tons of wheat and barley had been harvested, 33 000 tons more than at the corresponding time last year. Indications are that output may be somewhat larger than last year when official data indicate that almost 1 million tons were harvested and actual production was about 10 percent higher than officially registered as output from state farm land is diverted for private use.

Privatization of the State Bread Corporation and liberalization of the wheat/bread production and distribution has led to a sharp increase in commercial imports of cereals by the private trade. In the first four months of 1997 commercial imports of flour have doubled in respect of the same period in 1996. In this period, some 123 000 tons were imported commercially, by the private trade, in addition to about 75 000 tons of wheat. In 1997/98 the cereal import requirement is estimated at less than 535 000 tons of cereals, mainly wheat. The bulk of this will be imported commercially but the vulnerable populations will continue to require targeted relief.

At present, WFP assists 155 000 persons, mainly internally displaced people accommodated in public buildings and camps, with supplementary food rations. The WFP relief food pipeline is covered until early 1998 and WFP�s outstanding needs to mid 1998 are 5,000 tons of food valued at U.S. $ 2.7 million.