MONGOLIA* (10 June)

Farmers are reported to be preparing for the cropping season. Official estimates indicate that this year there is a need for about 61 000 tonnes of grain seed. The National Reserve Fund is expected to provide about 9 200 tonnes of grain seeds to farms with a clean record of bank loans. Taking into account seed stocks held by farms, the shortage of seed is estimated to be around 8 000 tonnes. Other inputs, such as diesel, were reported to be available but lack of credit for these inputs is anticipated to be a constraint.

Aggregate output of cereals in 1997, estimated at 240 000 tonnes, was about 33 percent below the average for the previous five years. Declining agricultural production and problems of economic transition continue to adversely affect the food situation of vulnerable groups. The tight food supply situation is likely to deteriorate until the next harvest in September.