ARMENIA* (9 August)

The outlook for cereal production in 1996 remains unfavourable following dry winter conditions, extensive winter kill and hail damage in May. Aggregate cereal production in 1996 is estimated at about 215 000 tons, some 32 percent less than in 1995. To meet cereal consumption requirements in 1996/97, estimated at 580 000 tons, cereal imports of some 350 000 tons are estimated. Commercial imports by the private sector are increasing, but about two- thirds of this requirement will still have to be provided on concessional credit or as food aid.

The country has made considerable progress in restructuring the economy and controlling inflation. The economy is beginning to recover slowly but a proportion of the population still cannot afford an adequate diet. As a result, targeted distribution of supplementary food rations continues to be necessary. Some 400 000 people have been targeted for relief food assistance by humanitarian organizations. Of this population, WFP is providing food rations to 250 000 people (the most vulnerable groups, refugees and internally displaced people) through distribution of dry rations, small scale food-for-work projects and soup kitchens. Existing stocks and pledges in the pipeline will allow WFP distribution for just two months in the winter period; unless more pledges materialize, the October distribution will be cancelled and rations will be distributed in November and December only. WFP�s needs until the end of the current UN Appeal period (May 1997) total nearly 15 000 tons.