The 1996 cereal and pulse harvest is estimated officially at 635 000 tons, higher than earlier estimated, despite mixed growing conditions. The areas sown to winter grains (mainly wheat and barley) for harvest in 1997 are also estimated to have increased by about 50 000 hectares despite persistent shortages of seed. Consumption of maize-meal has increased sharply in response to price liberalization of bread. The government estimates 1996/97 cereal import requirement at 300 000 tons of wheat against some 460 000 tons imported mainly as food aid last year. The commercial imports of wheat flour by the private sector have increased rapidly and are expected to cover market needs. Food aid will continue to be required to meet the needs of the most vulnerable groups. So far, food aid allocations, including those carried forward from last year, amount to 53 000 tons. In 1996/97 the country will receive direct budget support from the EC instead of food aid for monetization. Disbursement is conditional to the implementation of reforms in the agricultural sector, particularly land reform and privatization of the cereal/bread processing and distribution chain. In view of severe budget constraints, inadequate social security, very low official salaries and widespread unemployment, the number of food-insecure people in need of assistance is estimated at 600 000-700 000, mainly internally displaced, host families, mothers with young infants, pensioners, the disabled and inmates of social institutions.