The food situation has continuously deteriorated in all parts of the country. The scarcity of basic agricultural inputs such as seeds, spare parts, vaccines and agrochemicals and the widespread incidence of pests, weeds and animal diseases, have resulted in low yields and productivity. The general performance of the agricultural sector, particularly in the 1996/97 season is cause for concern. The output of wheat and barley for the 1996/97 winter crop season is forecast at significantly below normal. With the implementation of the oil-for-food deal, U.S.$ 44.15 million are expected to be available over a period of 6 months for the agriculture sector. The control of crop pests and animal disease, the provision of quality seeds, spare parts, vaccines, drugs and pesticides should together increase crop and livestock production and improve somewhat the food supply situation. The oil-for-food deal also provides an allocation of U.S.$ 804.63 million (out of a total of U.S.$ 1.3 billion for humanitarian assistance) to purchase food for a period of six months. This will substantially improve the food and nutrition situation of the population. However, it is estimated that the allocation of U.S.$ 804.63 million for food will cover slightly above 50 percent of the estimated food import requirements.