The early outlook for the 1997 cereal harvest remains satisfactory. The area sown to winter grains (mainly wheat and barley) for harvest in the summer of 1997 has increased by 16 percent to 105 000 hectares in response to better price incentives for farmers following liberalization of the cereal trade. Crop damage by winterkill is expected to be less than last year. Provided weather conditions remain favourable until harvest, 1997 output could exceed the 340 000 tons gathered in 1996.
For 1996/97 the cereal import requirement is now estimated to fall to about 310 000 tons. Over half of this amount is expected to be imported by traders on commercial basis. The balance is expected from a combination of food aid pledges and concessional credits. The counterpart funds from the sale of wheat, at market prices, received under concessional terms, will be used for a revolving fund to finance future commercial imports of wheat by the government. However, registered needy persons, notably in Yerevan and the earthquake zone, have received coupons entitling them to 250 grams of bread per person per day. In addition, WFP is targeting 250 000 refugees and other vulnerable persons with supplementary rations of basic food commodities as part of the on-going relief aid, Food-For-Work and soup kitchen programme. With a total 1997 requirement of 23 000 tons and carry-over pledges of 9 000 tons, the uncovered balance stands at 14 000 tons, valued at approximately US$ 8.5 million. As the relief food pipeline is only secured until mid-May, donors are urgently requested to come forward with additional support.