Heavy rainfall since early July has caused severe flooding in eastern parts of the country. It is estimated that some 130 000 hectares of agricultural land have been washed out in the worst hit localities, and the heavy rains have led to crop lodging and harvest delays throughout a larger area. The latest official forecast of the 1997 cereal crop in June, before the heavy rain and flooding, put output at nearly 7 million tons. Although, it is still too early to accurately assess the full extent of the damage, indications are that losses could be in the region of between 500 000 tons to 1 million tons. The Government has reported that it does not expect any significant shortfall in the domestic market overall, as the country has sufficient reserves to offset a reduced harvest. However, it is reported that some provisional measures are being made should any significant increase in imports be required. In addition, the Government is organizing compensation for farmers affected by the disaster to ensure production will be maintained in the coming year.