THAILAND (18 November)

Official reports indicate that El Niņo weather related problems are expected to significantly reduce production of major cash crops, especially rice and sugar, over the next eight months. The reports indicate that approximately 1.12 million hectares of crops have already been damaged by reduced rainfall in various parts of the country, whilst the water level in many dams has run low, causing concern for dry season cultivation. To reduce the possible impact of drought and dry weather, plans are being considered to encourage farmers to cultivate other crops, such as maize, soybean or cassava, than rice in second season as they are lower water demanding. An estimated 36 provinces have been affected, mostly in the north and the northeast. As a result of falling production, the 1998 second rice crop is expected to yield around 2.8 million tons compared with 4.55 million tons this year. In September the official estimate of the main rice crop was revised to 17.84 million tons from 18.18 million tons earlier. Conditions are expected to deteriorate into March and April next year, with continuing rainfall shortages

The country is expected to reach its export target for 1997. In the first 10 months this year, 4.08 million tons were exported. Although the volume of exports fell by around 6.6 percent revenues grew by 3.6 percent. Higher exports are partly due to increased demand by importing countries in preparation for anticipated food shortages due to El Niņo.