Poor communities in the hills and mountains of far and mid-western Nepal face a serious threat to food security due to this year's poor winter harvest, says a UN body. Along with bad crops resulting in a 20-40 percent fall in production, rising food prices in these areas where poverty and malnutrition are very high has triggered this painful situation, states the latest crop situation update prepared by the World Food Program-Nepal. The whopping drop in winter crops - mainly wheat and barley - because of hailstorms and insufficient rains is expected to further erode affordability, creating shortages and further price hikes in the coming days, the report cautioned. The WFP-Nepal has said that it urgently needs US$ 42 million to extend food assistance to two million people in Nepal who have been hit hard by food deficits and soaring prices. "We are urgently in need of an additional US$42 million to meet the needs of the existing WFP-Nepal programs which provide essential food assistance to two million people,' WFP Country Representative Richard Ragan said. Ragan said that the WFP may also request an "as yet to be determined amount' that will allow it to expand initiatives aimed at improving food security for poor people. He said that the impact of crop losses will fall on the price which is already going up alarmingly. "It is certain that crop losses can only increase pressure on wheat prices causing them to rise even faster in what is an already unaffordable environment for many people,' Ragan added. The report, which was prepared after surveying 40 districts of the region, estimated that the situation was likely to become more severe from June when households run out of their meager wheat stocks harvested in April and May and become dependent on the market for their food supply. Baitadi, Bajura, Dadeldhura, Darchula, Doti, Mugu, Dailekh and Rolpa are the districts which witnessed a massive drop in the production of winter crops. However, wheat production is expected to be normal in the central and eastern regions including the tarai because of adequate rains. Responding to the growing food shortages and rising prices, the government on Wednesday banned the export of rice, paddy and wheat. The Food and Agriculture Organization (FAO) recently forecasted a decline in world wheat stocks to 146.8 million tons in 2008 from 161.8 million tons in 2007. The FAO report has further cautioned that wheat stocks could hit a 30-year low this year, partly driven by the worst drought in Australia, the major grower of wheat. Posted on: 2008-05-01 21:00:08 (Server Time)