Bulgaria's largest wheat-producing region has been hit hard by drought. "Some 60 per cent of the maize fields in Dobrudja (Northeastern Bulgaria), known as Bulgaria's breadbasket, will not produce a harvest, while 25 per cent will yield between 500 and 1,000 kg/ha," said Dimitar Katrandjiev, chairman of the Union of Grain Farmers in Bulgaria, at a press conference on Monday.

"Farmers in Dobrudja, which was worst hit by the drought, want interest-free loans for sowing instead of subsidies. The loans could be paid back in grain to the state reserve in two years," said Katrandjiev. He added that the government could help the region by providing fertilizers on credit, extending the deadline for payment of VAT-taxes and building irrigation facilities in the region.

Credit may be offered to farmers in Dobrudja by late September or early October, said Katrandjiev. He specified that interest-free loans of between 15 and 20 leva for each dekar of arable land would be sufficient.

About four million tons of wheat are expected to be harvested this year, which is enough to guarantee the country's grain balance, stated deputy agriculture minister Boiko Boev at the same press conference.

This harvest will allow for an export of 700,000 tons of wheat. So far, 100,000 tons have been exported. Export of grain fodder will be between 250,000 and 270,000 tons. It will be mainly barley, which in Boev's view will not affect the grain-fodder balance.

Bread prices should remain unchanged over the next two or three months. If electricity prices grow by 10 to 15 percent, bread prices could rise by 0.01 to 0.015 leva/kg, said Ivan Ivanov, chairman of the Chamber of Bread Bakers in Bulgaria.