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LISBON. A severe drought in Portugal will cause cereal production to fall by up to 70 percent this year, making it the worst grain harvest in two decades, the national statistics institute INE said Wednesday.

"The persistence of this situation has caused severe losses to agriculture. The harmful effects of this drought have been felt strongly in the cereal crop," it said in its monthly agriculture report.

Wheat production will fall by 70 percent, barley and oat production will fall by 65 percent, while rye production will be 30 percent less than last year's harvest, it said.

Crops have suffered serious stress from the lack of precipitation and would not recover now even if it rained over the coming weeks, the report added.

Portugal, a nation of just over 10 million people, is facing its worst drought in 25 years, with soem regions facing their driest year in a century.

Earlier Wednesday Environment Minister Francisco Nunes Correia said 72 percent of the country was suffering from "extreme" or "severe" drought" conditions as of May 15, up from 63 percent two weeks ago.

"There was a slight worsening of the situation," he told reporters. The lack of rain has cost farmers more than one billion euros (1.3 billion dollars) in damages and lost income, cost agriculture jobs, and led several municipalities have stopped watering parks.

Portuguese priests have led night-time religious processions to pray for rain in some small villages while the military has attempted cloud seeding to trigger rain with mixed results.

Copyright 2005 AFP & WeatherOnline