With almost two thirds of NSW in drought, hardworking families are feeling the pinch at the sup- ermarket checkout, Primary Industries Minister Ian Macdonald said yesterday.

Mr Macdonald said the area of NSW in drought had increased slightly over the past month - with 66.2 per cent (up from 65 per cent) of the State officially drought-declared.

A further 18.5 per cent of NSW is marginal (down from 20.9 per cent), while only 15.3 per cent of NSW is satisfactory (up from 14.1 per cent).

“Farmers are basing their hopes on more spring rains to help them through the season,” he said.

“Only the eastern third of NSW received reasonable rainfall in July and unfortunately this rainfall was just not widespread or significant enough to make a real dent in the ongoing dry conditions for much of regional NSW.

“The drought is not only hitting rural areas hard, city dwellers are paying the price at supermarkets for staples such as rice.

“Water availability in irrigated agriculture areas like the Murray Valley is extremely low - this has a cumulative effect, affecting prices from the farm gate to the checkout.”

Mr Macdonald said while farmers remained optimistic about this year’s crop prospects, above average spring rainfall would be needed to see them through to a reasonable yield.

“The good news is that our cropping sector is in a much better position than this time last year, however, we really need good rain before the end of August,” he said.

“Farmers have a few other challenges on their hands as well, with widespread frosts limiting pasture growth, however, grazing cereals have provided valuable feed.”

Mr Macdonald said farmers could also lose crops to locusts.

“If warmer temperatures arrive early, we could see locust hatchings as soon as early to mid September,” he said.

He urged farmers to notify officials of any locust activity.