Northern parts of the country are most affected although the Italian confederation of agriculture (CIA) warns that the situation for southern and central areas is 'far from comforting'.

In some parts of northern Italy it has not rained for more than two months and the level of the river Po has fallen dramatically.

'At risk are a lot of fruit and vegetable crops including cherries, pears, plums and peaches,' warned CIA.

Producers' representative organisation Coldiretti also warns of possible sizing problems in cherries because of the lack of water, although it points out that the situation in Emilia Romagna – Italy's main stone-fruit production area – is not yet a 'red alert'. Rain did fall in the area nearly two weeks ago, but was not nearly enough to even penetrate the surface of scorched soil in orchards.

The organisation is warning of losses across all sectors of agriculture totalling e1bn.

These latest problems come on top of frost damage to crops in the winter and spring which has been calculated to have caused e500 million of damage and CIA is warning that coupled with drought conditions, 2003 could become one of the worst on record.

The problems are all the more serious given the 'black' year growers suffered in 2002, said CIA, because of inclement weather conditions which had already put a strain on many businesses as well as stress on trees.

The organisation is calling on agricultural co-operatives and other organisations to act to improve irrigation systems, water infrastructure and examine the sector's efficient use of water.