The worst drought in 60 years that has left millions of people in Yunnan province lacking drinking water has also fueled forest fires and threatened local energy supplies, CRI says.

Direct agricultural economic losses are estimated at 6.5 billion yuan (694 million euros). The province has earmarked 389 million yuan (41.5 million euros) for drought relief, said Zhou Yunlong, head of the provincial water resources bureau.

So far some 4.25 million people and 2.42 million livestock, and 733 hectares of crops have been able to receive temporary relief from water deliveries to the region.

All in all some 4.9 million residents and 3.34 million livestock are trying to cope with the water shortage.

Two firefighters were injured when they fought fires in the suburb of the provincial capital of Kunming on Sunday, the report says.

Right now every precaution is being urged to prevent accidental fires.

The industries in the region are also struggling to keep operations running. According to Wang Jinxian, an official with the Huaneng Lancang River Hydropower Co Ltd, the drastic drop in water level could effect the plant.

More than 2 million hectares of crops, 81.7 percent of the total, have been effected, CRI says. About 534,600 hectares have been destroyed. Next summer's grain output is expected to be more than 40 percent lower than normally.

According to weather forecasts, there is still no rain in sight for the area.