KARNI CLOSURE CAUSING FOOD SHORTAGE IN GAZA

UNCLAS JERUSALEM 000906 SIPDIS SENSITIVE SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/GREENE/WAECHTER; NSC FOR ABRAMS, DORAN, MUSTAFA E.O. 12958: N/A TAGS: PHUM PREF EAID ECON KWBG SUBJECT: KARNI CLOSURE CAUSING FOOD SHORTAGE IN GAZA ¶1. (SBU) The West Bank/Gaza Country Director for the World Food Program (WFP) Arnold Vercken told ECON and USAIDOffs March 3 that the continued closure of the Karni crossing was rapidly depleting food stocks in Gaza and leading to substantial price increases. He noted that, between January and March 2006, Karni had been closed for 30 days, as compared with a total of 56 days for all of calendar year ¶2005. He shared WFP estimates, based on March 2 information from the PA Ministry of National Economy, that stocks of basic food commodities in Gaza will last four days and UNRWA's (United Nations Relief and Works Agency) emergency stocks will last six days, thereby providing enough food for a total of ten days. He shared the WFP Vulnerability Analysis and Mapping Unit's recent Market Monitoring report that listed food commodity reserves in Gaza and the number of days that it would cover: -- Wheat flour, 10 days -- Sugar, 4 days -- Rice, 12 days -- Oil, 11 days -- Pulses, 39 days ¶2. (SBU) Given the closures of Karni to date in 2006, he stressed that food shortages had led to price increases and distortions in the local Gaza market. Wheat flour prices have increased by 15 percent, sugar by 25 percent, and infant milk formula is also in short supply. (Note: The report did note that 10 percent of the wheat flour price increase was due to an increase in price of wheat flour at its origin due to the strengthening of the U.S. dollar against the New Israeli Shekel and increased fuel prices for transport. End note.) The report also noted that the poorest and the most food insecure households have the lowest capacity to store food and will be forced to absorb the sharp price fluctuations of basic commodities. WALLES