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