VZCZCXYZ0007
OO RUEHWEB

DE RUEHJM #0906 0621756
ZNR UUUUU ZZH
O 031756Z MAR 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0698
INFO RUEHXK/ARAB ISRAELI COLLECTIVE IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RUEHBS/USEU BRUSSELS IMMEDIATE

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