Food supplies dwindle in Yemen after Hormuz closure

Concerns are rising over the availability and cost of food supplies in Yemen, which is already facing high levels of food insecurity, following the closure of the Strait of Hormuz and rising commercial shipping costs.

The Strait of Hormuz, one of the world’s most important waterways, was closed by Iran on 2 March after joint US-Israeli strikes on the country in late February.

Since April, Yemen’s government’s National Committee for Regulating and Financing Imports said it has been facing great difficulty in approving import requests submitted by traders. 

The committee added that this could spell dire consequences for supplies and eventually result in price hikes, making basic food items out of reach for ordinary citizens.

In response to this risk, the Ministry of Finance of the internationally recognised government instructed the Customs Authority to impose temporary countervailing measures of 20% of the value of imports of flour and bottled drinking water.

The measures took effect at the beginning of May and will remain in place for six months.

The decision comes in response to a memorandum from the Prime Minister’s office addressing ongoing food insecurity and efforts to ensure the stability of strategic reserves.

A Yemen-based retailer, Mohammed al-Nahari, told The New Arab that the quantities of goods he typically orders from wholesalers are no longer available in vast amounts, as a result of the regional tensions.

Another retailer, Bassam al-Wassabi, said some wholesalers have been refusing to fulfil full orders for basic goods due to the shortages and price increases.

In recent months, wholesalers have reportedly resorted to rationing items distributed to retailers, by around 30 to 50 per cent.

Imported beverages, cheeses and dairy products are the categories most affected, with their quantities having decreased to around 60 per cent.

Economic analyst Radwan Farea told The New Arab that the situation would have worsened and descended into a full catastrophe had the Houthis intervened in the conflict and closed the Bab al-Mandab Strait in support of Iran.

He said this would have caused an unprecedented surge in the price of commodities, transport and insurance premiums.

The head of the Aden Chamber of Commerce and Industry, Abubakr Baadbid, said that if the situation continues as it currently is, it will pose a real threat to commodity stocks.

Economic researcher Issa Abu Haliqa also told The New Arab that the closure of the Strait of Hormuz has also affected the agricultural sector in Yemen, with fertiliser and seed prices rising due to shipping firms having to alter their routes, and insurance costs doubling.

He also explained that the rise in global energy prices has contributed to inflation, disruptions to supply chains, and prolonged power outages.

The development comes as the International Rescue Committee reported earlier this year that Yemen is entering its most dangerous food security phase in years. 

The report said that around 18 million people are expected to be facing worsening levels of food insecurity at the start of this year, and that an additional one million will face life-threatening hunger.

In March, the UN warned the closure of the Strait of Hormuz was exacerbating the food crisis in several countries, including Yemen.

At the time, Jorge Moreira da Silva, the executive director of the United Nations office for project services (UNOPS), explained that the escalation in the region will have immediate consequences in Asia and Africa.