Years of blockades and the depletion of natural resources have severely impacted prospects for economic development of the Gaza Strip. As of 2012, more than one million people in Gaza were living below the poverty line. This report presents the results of an early PCMMA of the wheat flour market system, which is very important in the local economy and local diets. The study considers the likely impact of two hypothetical but possible scenarios on the wheat flour market system. Because of low purchasing power and high food prices, poor households in Gaza are heavily reliant on aid agencies to supply most of their wheat flour needs. This report suggests two additional critical issues that need to be considered: price adaptations in case of increases in private demand and the purchasing power of the food aid beneficiaries. It recommends providing cash and/or vouchers for wheat flour to increase household purchasing power and creating strategic grain reserves in Gaza to control wheat flour prices.
