Highlights

• In March, there was a 13 percent decrease in the prevalence of households reporting inadequate food consumption, typical for the Ramadan season, attributed to social support and generosity. However, this decrease was not similar to the previous year's Ramadan, especially in areas under Sana’a-based authorities (SBA), due to the pause of WFP food assistance in the north. The prevalence of inadequate food consumption is higher by 34 percent in the north and 13 percent in the south compared to the previous Ramadan, reaching 45 percent and 48 percent, respectively, in March. Although severe food deprivation levels reached all-time highs in February 2024 in several governorates, including Hajjah, Al Jawf, Al Baydah, Amran, and Ma'rib, they remained critically high in March (between 25 and 32 percent), despite improvements during Ramadan.
• Despite the Red Sea crisis, there have been no disruptions in fuel imports so far. During Q1-2024, the total volume of fuel imported through Red Sea ports increased by six percent compared to Q4-2023 and by 29 percent year-on-year. This increase is mainly due to the ongoing encouragements from the authorities in Sana'a to use Al-Hodeidah port. They are offering benefits to traders, such as covering demurrage costs and providing advantageous customs rates. Additionally, fuel imports via the southern ports of Aden and Mukalla saw a 30 percent increase compared to Q4-2023 but declined by 11 percent annually. It is crucial to closely monitor the situation over the coming months, especially with the increased insurance costs for Yemeni ports.
• Despite the Red Sea events, the overall volume of food imports via all Yemeni seaports remained almost unchanged during Q1-2024 compared to the previous quarter but increased by 12 percent year-on-year. However, food imports via Red Sea ports saw a 14 percent decline compared to Q4-2023, despite a 24 percent increase year-on-year. This drop is mainly due to low storage capacity at the port, which has led to ships queuing offshore for offloading.
  Meanwhile, food imports via the southern ports of Aden and Mukalla nearly tripled compared to the previous quarter but were 17 percent lower than Q1-2023 levels. Despite these fluctuations, Yemen's reserve stock of food is expected to cover the country's needs for the next two to three months.
• General Food Assistance (GFA) remains paused in areas under the SBA, while WFP continues to support nearly 3.6 million people in areas controlled by the Internationally Recognized Government (IRG) with reduced rations. WFP's needs-based plan is only eight percent funded for the period from May to October 2024. The food security situation has significantly deteriorated for GFA beneficiaries who are no longer receiving assistance in the north, particularly in Hajjah, where the share of households with poor food consumption rose by 165 percent between the November and February. The highest prevalence of poor food consumption among ex-beneficiaries was recorded in Al Bayda (57 percent), Al Jawf (56 percent), Hajjah (49 percent), Amran (43 percent), and Raymah (38 percent) in February.
  Additionally, internally displaced persons (IDPs) are among the most affected by the assistance pause, with the share of IDPs experiencing poor food consumption increasing by 61 percent since the assistance pause, reaching 41 percent in February.
• In IRG-controlled areas, the Yemeni riyal depreciated by 25 percent against the US dollar year-on-year (YoY), reaching YER 1,652/USD by the end of March 2024. In the south, the exchange rate during the first quarter of the year is approaching the historical level recorded in late November 2021. This has led to unprecedented levels of local food and fuel prices by the end of Q1-2024. The main drivers of this trend include low foreign currency reserves, reduced crude oil exports, and remittance inflows. On the other hand, the exchange rate in areas under Sana’a-based authorities appreciated by three percent on annual basis, reaching YER 527/USD by the end of March. CBY-Sana’a introduced a new 100-riyal coin in late March 2024.
  Consequently, CBY-Aden has warned financial institutions against using the new coins and has asked all Yemeni banks to relocate their headquarters from Sana'a to Aden by early June 2024.
  This move could potentially have a negative impact on the existing liquidity in the north.
• Pump prices for petrol and diesel remained at elevated levels in IRG-controlled areas during March 2024, with a YoY increase of 26 and 17 percent, respectively. This is largely linked to the ongoing currency depreciation in the south. In contrast, pump prices for petrol and diesel have not changed in areas under SBA during March 2024, while they experienced a YoY decrease by four and 18 percent, respectively.
• In March 2024, the global FAO Food Price Index (FFPI) slightly increased by one percent compared to the previous month, while it remained eight percent lower than March 2023 level.
  It is worth noting that FAO Vegetable Oil Price Index exhibited an eight percent increase on monthly basis, reaching the highest level recorded over the past 11 months. This is largely due to seasonally lower outputs in leading producing countries, as well as increased global crude oil prices. In Yemen, vegetable oil prices saw a monthly rise between one to three percent, while it increased on annual basis by 36 percent in the south and by 17 percent in the north.
• In March 2024, the cost of the minimum food basket (MFB) reached its all-time high level in IRG-controlled areas for the second consecutive month, where the month-on-month increase is two percent and YoY increase is around 12 percent. This increase is primarily driven by the annual rise in the prices of sugar, vegetable oils, red beans, and wheat flour (up by 45 percent, 36 percent, eight percent, and six percent, respectively). Key drivers include the ongoing currency depreciation and increased fuel prices. All governorates in the south saw an annual rise in the cost of MFB, with the highest increase recorded in Ma'rib and Abyan. On the other hand, the cost of MFB did not change in areas under SBA during March 2024, while remaining eight percent lower than March 2023 level. Key traders anticipate increases in the procurement cost of food commodities starting mid-April due to increased insurance costs. However, they could still have to maintain similar levels of prices due to diminishing purchasing power of households and the state of economic slowdown.