Libya Taps Into Wheat Reserves to Overcome Flour Shortages

Libya's internationally recognized government said on Wednesday it had started tapping into its strategic wheat reserves to ensure bread supplies and overcome what it called a "flour crisis".

The government works from the east of the north African nation having fled the capital Tripoli, where a group called Libya Dawn has seized control and backs a rival government not recognized by world powers.

Fighting between armed groups loyal to each side has disrupted oil exports as well as imports of goods by road and ships.

A Libyan state grain buying agency made no purchase in an international tender for 50,000 tons of milling wheat because of payment problems due to the political turmoil, European traders said on Wednesday.

Some ports such as Benghazi supplying much of the east of the country with wheat and other goods have stopped working due to fighting. Volumes are down at other ports such as Misrata as well.

"The ministry of economy and industry is assuring the citizens that it will overcome a flour crisis in Libya after it was decided to release the strategic reserves," it said in a statement.

It said it would distribute more than 200,000 bags of flour.

There is no sign of bread shortages in Libya but the country suffers from overconsumption of subsidized bread. Some buyers go several times a day, rejecting any bread baked more than one hour earlier.

But in recent weeks some bakeries in Tripoli and Benghazi have closed or produce less.