A Libyan state grain buying agency is still in talks on international tenders to buy 50,000 tonnes of milling wheat and 25,000 tonnes of rice but payment issues due to political turmoil have prevented a deal, European traders said on Wednesday. The agency issued the tenders on January 14 and no purchases have yet been made, traders said.
Two governments allied to armed factions are vying for control of Libya four years after the toppling of former leader Muammar Gaddafi. The United Nations and Western powers do not recognise the administration which controls ministries in Tripoli. "I was offered payment in the tender from a bank in Tunisia which did not work out," one European grain trader said. "Another offer is being made with funds from a large bank in Tripoli." Another trader added: "They still want to buy but the payment problems are hindering a sale. A new payment offer is being made."
Wheat with 12 percent protein content was sought in the tender, they said. It is possible that a combination of 25,000 tonnes of wheat flour and 25,000 tonnes of wheat could be purchased, all for shipment to Tobruk, traders said. The white rice was sought in 25 kg bags with a maximum 5 percent broken grain content, they said. Libyan wheat purchases have been restrained in recent months, despite the country's large import requirements, with the conflict in the country disrupting ports and commercial activity.