Benghazi agency buys 50,000 tons of wheat

By Hadi Fornaji.

Tripoli, 17 October 2013:

The government grain-purchasing agency in Benghazi is reported to have invited tenders for the supply of . . .[restrict]50,000 tons of wheat flour.

European traders told the Reuters news agency that the tenders must be submitted by this coming Monday. The invitation is believed to have come from Matahan agency which operates out of both Benghazi and Tripoli. It is responsible for the bulk of the country’s grain purchases.

One concern will be the risk premium that Libya may have to pay any supplier. At the end of last year, in one publicised deal, it was revealed that Matahan had had to pay $395 a ton c&f (cost and freight) for 30,000 tons of soft wheat, whereas Jordan, with more expensive shipping costs had paid only $378 a ton for a higher quality wheat.  Traders supplying Libya have claimed delayed settlements, as well as enduring political instability are behind the premiums. [/restrict]