March 30 (Bloomberg) -- Egypt is building thousands of bakeries to ease a shortage of bread, Al-Ahram reported, citing government officials.

Bread production in Alexandria, Egypt's second-biggest province, will increase to 14 million loaves a day, from 10 million, the state-run newspaper said, citing Alexandria Governor Adel Labib.

The government also built 531 kiosks in Cairo to sell bread to the public, the newspaper reported, citing Cairo Governor Abdel Azim Wazir.

Some bakers buy flour from the government at 16 Egyptian pounds ($2.93) per 100 kilograms (220.5 pounds) and resell it on the black market at 260 Egyptian pounds, causing a shortage of subsidized bread, the government has said.

To contact the reporter on this story: Abeer Allam in Cairo on aallam@bloomberg.net

Last Updated: March 30, 2008 05:03 EDT