December 26, 2007

Tight supply prompts EU to remove duties on imported grains

The EU has suspended import taxes on cereals including wheat and corn to stem price inflation caused by tight supply.

The lifting of duties excludes oats, buckwheat and millet for the marketing year ending June 2008, the Brussels-based European Commission said.

The EU became a net cereal importer in the 2006-07 season as due to reduced harvests and grain stocks being lower both in quality and quantity, the commission said.

Food-price inflation in the EU-13 rose to 3.8 per cent in October, the highest rate in years.