Import duties on cereals to be reintroduced

The European Union is set to reintroduce import duties on cereals bought internationally in the wake of a price slump that has eliminated the need to boost supplies.

The EU had scrapped duties on cereals in January to ease tight supplies, which had driven prices to record highs. However, the Commission is proposing to re-introduce the tariffs as wheat prices have been on a steady decline since then - down by about 50 per cent since September 2007.

The Commission said a draft regulation was put to the management committee of the Common Organisation of Agricultural Markets.

This will now have to be formally adopted by the Commission and will enter into force on the third day following publication in the EU's Official Journal.

For years, Europe had produced more cereals than it needs, leaving the EU to buy up the excess and discourage more planting in order to stop prices collapsing and farmers being driven out of business.

But Europe became a net importer of cereals last year amid a global commodities boom, driven by surging demand in fast-growing developing countries including China.

The Commission said that the duties would cover durum wheat, high quality common wheat, rye, sorghum and maize.