EU to restore customs duties on cereal imports

16 October 2008 15:39  [Source: ICIS news]

PARIS (ICIS news)--The EU will reintroduce customs duties on cereals imports as a result of a sharp decrease in the price of the product since the end of September, European Agriculture Commissioner Mariann Fischer Boel said on Thursday.

 

“Given the interdependence of the markets for various cereals and the rapid impact of changes in the price of one cereal on other cereals, customs duties are being reintroduced simultaneously on all cereals,” said the European Commission.

 

The Commission said the restoration of cereals duties “would not have any disruptive effect on the European market or any significant impact on prices” and were being introduced to “avoid undue risk” when EU public intervention buying restarted from November.

 

Growing demand for cereals for biofuels and adverse weather conditions caused supplies to tighten and prices to surge last season, forcing the Commission to suspend tariffs on most grain imports at the start of the year, a decision that was extended to the 2008/2009 (July-June) season. 

 

Part of the reason for the price decrease is the significant improvement of this year's cereals harvest compared with last year's poor offering - the Commission estimating the EU's 2008 production at 306m tonnes, 19% higher than in 2007.

 

The exact date for the tariffs to take effect is uncertain but they are expected to come into force in around a week.

 

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By: Philippa Jones
+44 20 8652 3214

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