Britain urges EU action on food 

British finance minister Alistair Darling will urge the European Union to extend the suspension of import tariffs on grains and re-think its biofuels policy to help ease soaring food prices in the 27-nation bloc.

In a letter to his European counterparts, Darling will say the EU must ensure its policies are not unnecessarily inflating the cost of food.

European Union finance ministers meet in Brussels on May 14 and rising global food and energy prices are expected to be high on the agenda. 

"The EU has a clear responsibility to play a full role in the international community's collective efforts to address the consequences of spiralling food prices by tackling the causes," Darling wrote.

"It is unacceptable that at a time of significant food price inflation the EU continues to apply very high import tariffs on many agricultural commodities."

The European Union agreed in December to temporarily drop import prices on all cereals except oats, buckwheat and millet as a response to tight supplies and soaring prices.

Darling said the tariff suspension should be extended and import tariffs on other agricultural commodities should be cut.

He also called for an end to direct payments to EU farmers and the phasing out of all elements of the Common Agriculture Policy that are designed to keep agricultural prices in the region above world market levels.

"Barriers and distortions in the global food market increase volatility and stifle the incentives to increase supply to match demand," he wrote.

Soaring food prices have sparked political discontent in Europe as they have in other parts of the world, putting pressure on politicians to act.

Wheat prices have risen by around 150% over the past two years, fuelled by dry weather in key growing areas, competition from biofuels and growing demand from emerging Asia.

"We need a close examination of the direct and indirect effects of EU biofuels policy, including a full assessment of its effects on food prices," Darling said.
 
Britain created a government agency to oversee the use of biofuels last November, headed by Ed Gallagher, the former chief of the Environment Agency. Gallagher will produce his interim findings by the end of this month.