Darling urges EU action to counter food inflation

By Christina Fincher

LONDON (Reuters) - Chancellor Alistair Darling will urge the European Union on Monday 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.