UK TRADE WARY OF HIGHER EC GRAIN LEVY

  The European Community may decide to
  increase the cereals co-responsibility levy and extend its
  scope to cover cereal substitutes if the Commission's 1987/88
  farm price package is opposed by member states, Edgar Pye,
  vice-president of the British agricultural merchants'
  association UKASTA, said.
      At the moment the Commission is proposing the rate of levy
  remain unchanged at three pct - but Pye, addressing a feed
  manufacturers' dinner in Glasgow, said this could change if its
  controversial plans to cut cereal prices and introduce an oils
  and fats tax are blocked
      Pye said UKASTA would continue to fight the cereals levy
  "tooth and nail."
      However, a test case in the European Court of Justice
  contesting the legality of the current regulation applying the
  levy, which is being backed by the EC feed manufacturers'
  organisation FEFAC, was not now expected to be heard until the
  end of 1987, he said.
  

