The European Union is poised to drop import tariffs on all cereals except oats in an attempt to contain food inflation after another poor European harvest.

"I hope this proposal will help facilitate cereals imports from outside the EU and reduce tensions on European grains markets," Mariann Fischer Boel, farm commissioner, said yesterday. "We have seen a modest harvest in Europe and high prices both at home and on world markets. Border protection for cereals is relatively low but import duties still apply to certain cereals which are key to assuring EU market balance."