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Hungary to sue EU over corn intervention price

Hungary's government is filing suit over a European Union decision on the intervention price for corn, government spokeswoman Emese Danks said in a statement yesterday.

The intervention price is used by governments to buy produce from farmers at a minimum rate in case of market disturbances. The EU limits the use of such intervention to ensure farmers from all countries are competitive. Hungary claims the EU discriminated against Hungarian corn farmers when setting the requirements to use such a price on October 18. “The ruling changed quality requirement for corn intervention in such a way that it causes substantial and unjustified competitive disadvantage to Hungarian farmers,” the government's statement said. Prime Minister Ferenc Gyurcsány's government will take the matter to the European Court of First Instance, the EU's second- highest court in Luxembourg, according to the e-mailed statement. Hungary will file the lawsuit shortly, the statement said. (Bloomberg)