L 270/78 Official Journal of the European Union 21.10.2003 COUNCIL REGULATION (EC) No 1784/2003 of 29 September 2003 on the common organisation of the market in cereals THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and the third subparagraph of 37(2) thereof, Having regard to the proposal from the Commission Having regard to the opinion of the European Parliament (%), Having regard to the opinion of the European Economic and Social Committee (2), Having regard to the opinion of the Committee of the Regions (%), Whereas: (1) The operation and development of the common market for agricultural products should be accompanied by the establishment of a common agricultural policy to include, in particular, a common organisation of agricultural markets which may take various forms depending on the product. (2)  The common agricultural policy pursues the objectives set out in the Treaty. In order to stabilise the markets and ensure a fair standard of living for the agricultural community in the cereals sector, it is necessary to provide for internal market measures comprising, in particular, an intervention system and a common import and export system. (3)  Council Regulation (EEC) No 1766/92 of 30 June 1992 on the common organisation of the market in cereals (%) has been substantially amended several times. In consequence of further amendments it should be repealed and replaced in the interests of clarity. (4)  Regulation (EEC) No 1766/92 provides that a decision upon a final reduction in the intervention price for cereals to be applied as from the 2002/2003 marketing year onwards is to be taken in the light of market developments. It is important that prices on the internal market rely less on guaranteed prices. It is therefore (') Opinion delivered on 5 June 2003 (not yet published in the Official Journal). (3 0J C 208, 3.9.2003, p. 39. (}) Opinion delivered on 2 July 2003 (not yet published in the Official Journal). ( O] L 181, 1.7.1992, p. 21. Regulation as last amended by Regulation (EC) No 1104/2003 (OJ L 158, 27.6.2003, p. 1). (10) appropriate to halve the monthly increment in order to improve market fluidity. The introduction of a single intervention price for cereals has led to the accumulation of large intervention stocks of rye as a result of the lack of sufficient disposal outlets on internal and external markets. Rye should therefore be excluded from the intervention system. The intervention agencies should be able, in special circumstances, to take intervention measures suited to those circumstances. In order that the required uniformity of intervention systems may be maintained, those special circumstances should be assessed and the appropriate measures determined at Community level. In view of the special market situation for cereal and potato starch it may prove necessary to provide for production refund of such a nature that the basic products used by this industry can be made available to it at lower price than that resulting from the application of the common prices The creation of a single Community market for cereals involves the introduction of a trading system at the external frontiers of the Community. This trading system complementing the intervention system and including import duties and export refunds should, in principle, stabilise the Community market. The trading system should be based on the undertakings accepted under the Uruguay Round of multilateral trade negotiations. The export refund system is to be applied to processed products containing cereals to enable them to participate in the world market. In order to monitor the volume of trade in cereals with third countries, provision should be made for an import and export licence scheme with the lodging of a security to ensure that the transactions for which such licences are requested are effected. For the most part, the customs duties applicable to agricultural ~ products under the World Trade Organisation (WTO) agreements are laid down in the common customs tariff. However, for some cereals, the introduction of additional mechanisms makes it necessary to adopt derogations.