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.