2.6.77 Official Journal of the European Communities No L 136/13 COUNCIL REGULATION (EEC) No 1158/77 of 17 May 1977 amending Regulation (EEC) No 1418/76 on the common organization of the , market in rice THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parlia- ment (1), Whereas Council Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice (?) provides for a system of derived intervention prices the level of which must be fixed in such a way that the differences between them reflect the dispari- ties which, given a normal harvest, arise under natural conditions of price formation on the market, and that the forces of supply and demand may adapt freely on that market ; Whereas there is a surplus on the market in rice in Italy and a deficit in the other Member States; whereas experience has shown that in such a situation freedom of movement within the Community is not influenced by a system of derived intervention prices but by the ratio between the target price and the inter- vention price ; whereas the system of regional prices should be abolished and replaced by a single interven- tion price; - Whereas there should be sufficient difference between the target price, which determines the level of protec- tion of the Community market, and the intervention price to ensure market fluidity and to balance surpluses in production areas with requirements in consumer areas ; whereas, to attain this objective, the target price should be established on the basis of the intervention price, taking into consideration, in addi- tion to the element reflecting the cost of transport between the area having the largest surplus and that having the largest deficit, and also husking costs, a market element reflecting the difference, in the production area with the largest surplus, between market prices and the level of the intervention price following a normal harvest ; Whereas the threshold price fixed must be such that in Duisburg the selling price of an imported product corresponds to the target price; whereas the factors required to determine the threshold price should therefore be specified, (') OJ No C 93, 18. 4. 1977, p. 11. () OJ No L 166, 25. 6. 1976, p. 1. HAS ADOPTED THIS REGULATION : Article 1 Articles 2, 3 and 4 of Regulation (EEC) No 1418/76 are hereby amended to read as follows : ‘Article 2 The marketing year for all the products listed in Article 1 shall begin on 1 September and end on 31 August of the following year. Article 3 1. Before 1 August of each year, the following shall be fixed for the "Community for the marketing year beginning during the following calendar year : — a single intervention price for paddy rice, — a target price for husked rice. 2. Each of these prices shall be fixed for round grain rice of a standard quality. 3. The prices mentioned in paragraph 1 and the standard qualities mentioned in paragraph 2 shall be determined in accordance with the procedure laid down in Article 43 (2) of the Treaty. Article 4 1. The single intervention price shall be fixed for the Vercelli intervention centre, which is at the centre of the area in the Community with the largest rice surplus, at the wholesale stage, goods in bulk, delivered to warehouse, not unloaded. It shall apply for all the intervention centres esta- blished for the Community. 2.  The target price shall be fixed for Duisburg, the centre of the area in the Community with the largest rice deficit, at the same stage and under the same conditions as the single intervention price. 3. The target price shall be determined : — by adding to the single intervention price a market component for paddy rice and the milling costs for processing that rice into husked rice, less the value of the by-products,