(TOYAKO) - European Commission chief Jose Manuel Barroso said Monday he would propose the creation of a one billion euro (1.57 billion dollar) EU fund to fight hunger and help farmers in poor countries.

"I'm going to propose a one billion dollar euro facility to support agriculture in developing countries, to help poor farmers in developing countries," he told reporters on the sidelines of the Group of Eight summit.

The funds would be drawn from unused European Union funds from its 2008-09 budget and will bring the total EU and European Commission funding aimed at helping developing countries fight hunger to 1.8 billion euros, he said.

The announcement came as the G8 leaders of the world's richest countries were poised to meet in the northern Japanese spa resort of Toyako for a summit dominated by soaring food and fuel prices that have sparked a global crisis.

G8 leaders, including US President George W. Bush, France's President Nicolas Sarkozy and German Chancellor Angela Merkel have stressed the urgent need for the summit to take steps to combat the dual-crisis.

The steep rises in food prices have hit poor nations hardest and sparked protests and even unrest in countries across the world while stoking global inflation and threatening world economic growth.

The EU fund would focus on boosting agricultural production in developing countries by boosting farmers' access to seeds and fertilisers, "possibly through credits (and) food assistance, including nutritional support," Barroso said.

The fund, if approved by the EU, would also aim to boost agricultural production and allow for safety net measures for the most vulnerable," the EU commissioner said.

"This is a very important offer," he said.

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