The European offices of two of the world's largest grain traders, Cargill and Bunge have been investigated by European Union (EU) officials as part of an investigation of suspected price-fixing – although no charges have been laid against either company as yet.

The investigation is being conducted due to EU concern over restrictive trade practices that may be artificially impacting on price.

Issues to do with food pricing have been under the microscope throughout Europe as concerns over food security and soaring food costs dominate the news.

Raids were conducted in Italy at the offices of both Cargill and Bunge's Italian subsidiary.

Both companies have said they will cooperate fully with any investigations.

If found guilty, under EU law, the companies can be fined as much as 10pc of annual sales.