Food Groups Urge Bush To Suspend Sugar-Ethanol Tariff
The Hill:
An assortment of food groups, from soft drink makers to chicken producers, urged President Bush to suspend an import tariff on Brazilian sugarcane ethanol as a way to reduce demand for the corn-based variety produced domestically.
The competition for corn is increasing due to higher ethanol production requirements mandated by Congress in the 2007 Energy Independence and Security Act, the groups argue. The result is an “unforeseen and severe feed grains inflation,” they said in a letter to Bush.
The energy act calls for the production of 9 billion gallons of ethanol this year. Corn is used as a sweetener and as feed grain for livestock, in addition to its growing role in the nation’s transportation fuel mix.
Thirty-six associations and companies and anti-tax groups signed the letter, including the Grocery Manufacturers Association and Coca-Cola. Full article.
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