U.S. Senator Chuck Grassley (R-IA) took it to the Grocery Manufacturers Association in a letter yesterday, asking them why they haven't passed along the savings to consumers now that corn prices have gone down. Earlier this year GMA blamed ethanol and high corn prices as the reason they had to raise food prices, though today corn and other grain prices have fallen 50% from their spring highs.
"This indicates that while food processors were willing and able to immediately blame ethanol and rising corn prices for having to increase retail food prices, they won't be extending the same courtesy by lowering those prices with lower corn and oil prices," Grassley states in his Oct. 28 letter.
Now that grain and energy prices are down by half, "surely we can expect that the grocery manufacturers will pass on these savings to American consumers who are suffering from economic hardship," Grassley says.
Read his entire letter here: http://blog.foodpricetruth.org/wp-content/uploads/2008/10/grassley-letter-to-gma2.pdf