NEW YORK (AP) – Sen. Charles Schumer said Sunday that rising demand for the corn-based fuel additive ethanol is contributing to a spike in milk prices and called for lifting the 54-cent-per-gallon tariff on ethanol imports.

Schumer, D-N.Y., said rising milk prices have been caused by, among other factors, a nationwide increase in demand for ethanol. The same corn used for ethanol is used in animal feed.

He called for the immediate lifting of the tariff on foreign ethanol imports to increase the supply of the federally mandated fuel additive, reduce pressure on the corn market, and bring down milk prices.

“Reducing the pressure on the corn market is a quick, commonsense, way to bring down milk prices across the board without hurting our regions dairy farmers,” Schumer said. “No family should every have to do without milk but unfortunately, many families are now being forced to make that terrible choice.”

According to the Consumer Price Index, the cost of dairy and related products rose 14 percent nationally between November 2006 and November 2007, the most recent figures available.

Speaking in front of a Manhattan supermarket, Schumer said the price of milk increased 35 percent in New York City between January 2006 and January 2007.

In Manhattan, for example, he said the average price of a gallon of milk is now $4.52, up from $3.52 a year ago.

Schumer said his plan would not hurt Northeastern dairy farmers because lifting the ethanol tariff would reduce their costs.

AP-ES-01-13-08 1255EST