Supermarkets under scrutiny over food costs

Supermarkets have come under scrutiny over the price of food at the checkout. (Diego Fedele/AAP PHOTOS)

Queensland's premier is calling for tougher penalties for retailers found to be price gouging, as he prepares to grill supermarket bosses about rising grocery costs.  

Steven Miles said he hoped to get answers on Thursday about the discrepancy between what farmers say they're getting for their produce and what consumers pay at the checkout. 

He said stories from farmers about how the supermarket giants were dealing with them when negotiating supplier agreements were "disturbing".

"I've heard from farmers who aren't sure if they want to keep doing it because they're struggling to make ends meet as their own costs have have gone up," he said.

"They're sick of being treated that way by the supermarkets."

A file photo of Steven Miles
Premier Steven Miles wants harsher penalties to deter businesses from price gouging.

Supermarket chains, particularly Coles and Woolworths, have come under scrutiny after recording large profits while consumers struggle with cost of living pressures.

Mr Miles said he would also meet wholesaler Metcash, which owns IGA, and Aldi to "see what they need to be operating in more communities". 

"Clearly one of the problems here is the sheer amount of power in the hands of two supermarket chains," he said.

"That matter would predominantly rest with the Australian government but I think they need to think carefully about whether there is sufficient competition both in the buying and selling of fresh food."

The premier's comments come after the federal government announced a review of the Food and Grocery Code of Conduct, aimed at improving business standards in the sector. 

Mr Miles welcomed the review.

"My personal view is that (the code) shouldn't be voluntary, it should be mandatory," he said.

"There should be tougher penalties that make people think twice about price gouging."

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