The Australian government has taken a significant step towards addressing concerns over price gouging in the supermarket sector. Led by former Labor minister Craig Emerson, the review focuses on the Food and Grocery Code of Conduct and its effectiveness in maintaining fair business practices in the industry.
Background of the Review
The probe, announced in October, comes against the backdrop of rising grocery prices and billion-dollar profits posted by major supermarket chains like Coles and Woolworths. Farmers have expressed their discontent, highlighting the disparity between what they earn and the prices consumers pay.
Scope and Focus of the Review
The review will assess the conduct of retailers and wholesalers towards suppliers, and consider making parts of the code mandatory. This is in response to the significant profits reported by supermarkets, raising questions about fair pricing practices.
Political and Economic Implications
Agriculture Minister Murray Watt has called for transparency in supermarket pricing. The review is part of the government’s broader strategy to tackle the cost-of-living crisis and ensure fair compensation for farmers. A separate Senate inquiry is also planned to investigate the market practices of supermarket giants.
Further Reading
For more detailed information on this development, you can refer to the following sources:
