The Australian government has announced a plan to cap the prices of essential grocery items in remote communities to match those in major cities. The initiative, part of the latest Closing the Gap statement, aims to address food insecurity and affordability in regions where prices for necessities can be more than double those in urban areas.
Price Disparities in Remote Communities
Prime Minister Anthony Albanese will formally outline the plan, which will see the prices of 30 essential products locked at city rates across more than 76 remote stores. The government has also committed to increasing warehouse capacity to improve supply chains and maintain stock levels.
A recent investigation by consumer advocacy group CHOICE found that basic grocery items in remote First Nations communities cost significantly more than in capital cities. For example, a nine-item grocery basket that averaged $44.70 across major supermarkets in urban areas cost $99.38 in remote stores.
The price differences for individual products were also substantial. Apples, for instance, were $4.87 per kilogram in capital cities but cost $7.50 per kilogram in the Tiwi Islands store in the Northern Territory, and $9.10 per kilogram at the West Daly store.
Government’s Plan and Key Products
To reduce these price gaps, the government will set price caps on staple products, including:
- Flour, rice, bread, and pasta
- Milk, beef, chicken, and eggs
- Canned tuna and several fruits and vegetables
- Toilet paper, nappies, toothbrushes, toothpaste, and menstrual products
The specific stores and implementation timeline have yet to be confirmed.
Food Prices and Inflation Trends
Nationally, food prices have risen 3% over the past year, according to the Australian Bureau of Statistics. The cost of fruit and vegetables remains 6.3% higher than a year ago, while meat, seafood, bread, and cereals have increased by 2.5%. The only major grocery category to decline was dairy products, which dropped by 1.2%.
Albanese emphasized the health implications of food insecurity, linking it to conditions such as cardiovascular and kidney disease. The government hopes that by addressing high grocery costs in remote areas, it can improve both affordability and access to nutritious food for affected communities.
While the announcement signals a significant policy shift, details on how price caps will be enforced, which stores will participate, and how supply chains will be managed remain unclear. The government is expected to provide further updates in the coming weeks.
