A recent report by consumer advocacy group Choice has shed light on a significant disparity in grocery prices between Australia’s capital cities and remote Indigenous communities. In some of these remote communities, residents are paying over twice as much for basic food items like flour, cheese, and milk compared to their urban counterparts. The high costs are placing further strain on already vulnerable Indigenous communities where food security and affordability are persistent issues.
The data, gathered from community stores in the Northern Territory and Western Australia, has sparked debate over potential policy solutions, including price caps on essential items. Advocates are now calling for stronger governmental intervention to address these inequities and ensure access to affordable, nutritious food in remote areas.
The Choice report highlights stark contrasts in the cost of essential groceries across remote communities and urban centers. A modest basket of nine basic items — including flour, tasty cheese, apples, milk, penne pasta, beef mince, teabags, carrots, and Weet-Bix — was found to cost an average of $99.38 at remote stores, compared to $44.70 in capital cities across major retailers like Woolworths, Coles, Aldi, and IGA.
This disparity was most pronounced in the West Daly region of the Northern Territory, where the price for the same basket reached $110.82. In contrast, urban shoppers paid as low as $4.87 per kilogram of apples while residents in remote locations like the Tiwi Islands were charged $7.50 per kilogram.
The high cost of groceries is not a new issue for these communities. For years, remote Indigenous populations have faced inflated prices for food, a problem exacerbated by logistical challenges in supplying these regions. Choice’s Jarni Blakkarly highlighted that affordability is not the only issue — accessibility to fresh food also remains a challenge. At one store, the only bread available was frozen hotdog buns, underscoring the limitations of supply.
In response to the findings, Choice has urged the National Indigenous Australians Agency (NIAA) and the Australian Competition and Consumer Commission (ACCC) to consider capping prices on essential groceries. Although the ACCC does not have the authority to set prices, Choice believes the watchdog could advocate for federal policies that promote affordable pricing strategies in remote communities.
Bettina Cooper, a financial counsellor and Boandik woman, emphasized that capping prices could provide immediate relief for families struggling to cover their basic needs. Cooper, who works at Mob Strong Debt Help, advocates for more robust interventions, arguing that the government must prioritize “closing the gap” over corporate profit margins. “We need to be closing the gap, not supporting profit-making, while our First Nations brothers and sisters in remote communities are struggling to feed their family,” she said.
While there is broad support for intervention, economists and some policy experts remain divided on whether price caps would effectively address the issue. Critics argue that capping prices could reduce supply, as suppliers may avoid regions where profit margins are too low.
Phil Lewis, an economist and the head of the Centre for Labour Market Research at the University of Canberra, has voiced concerns that price caps could result in further scarcity in remote stores. According to Lewis, “If you actually try and reduce the price below what suppliers are willing to supply at, they’ll stop so much. And there’ll be scarcities arising in the shop.” His concerns reflect a long-standing belief that market dynamics must be respected to ensure consistent supply.
Other experts suggest that a more effective approach might be through government subsidies and transportation assistance programs, which have already shown promise in some Australian states. For instance, Professor John Quiggin from the University of Queensland advocates for increasing freight assistance for remote communities, arguing that targeted subsidies could reduce the cost of essential groceries without disrupting supply chains.
Quiggin pointed to Queensland’s Remote Communities Freight Assistance Scheme as a potential model. The scheme subsidizes the cost of transporting food to remote regions, which reduces prices for consumers without impacting retailers’ profit margins. “We need programs that reduce the cost of healthy food [in remote areas] and encourage people to have healthy diets,” Quiggin noted, emphasizing the importance of sustaining access to nutritious foods.
Supporters of this model believe that it can mitigate logistical costs, thereby lowering grocery prices without interfering with market supply. Additionally, they argue that such schemes promote healthier eating habits by making fresh produce and other nutritious items more affordable.
The high prices in remote areas are not only affecting residents’ wallets but also their health and wellbeing. The research highlights how inflated costs on essential groceries contribute to the increased consumption of cheaper, less nutritious food options, which are often more readily available. This shift can have serious health consequences for residents, contributing to higher rates of diet-related illnesses in remote Indigenous communities, including obesity, diabetes, and cardiovascular disease.
Professor Nitika Garg, a consumer behavior expert from the University of New South Wales, explained that high grocery prices in remote regions often force people to prioritize less healthy, cheaper foods. Garg’s research suggests that price caps could offer some relief, though she remains cautious about the feasibility and potential impact on supply.
In Indigenous communities where average incomes are already low, with many relying on government support payments, the pressure to make unhealthy food choices becomes even greater. The ongoing struggle to access fresh, affordable food highlights broader systemic issues in Australia’s approach to food security and health for its Indigenous populations.
The issue of food security in remote Indigenous communities has a long history. In 2020, a federal inquiry found a “tenuous” supply of affordable, nutritious food in many of these areas. This inquiry also recommended real-time price monitoring across remote community stores, which would allow for public tracking of grocery costs and improved accountability. However, the recommendations have yet to be implemented.
Advocates argue that the current situation reflects a failure to address previous inquiries’ findings, which identified similar issues but led to minimal change. The lack of sustained progress has sparked renewed calls for accountability and more effective interventions, particularly from the NIAA and ACCC.
Real-time price monitoring could serve as a preliminary step toward understanding and addressing the root causes of inflated grocery prices in remote areas. By making this data publicly available, policymakers could better understand trends in price changes and identify when and where to implement targeted interventions.
Amid the debates around price caps and subsidies, there is growing consensus that a multifaceted approach may be necessary to tackle this complex issue. Legislative changes, such as enforcing mandatory price monitoring and reporting for remote stores, could provide transparency and accountability.
Price caps remain a controversial option, but many advocates argue that they could be effective if paired with other measures, such as transportation subsidies or financial support for remote retailers. Engaging with Indigenous leaders and community representatives is also critical to ensure that any policy changes reflect the specific needs and preferences of those affected.
Bettina Cooper expressed frustration with economists’ criticisms of price caps, pointing to the lived experiences of those in remote communities. “I’d like to see them go and sit in a remote community and try and feed their family on a Centrelink payment and then have that conversation with them,” she said. Cooper’s perspective underscores the urgency and human impact of high food prices in remote Indigenous communities.
