In a concerning revelation, new research has exposed the exorbitant prices remote Indigenous Australians are forced to pay for everyday grocery items. A study by consumer advocacy group Choice found that a basket of nine essential products cost an average of $99.38 at stores in Indigenous communities in Western Australia and the Northern Territory. Shockingly, the same items averaged just $44.70 in capital city supermarkets across the country.
Everyday Essentials Out of Reach
The Choice study compared prices for staples such as flour, cheese, pasta, mince, fruits and vegetables from remote community stores to those in major supermarket chains in Australian cities. The findings paint a grim picture of the barriers to accessing affordable, nutritious food faced by Indigenous Australians in isolated areas.
According to the research, a kilogram of apples costs an average of $4.87 in capital cities, but a staggering $7.50 in a store visited on the Tiwi Islands. Choice’s Jarni Blakkarly described the price differences as “pretty astounding”, noting that in some cases, basic items like bread were completely unavailable, with shoppers forced to resort to frozen alternatives.
A Persistent Problem
This is not a new issue. A 2020 federal inquiry found that the supply of affordable, healthy food in many remote Indigenous communities was “tenuous” at best, a situation that has persisted despite multiple previous investigations. One of the key recommendations from that inquiry was for the government to establish real-time price monitoring across all remote stores, with the data to be publicly reported.
“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.”
– Bettina Cooper, financial counselor and Boandik woman
Calls for Government Intervention
Choice has called on the National Indigenous Australians Agency (NIAA) and the Australian Competition and Consumer Commission (ACCC) to explore capping prices on essential grocery items in remote Indigenous communities. While the ACCC does not set prices, Choice wants it to recommend that the federal government develop an affordable groceries policy that could include price maximums.
Bettina Cooper, an Indigenous financial counselor, agrees that price monitoring is a good idea but argues the government must go further and cap prices on essentials if it is serious about “closing the gap” between Indigenous and non-Indigenous Australians. She dismissed economists’ arguments that price caps would simply reduce grocery supplies.
Subsidies vs Price Caps
However, some experts are skeptical about the effectiveness of price capping. Professor Phil Lewis from the University of Canberra cautioned that artificially lowering prices below what suppliers are willing to accept would lead to scarcity and supply issues. Instead, he and others suggest targeted government subsidies, such as freight assistance schemes, could be a better way to make groceries more affordable in remote areas.
Professor John Quiggin from the University of Queensland advocated for programs that specifically reduce the cost of healthy foods and encourage nutritious diets, rather than blanket price controls. He argued this was a separate issue from the broader cost-of-living pressures facing all Australians.
A Complex Challenge
Ultimately, tackling the exorbitant food prices in remote Indigenous communities is a complex challenge that will likely require a multi-faceted approach. While price monitoring and caps may play a role, experts suggest a combination of targeted subsidies, freight assistance, and programs promoting affordable healthy eating are also needed.
As the spotlight shines on this latest evidence of the unequal access and costs of basic essentials for Indigenous Australians, pressure is mounting on the government and retailers to find sustainable solutions. For the families paying more than double their city counterparts for everyday groceries, relief cannot come soon enough.
