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AAP
AAP
Keira Jenkins

Supermarkets to face inquiry over grocery prices

The pricing practices of major supermarket chains will be put under the spotlight in Queensland. (Luis Ascui, Joel Carrett/AAP PHOTOS)

Major supermarkets will face a Queensland parliamentary inquiry into the gap between the cost of groceries and what farmers are being paid for their produce. 

Premier Steven Miles announced the inquiry on Friday, following meetings with Coles, Woolworths and Aldi. 

'They were good meetings and they were concerned about the concerns that I was raising with them," he said.

"They all agreed to participate in that parliamentary inquiry."

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

Mr Miles said detailed scrutiny of supermarket chains was "fitting" for the kinds of concerns the government had heard from farmers and consumers.

"Transparency and scrutiny is a key first step in both addressing the way our farmers are treated as well as delivering cheaper groceries for Queensland families,' he said.

The terms of reference are yet to be finalised but a committee, which will be formed in the first sitting week of Queensland parliament, will run the inquiry. 

The federal government will review the Food and Grocery Code of Conduct, aimed at improving business standards in the sector.

Mr Miles has welcomed the review, saying he believed the code should be mandatory. 

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