Aussies could end up paying more for bananas as supermarkets use the recent North Queensland floods as an excuse to price gouge consumers, an MP has warned.
State Nationals MP Gurmesh Singh, who represents banana growers as the member for Coffs Harbour on the NSW mid-north coast, said retail giants often used bad weather as a cover for jacking up prices.
‘My fear was that they were going to use this weather event to put prices up beyond what was required,’ he told Daily Mail Australia.
‘It’s on us all to be vigilant for price gouging when it comes to supermarkets.’
Mr Singh, who is also the deputy leader of the Nationals in NSW, is speaking out after Coles and Woolworths warned that flooding in North Queensland would likely to affect the supply of bananas on produce shelves.
‘They shouldn’t be using supply as an excuse anymore,’ the Opposition MP said.
While Coles declined to rule out price rises, Woolworths has promised that shoppers won’t be paying $14 a kilo like they did in 2011 when Cyclone Yasi devastated the region.
Supermarkets are now selling cavendish bananas at more than double the wholesale price, sparking concern about the recent floods restricting supply.
Aussies could end up paying a lot more for bananas as supermarkets use the recent Queensland floods as an excuse to put up prices (pictured is a shopper at Cobar in western NSW)
North Queensland is still cleaning up from flooding in towns like Tully and Cardwell (pictured), which are major banana producers
North Queensland is still cleaning up from flooding a fortnight ago in towns like Tully and Cardwell, which are major banana producers.
But Mr Singh, a third generation Coffs Harbour farmer whose father was a banana grower, said this month’s Queensland floods, from a tropical low, had not devastated banana crops like cyclones Larry and Yasi in 2006 and 2011.
‘In the immediate aftermath of the rain in Queensland, supplies were restricted for about a week until the roads opened,’ he said.
‘The roads opened up again, about a week ago, and I would think by next week, supplies are right back to normal.’
Mr Singh, who was a member of the NSW Farmers’ horticulture committee before being elected to Parliament in 2019, said the recent Queensland floods had not created a severe shortage of banana supplies to justify putting up prices.
‘There might have been a short-term increase in prices felt by consumers but from next week or so, we should be seeing normal prices and my sources in the banana industry tell me there’s a lot of supply so prices should be really, really good,’ he said.
Bananas also grow faster in summer, making a supply shortage less likely, even after a flood.
‘This time of year, summer, bananas are growing quickly and there’s a lot of supply,’ Mr Singh said.
State Nationals MP Gurmesh Singh, who represents banana growers in Coffs Harbour on the NSW mid-north coast, claimed that supermarket giants often used bad weather as a cover for jacking up prices
A Coles spokesman declined to rule out future pricing but suggested supply should return to normal next week.
‘We are working closely with our Queensland suppliers to get bananas to the rest of the country as supply routes begin to re-open,’ he told Daily Mail Australia on Monday.
‘Our customers can expect to see more bananas on our shelves across the country over the coming week.’
A Woolworths spokeswoman told Daily Mail Australia flooding had cut off transport supplies.
‘While most banana farms have avoided the worst of the floods, growers in northern Queensland have struggled to get their bananas to the rest of the country after their key transport routes were cut off by floodwaters,’ she said.
‘Stock is now starting to get through on the roads from north Queensland, however supply across the market will take a little while longer to catch up after these transport disruptions.
‘Most stores are continuing to receive banana deliveries every day, however the amount delivered will be less than usual, so customers may see reduced availability depending on when they shop.’
Mr Singh hopes supermarkets won’t resort to unfairly putting up prices and pointed out that supply shortages weren’t as bad as the retail giants were making out.
‘I’m hoping that the supermarkets won’t do that,’ he said.
NSW Nationals MP Gurmesh Singh says the the recent Queensland floods (pictured) had not created a severe shortage of banana supplies to justify putting up prices
‘They can if they choose to do but the reality is they shouldn’t be using supply as an excuse anymore.’
Coles is selling red-tipped bananas for $5.90 a kilogram.
Woolworths is selling individual cavendish bananas for 76 cents each.
But this is nowhere near the $14 a kilo level reached in 2011 in the aftermath of Cyclone Yasi.
‘Customers can rest assured that we anticipate banana prices to stay within the realm of what they would normally see throughout the year – we are not expecting anything close to the highs reached after Cyclone Yasi in 2011,’ a Woolworths spokeswoman said.
A 15kg box at Coles is selling for $60, working out at $4 per kilo.
But on wholesale markets, a 15kg box of cavendish bananas is selling for $37.50 in Adelaide, on average, working out at $2.50 a kilo, Australian Banana Growers Council data from last week showed.
In Brisbane, wholesales prices are $22.50 for a 15kg carton, working out at $1.50 a kilo.
Queensland accounts for 94 per cent of Australia’s banana production, compared with just 4 per cent in NSW.
