Grocery grace as subsidy helps bring down outback costs
Remote indigenous communities will benefit from price caps as a subsidy that helps reduce exorbitant prices is extended to more stores.
Families in Bidyadanga and Yakanarra in the Kimberley, Kiwirrkurra in the Gibson Desert and Jigalong in the Pilbara have access to cheaper food and everyday items from an additional 15 remote markets.
The federal government’s Low-Cost Essential Materials Subsidy Program will cover 30 essential items, including tinned vegetables, tinned fruit, toilet paper and nappies, at these “country stores” in Western Australia.
Prices of essential goods in remote communities often increase due to the costs associated with transporting goods to the areas.
The program lowers the cost of items in line with the prices people pay in urban areas.
For Tania Baxter, chief executive of the Bidyadanga Aboriginal Community, whose community is the largest remote Aboriginal community in Western Australia, owning and operating a remote store comes with additional challenges.
“The freight cost and limited purchasing power of an independent store means the cost of stock in the store is higher than that of the supermarket giants,” he said.
“Many of our clients are on pensions and low income, so they face financial stress just to afford housing, electricity and basic household needs.”
Ms. Baxter said the store, which provides funding for employment opportunities and community programs, can help families access affordable essentials without negatively impacting the business.
Approximately 225 remote stores can participate in the expanded program; 113 are already signed up, offering customers savings of up to 50 percent off in-store prices.
Indigenous Australians Minister Malarndirri McCarthy has called for more shops to get involved.
“For too long, remote First Nations communities have paid too much for food and other basic needs compared to people living in major cities,” said Senator McCarthy.
Approved stores can order stock from a list of 30 essential items to meet the needs of the community.
“Our government knows that cost-of-living pressures are felt most keenly in our remote communities, which is why our Low-Cost Basic Needs Subsidy Program is so important,” said Marion Scrymgour, Special Envoy for Remote Communities. he said.
Election 2024 research found that some residents living further away are paying twice as much for groceries as urban consumers.
