According to data released last week, while the annual Consumer Price Index came in at 3.5 per cent, vegetable retail prices fell by 4.1 per cent over the same period.
It marks the second month where annual CPI for vegetables fell markedly.
In the 12 months to June, vegetable CPI dropped 4.2 per cent, compared to an increase to inflation of 3.8 per cent.
However, this has resulted in a fall in returns for many vegetable growers across the country, including Congupna’s Dhami Singh.
Mr Singh produces various vegetables including broccoli, zucchinis, eggplants and chillis and on-sells these to supermarkets through agencies.
He estimates he is now receiving 10 to 15 per cent less return when selling vegetables to the supermarkets.
While returns have been diminishing for some time, he said the issue had got worse in recent times.
It comes as Australian supermarkets recorded increases to their profits to well over $1 billion.
Adding to the challenge for Mr Singh is many of the costs associated with growing vegetables are rising, exacerbated by the ongoing war between the US and Iran.
“Fuel has gone up, fertiliser has gone up, it’s all out of the pocket,” Mr Singh said.
Despite the falling vegetable prices, Mr Singh said he was not surprised to hear reports of falling vegetable demand amid the cost-of-living pressures faced by many families
He attributes this to processed products such as tinned food often being cheaper.
Ausveg, the peak body for Australian vegetable growers, said it was critical Australians increased their consumption of locally grown vegetables and returns to growers were lifted.
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