The report by University of NSW Professor Frank Zumbo, based on OECD statistics, found that despite historically low inflation, Australia's food prices had risen by more than 40 per cent in the past decade.

IAG Bexley owner Jag Rawat said the price rises were caused by factors including the market power of Coles and Woolworths, proposed new planning laws and unscrupulous retailers.

Mr Rawat, 45, made available to the Leadera copy of a independently commissioned report on growth and competition in retail planning.

The Wakefield Planning Report said the concentration of major retailers was more than 50 per cent in most food sectors. "Work in the UK suggests that a market dominance above 25 per cent would normally be sufficient to raise potential concerns,'' the report said.

Mr Rawat, who has a masters of business administration from the US, said when he bought the IAG Bexley store in August it was run down. He has since been building it up.

"Despite the pressures of a young family, I still manage to go the markets to source the freshest and best value produce,'' he said.

"We don't sit in an ivory tower with teams of buyers manipulating prices.

"For example, the majors source fruit from overseas which does nothing to boost the Australian economy.''

Mr Rawat pointed to the Federal Government's failed Grocery Choice website as proof the public interest was being short-changed and that flaws in proposed changes to NSW planning policy could see the majors compete with small independent grocers in smaller centres.

"If you look at it on a square metre of floor-space basis, we employ a lot more people than Coles or Woolies - on average twice as many people per dollar spent,'' he said.

"This will change if the NSW Government has its way.''

Frank Ventra, manager of Freshworld Sylvania, said buying from the markets, bulk buying and savvy consumers kept his business competitive.