Twenty-three organisations representing Scotland's retail, food production, manufacturing and distribution sectors have urged First Minister John Swinney to abandon plans for a statutory food price cap, warning that the measure could push up costs for consumers.
The business groups, whose sectors collectively employ around 300,000 people in Scotland, submitted a joint letter to Swinney on 27 August.
Their intervention comes ahead of the Scottish Government's Programme for Government on 1 September, as ministers consider proposals for a statutory cap on some food and drink prices.
The coalition argues that imposing controls on retail prices would fail to address underlying costs across the food supply chain and could lead to higher prices elsewhere.
Signatories to the letter include the Scottish Retail Consortium, Scottish Grocers' Federation, Association of Convenience Stores and Federation of Independent Retailers.
They are joined by organisations representing farmers, food manufacturers, wholesalers, logistics operators and other businesses across the food supply chain.
The groups described a statutory food price cap as "unnecessary" and "ineffective", arguing that restrictions on selected retail prices could have consequences for the cost of other household goods.
"The effect will be to increase, rather than decrease, the cost of household goods," they said.
The coalition also argued that competition between grocery retailers already puts pressure on businesses to keep prices down.
For supermarkets and suppliers, the eventual design of any price-control mechanism could have implications for pricing strategies, margins, product ranges and supplier relationships.
Key questions include which products would be covered, how any price limits would be determined and how long restrictions would remain in place.
The industry intervention comes as UK food inflation continues to ease.
Office for National Statistics data showed that prices for food and non-alcoholic beverages rose by 1.3% in the 12 months to July 2026, down from 1.7% in June. The annual rate was the lowest since September 2021.
The slowdown in food inflation does not mean grocery prices are falling. It means they are increasing more slowly than before.
The business groups argue that pressure on food prices is driven by costs incurred throughout the supply chain before products reach supermarket shelves.
Their letter highlighted production, refrigeration and distribution costs, alongside fertiliser, fuel and energy expenses. The organisations also pointed to supply-chain disruption and conflicts in Ukraine and Iran as factors affecting businesses.
Employment and packaging taxes were identified as additional cost pressures across farming, food manufacturing, refrigeration and distribution.
"A statutory cap would not address the root causes of elevated food prices," the coalition said.
Rather than imposing price controls, the organisations are calling on Scottish ministers to work with retailers and suppliers to reduce costs across the food supply chain.
They want the government to withdraw the proposed cap, arguing that competition in the grocery market is already helping to constrain prices.
The industry intervention puts pressure on ministers to clarify how any price-control mechanism would work and how its potential impact on retailers, suppliers and consumers would be assessed.
For Scotland's grocery sector, the next step will be the Scottish Government's Programme for Government, due to be published on 1 September.
The announcement should provide further indications of how ministers intend to proceed with the proposed food price cap.
"Scottish business groups urge Swinney to scrap food price cap" was originally created and published by Retail Insight Network, a GlobalData owned brand.