MPs to probe Iran conflict impact on UK food prices and supply

Fears over rising food prices and supply disruption linked to the Iran conflict will come under scrutiny by MPs next week, as pressure grows across the food chain.

The Environment, Food and Rural Affairs (EFRA) Committee will hold an evidence session on Tuesday 21 April at Westminster, examining how escalating geopolitical tensions could drive up costs, squeeze supply chains and strain relationships between retailers and suppliers.

The session comes amid heightened global uncertainty, with instability in the Middle East already influencing oil and gas markets — key drivers of fuel and fertiliser prices.

MPs will begin by questioning whether the food supply chain is operating fairly, particularly for smaller producers already grappling with rising input prices.

The Groceries Code Adjudicator (GCA), which enforces rules designed to prevent unfair treatment by supermarkets, will face scrutiny alongside the Agricultural Supply Chain Adjudicator (ASCA).

They tackle practices such as delayed payments, sudden cuts to orders and retrospective changes to contracts — all of which can leave suppliers exposed.

MPs will also probe whether regulators have sufficient powers to take on large, well-resourced companies, with recent high-profile cases involving major retailers and online platforms likely to be raised.

The Committee is expected to examine whether smaller suppliers are being adequately protected as inflationary pressures mount.

Farmers and producers are being squeezed from both sides — rising costs on one hand, and pressure from buyers to keep prices low on the other.

Industry leaders warn this imbalance limits the ability of suppliers to pass on increased costs, placing further strain on already tight margins.

Attention will then turn to the wider impact of the Iran conflict on the UK’s food system.

MPs will probe how disruption to global markets is affecting key inputs such as fertilisers, which are essential for crop production and closely tied to gas prices.

Any sustained rise in fertiliser costs could directly impact yields and output, particularly as farmers make key decisions during the growing season.

Higher fuel prices will also be a major focus, given their impact on everything from machinery use on farms to the transport of goods across the supply chain.

These pressures are already feeding through into production costs, raising concerns that further increases could push up food prices and reduce the availability of some products.

The impact does not stop at the farm gate.

As production becomes more expensive, retailers may be forced to pass on costs, contributing to food inflation and placing additional strain on household budgets.

There are also concerns that if UK production becomes less viable, the country could become more reliant on imports — exposing consumers to further volatility in global markets and reducing control over standards.

Food and drink is the UK’s largest manufacturing sector, underlining the importance of maintaining a stable and resilient domestic supply chain.

The Committee will also look ahead to the coming months, assessing the risk of further inflation and supply challenges as the year progresses.

With planting and production decisions being made now, continued uncertainty over input costs could have lasting impacts on output later in the year.

The session comes as external shocks — from geopolitical conflict to energy market volatility — place increasing strain on the UK’s food system.

Without effective oversight and support, there are fears that sustained pressure on farmers, suppliers and retailers could weaken supply chain resilience, reduce domestic production and push food prices higher.