A NSW parliamentary report has recommended restrictions be put on the major supermarkets to stop farm produce being sent to waste for minor visual defects or being slightly misshapen.
The inquiry into food security found the cosmetic standards were creating significant food waste.
The committee chair, Independent MP Alex Greenwich, said it was unacceptable during a cost-of-living crisis.
"We've got perfectly good food that doesn't meet some of the cosmetic standards of the big supermarket chains being forced into waste because, you know, a zucchini is bent the wrong way or a banana is the wrong colour," he said.
According to figures from the Department of Environment, Australians waste the equivalent of 312 kilograms of food per person annually, costing the economy an estimated $36.6 billion a year.
At the Sydney Markets, the largest fresh fruit and vegetable wholesale market in Australia, veteran vendors who sold to the supermarkets and the public said food was thrown out by the tonnes if the shape or size was not perfect.
"When you come here and see all that wastage … it's crazy, it shouldn't be happening," Zayde Naman from Sydney Imperial Deliveries said.
Mr Naman said consumers and supermarkets needed to address the high standards that were causing food wastage.
"I do feel like the standard's pretty high … at the end of the day as long as it cuts right, and it tastes right, they can put it on a plate," he said.
The report into food security recommended the government impose restrictions on the major retailers that would limit the amount of produce rejected and sent to waste.
"We need to make sure there is a clear framework, that there are policies that are enforceable to make sure that there's perfectly good fruit and vegetables not going to waste," Mr Greenwich said.
"It will drive down the cost for fruit and vegetables making it more accessible for more people."
Farmers fed up
NSW Farmers said the long-standing practice meant large volumes of produce did not even leave the farm out of fear of getting rejected, as growers did want to pay for freight on produce that would end up in the bin.
"They just knock it back because it doesn't meet their standards but there is nothing wrong with that fruit," NSW Farmers horticulture committee chair and Orange-based apple and cherry grower Guy Gaeta said.
Mr Gaeta said the practice was also creating unrealistic expectations from consumers about what fresh produce looks like.
"We don't make them in a factory you know… we don't mix them like baking a cake, it's mother nature," he said.
In a statement, Woolworths said it worked closely with growers to meet consumer demand in a sustainable way.
"Our specifications are adaptable and respond to the quality, quantity and availability of produce in market, which is affected by seasonality, supply and weather," a spokesperson said.
Coles did not respond to a request for comment.
