Australia's food prices are expected to rise if an irrigation ban is imposed in the Murray Darling Basin as the drought continues.
The Murray Darling river system generates more than 40 percent of the nation's income generated from agriculture and grazing, according to the Murray-Darling Basin Commission's Web site.
Australian Prime Minister John Howard on Thursday announced that if there is no rain in the coming weeks, irrigation systems in the region will be shut off and water will only be available for cities and towns.
The Australian Bureau of Agricultural and Resource Economics, an Australian government economic research agency noted for its professionally independent research and analysis, has said milk and dairy prices could go up, Australian Broadcasting Corporation (ABC)radio reported Friday.
Industry group AusVeg has also warned that the price of fruit and vegetables could triple in price if irrigation supplies are cut off and production is reduced.
Earlier, Australian Federal Opposition Leader Kevin Rudd said the crisis in the Murray-Darling river systems shows Australia must make dealing with climate change its top priority.
"It's not the Howard Government's fault in itself, I mean Mr. Howard can't make it rain, I understand that," Rudd was quoted by ABC radio as saying.
"But for half a decade or more the Government has been in a state of denial on climate change and water," he said.