THE Government has bowed to pressure from farmers and opposition parties to create an "enforcer" to resolve disputes between supermarkets and their suppliers.

Ministers have finally accepted the Competition Commission's recommendation to install an ombudsman, after failing to secure agreement from a majority of grocery retail giants on a voluntary scheme.

Supermarkets had warned the move could lead to price rises. Consumer affairs minister Kevin Brennan insisted the Government was wary of placing extra costs on businesses.

The Competition Commission made the recommendation last year following a lengthy investigation into the market.

The commission said supermarkets should foot the estimated £5 million cost of running the new watchdog.

Westcountry MPs and the region's farming leaders have been outspoken in calling for the Government to implement the plan in full. But last night critics claimed ministers were dithering by launching "further consultation" when what was needed was "decisive action".

St Ives MP Andrew George, chairman of the Grocery Market Action Group, said: "This is welcome, as far as it goes.

"However, Government ought to implement the commission's recommendation without delay.

"Supermarkets have been posting record profits in a recession. They have, of course, worked hard to resist this measure but there will be quiet jubilation amongst British farmers and in the developing world."

The Government insisted the delay was needed because ministers were "mindful of placing unnecessary costs onto business especially in a period of economic difficulty".

Mr Brennan said: "The Government wants to ensure that the Groceries Supply Code of Practice can be independently enforced and have the power to hear anonymous complaints."

Ministers have said they do not expect the watchdog to have a "significant impact" on the price of food in shops.

Environment Secretary Hilary Benn said: "The new ombudsman will help strike the right balance between farmers and food producers getting a fair deal, and supermarkets enabling consumers to get the high quality British food that they want, at an affordable price."

National Farmers' Union president Peter Kendall welcomed the decision to back an ombudsman, which he said was a victory for common sense and the consumer.

"Although the consultation period means that farmers and growers will still have to wait for the introduction of an ombudsman, we can at last see light at the end of the tunnel," he said.

"It is vital that when the new strengthened code comes into force, we have a proactive and robust enforcement mechanism in place as soon as possible."

Earlier this month shadow environment secretary Nick Herbert pledged that a Conservative government would introduce a supermarket ombudsman to curb what he described as "the abuses of power" by major retailers.

Yesterday the Tories' said the Government's decision was "too little, too late".

"This is a step forward but this belated announcement of further consultation is not the decisive action that consumers or the industry need," Mr Herbert said.