85c bread will hurt competition: Xenophon

Independent senator Nick Xenophon is worried Woolworth's 85-cent bread could spell a death blow to independent retailers.

He's calling for the reinstatement of anti-competitive price discrimination laws that were repealed in 1995.

Senator Xenophon acknowledged Woolworths' latest discounting gimmick of 85 cent loaves might seem appealing to consumers.

"In the long run it will cripple independent supermarkets who can't access bread at that price from suppliers," he said.

He's been a staunch critic of past discounting antics on milk and petrol from major supermarket chains and will introduce a private members bill on the matter to the Senate in November.

In 2011, a Senate inquiry investigating the impact of Coles selling $1 milk found the decision was a win for consumers and had not badly affected the Australian dairy industry.