THE Australian Food and Grocery Council wants a carbon import levy on food products from countries which do not have a carbon trading scheme or tax.

The AFGC said an Australian Carbon Pollution Reductions Scheme had to ensure Australia's food and grocery manufacturing sector's international competitiveness is maintained.

Chief executive Kate Carnell said an emissions trading scheme which failed to include international emitters could be a real threat to the packaged food and grocery industry.

"The sector has annual sales and service income in excess of $70 billion and employs more than 200, 000 people - almost one in five of the nation's manufacturing workforce," Ms Carnell said.

"Of all Australians working in the industry, half are based in rural and regional Australia, while the processed food sector sources more than 90 per cent of its ingredients from Australian agriculture."

In absence of a global agreement the AFGC supports the development of a carbon import levy, which would allow Australian industry to compete with imports not taxed for related carbon.

Alternatively the AFGC wants a $5 to $10 a tonne price on carbon to allow the sector to maintain its competitiveness while reducing its carbon emissions.