Woolworths and Coles should be banned from marking up grocery prices by more than 100 per cent of the amount they pay suppliers, and should be required to tell consumers how much farmers make for products every week, the federal government has been told.

In a submission to the Senate inquiry on price setting and the market powers of the supermarket giants, crossbencher Bob Katter has called for maximum 100 per cent mark-up rules and forced divestiture powers for the grocery sector.