A small business lobby group said it was shocked by comments made by the chief executive of the Office of Fair Trading, which suggest he is ready to see small suppliers squeezed out of business by supermarkets.
The Federation of Small Businesses (FSB) has written to John Fingleton asking for a meeting and clarification of his comments.
Mr Fingleton is reported to have said that he is ready to see small British suppliers squeezed out of business by powerful supermarkets so long as savings are passed on to consumers.
The FSB said that Mr Fingleton had also told some Sunday newspapers that he dismissed the idea that the supermarket Code of Conduct should be rigorously policed.
This was despite the fact that the Prime Minister reiterated his support for the code on March 8 in the House of Commons, the lobby group said.
The code of conduct was set up as a voluntary code to ensure the fair treatment of suppliers by supermarkets.
Clive Davenport, FSB national trade and industry c hairman, said: "I was shocked at Mr Fingleton's reported comments.
"It shows a terrible lack of understanding of what is going on in the grocery market.
"His view that consumers only value price and do not look at product quality, local produce or service quality is misplaced.
"Effective competition always takes in more factors than just cost."
Mr Davenport said bringing in goods from abroad would be more expensive in the long term, because of higher transport costs.
"Once there are no UKbased competitors left there will be no pressure to keep costs down and it will also lead to a rise in pollution from more delivery vehicle journeys," he said.
"For the Chief Executive of the Office of Fair Trading to be taking a position that price is the be-all and end-all is inexplicable," Mr Davenport added.
"For him to be complacent about the future of UK firms is even worse.
"I look forward to meeting him soon to attempt to set the record straight on this vital issue to British consumers, businesses and their employees."