“Other companies haven’t done it[stopped selling Australia Day merchandise] and on that basis,I think Australians should boycott Woolworths. I think Brad Banducci should come out and announce that he’s reversing the decision.

“I think the prime minister,frankly,needs to call it out because these CEOs do believe that by making these crazy decisions,somehow they’re signing up to the woke agenda of Anthony Albanese.”

Woolworths declined to comment further after Dutton’s criticisms.

Agriculture Minister Murray Watt hit back at Dutton on Thursday afternoon by arguing the government was focused on bringing grocery prices down,including by a review into the Food and Grocery Code of Conduct led by former cabinet minister Craig Emerson.

“Peter Dutton is always focused on a culture war,” Watt said.

“Our government is focused on the prices that supermarkets charge;Peter Dutton is focused on the kind of thongs that supermarkets sell.”

Accusing Dutton of playing divisive politics,Watt said:“It’s a matter for all Australians and all businesses what they say what they do when it comes to politics.

“We don’t live in some dictatorship,where the government of the day tells you what you can think and what you can do and what you can sell. We’ll leave those kinds of decisions to businesses who operate in a market just like everywhere else.”

Dutton was backed by opposition indigenous affairs spokeswoman Jacinta Nampijinpa Price,a central figure in the campaign against the Voice.

“I think we should be boycotting those who are prepared to not be proud of this country,” Price told 3AW,adding she did not believe Woolworths’ claim the decision was because of a lack of customer demand.

“Seriously? It’s a political position and it’s a stance that they’ve chosen to take,” she said.

Former Sydney lord mayor Lucy Turnbull,the wife of former prime minister Malcolm Turnbull,posted on social media:“Seriously enough with the call to boycott a leading Australian company because of what it freely decides to sell (or not). Stop the culture wars! Stop cancel culture! Please make it stop.”

Speaking earlier on Melbourne radio station Fox,Albanese distanced himself from Woolworths’ decision,saying his focus was making sure the supermarket did the right thing by its customers at the checkout.

“What I’d say to Australians is Australia Day is the day in which you should buy Australian,” he said. “I’ll certainly be at Canberra at the national capital for the Australia Day awards.

“It is a day in which we can give respect to First Nations people. We acknowledge that it’s a difficult day for them,but it’s also a day in which we can reflect on what it means to be Australian and how we can make the greatest country on earth even better in the future.”

NSW Premier Chris Minns said Woolworths Group’s decision came as a surprise to him as he thought there would have been enough demand from customers for Australia Day products.

“It seems odd not to offer your customers a few green and gold thongs or Southern Cross stubby holders as Australians take a well-earned day off after a tough couple of years,” he said.

Boycotts of Australia Day merchandise made headlines last year when Kmart stopped selling themed products,instead saying that it had products year-round that featured Australiana designs as well as educational material.

Coles said it would continue to sell a small range of Australian-themed summer entertaining merchandise.

With Michael McGowan

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