Print and Packagings industry federations have reacted with anger to the new code of conduct for supermarkets proposed by the DTI and Office of Fair Trading.

The code, which was put forward by the Office of Fair Trading, was meant to redress the balance between the powerful retailers and their suppliers including printers by putting clearer contractual relations in place.

However, there are fears that the code does not clearly address the rebate scheme, which can see packaging suppliers paying supermarkets up to 10% of a jobs value to remain on its preferred suppliers list.

The associations that campaigned for a new set of practices included the BPIF, GPMU, Packaging Federation, the National Union of Farmers and the Country Land and Business Association. They argued that printers were effectively caught between the rock-like buying power of the supermarkets and the hard market place.

BPIF director of corporate affairs Mike Hopkins said: "The relationship between packaging companies and supermarkets is extremely unequal. Youve got 18bn Tesco against a 5m packaging firm - it makes David and Goliath look like a fair fight."

"We asked for much more input before the code was published. The DTI was more interested in listening to the supermarkets. Quite frankly they negotiated with those committing the wrong and not the wronged. Were very unhappy and very annoyed."

Packaging Federation chief executive Ian Dent echoed the fact that suppliers had been denied any real input since Februarys draft document.

He said: "I fail to see that the code in its present form does anything but legitimise existing practices, rather than ameliorating the situation. Really its is a very one-sided piece of paper and in my mind grossly unfair. The supermarkets, of course, are delighted and one can only presume its because they have got their way."

Hopkins said that all the trade associations would now take stock of the codes implications and discuss their next move with members.

The Office of Fair Trading said that it hopes to sign up the big four supermarkets with 8% or more of market share, Asda, Safeway, Sainsburys and Tesco, in the next four weeks.