According to the BBC, Indigenous Affairs Minister Nigel Scullion called Vegemite a "precursor to misery" because it is being used by some indigenous dry communities to brew alcohol.

Scullion says Vegemite is being bought in bulk by some to produce moonshine in areas where alcohol is banned due to alcohol addiction problems in the community.

The homemade alcohol problem is so bad that in some towns, children are showing up to school hungover.

Scullion is encouraging indigenous communities to limit bulk sales and report any unusual sales patterns to the government.

But a health official interviewed by the BBC says the problem is not that widespread, and Prime Minister Tony Abbott rejected the idea of a Vegemite ban.

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