DEFRA secretary Caroline Spelman has written to the cabinet demanding that all food under its public procurement jurisdiction meet British farming and manufacturing standards.
The move has been taken to improve the nation's health and boost the struggling agricultural sector.
The letter to other secretaries of state asks that all food procured and served by government departments and eventually in hospitals, schools and prisons must meet British standards, such as the Red Tractor or approved organic schemes, wherever it is bought from.
The proposals relate only to food that can be grown, reared or produced in the UK.
The government's proposed new supermarket ombudsman will "have teeth" and is likely to be in place by the end of this year, according to The Telegraph.
The ombudsman will arbitrate disputes between big supermarkets and their suppliers. The minister has started talks with business secretary Vince Cable on the initiation of the ombudsman, which will answer to his department. The ombudsman is set to be up and running by the end of the year.
Spelman wrote: "The government is committed to ensuring that food procured by government departments, and eventually the whole public sector, meets British standards of production wherever this can be achieved without increasing overall costs.
"The public sector spends £2 billion on food procurement annually. This provides a powerful opportunity for the public sector to show leadership to support British food standards and provide food which is healthy, sustainable and ethically sourced."
A DEFRA spokesman said the move is not a "buy British" campaign because that would be against EU regulations.
In the new government’s coalition document it said: "Food comes in from overseas but we want to see a level playing field so that it is produced to the high standards that we expect from our own farmers.”
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