Vegemite could be ending up in more than sandwiches, following reports of the yeast extract being used to make homemade alcohol in dry communities across Queensland and the Northern Territory.

The problem has been described as prolific in some areas in the Northern Territory, with reported instances of people buying up to twenty jars of Australia's favourite spread at a time, for the brewing of homemade alcohol.

Bega may be tempted to part-fund its Vegemite buy via a share issue. Credit:Eddie Jim

Indigenous Affairs Minister Nigel Scullion said the goal was for local communities to take a greater responsibility in restricting excessive sales of high-yeast products, rather than impose a legislative ban on the food products.

"The government is not seeking to place any restrictions on Vegemite or any other yeast product that may be used in home brew in remote communities," he said.