Sugar industry calls for revised sugar tariff benchmark
South Africa's sugar producers are calling on the government to urgently revise the Dollar-Based Reference Price to safeguard local jobs and industry stability as rising imports threaten their livelihoods.
South African sugar producers are urging the government to swiftly publish a revised Dollar-Based Reference Price (DBRP) for imported sugar, as higher import volumes threaten local sales and jobs in the industry. The Sugar Association requested an increase from $680 to $905 per ton in October 2024, with the International Trade Administration Commission of South Africa (ITAC) reviewing the tariff mechanism.
However, the Department of Trade, Industry and Competition (DTIC) stated that further steps are needed before implementation. Illovo Sugar South Africa highlighted the delay as prolonging uncertainty, citing higher input costs, inflation, and competition from imported sugar. The company reported that local sugar sales had dropped by 35% over three seasons, while import displacement costs growers R733 million in 2025 alone.
SA Canegrowers CEO Thomas Funke warned of potential mill closures, job losses, and permanent exits from the industry if the current DBRP remains unchanged. Cosatu called for a balance between protecting local producers and addressing costs for beverage and food manufacturers, urging stronger actions against illicit imports and advocating for local purchasing.
The government is currently consulting with the National Treasury on the matter, with details to be shared in the gazette.
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