ITAC sugar tariff review raises concerns over rural jobs, says SA Canegrowers

SA Canegrowers has confirmed it will participate in the newly gazetted International Trade Administration Commission of South Africa (ITAC) review of the sugar tariff regime, while warning that the outcome will have significant implications for rural jobs, livelihoods and the long-term sustainability of the domestic sugar industry.

The growers’ body cautioned that a failure to adequately address the impact of heavily subsidised imported sugar could accelerate job losses and deepen poverty in rural communities. According to SA Canegrowers, a collapse in local sugar production would place more than one million livelihoods at risk across the value chain.

Concerns over import surge

Growers are already experiencing substantial financial strain. SA Canegrowers estimates that the surge in imported sugar displaced locally produced sugar in the domestic market during 2025, resulting in losses of approximately R733 million to growers.

At the centre of the review is the Dollar-Based Reference Price (DBRP), which determines the tariff applied to imported sugar. SA Canegrowers argues that the current DBRP no longer reflects global market realities and has allowed a record volume of imported sugar to enter South Africa, despite adjustments to align tariffs with world sugar prices.

Between January and November 2025, 177,408 tonnes of duty-paid sugar entered the country, compared to fewer than 3,000 tonnes during the same period in 2022. The organisation says this sharp increase highlights structural weaknesses in the current tariff mechanism.

Impact on rural economies and local producers

SA Canegrowers has raised concern over an application by the Beverage Association of South Africa (BevSA) calling for a lower DBRP. While such a move may reduce costs for importers and beverage producers in the short term, growers argue that it would undermine the domestic sugar value chain over time.

“The global sugar price is cyclical,” the organisation noted. “Making irreversible policy decisions based on temporary price lows risks long-term damage to local production capacity.”

The sugar industry supports approximately 27,000 small-scale growers and 1,100 large-scale growers, primarily in KwaZulu-Natal and Mpumalanga, where it plays a central role in sustaining local economies. SA Canegrowers warned that a further influx of imported sugar could force many producers out of business.

SA Canegrowers said it would engage constructively in the ITAC review process and called on the commission to ensure that the assessment fully considers the socio-economic consequences for rural communities in a country already facing high unemployment and poverty levels.