The South African Canegrowers Association (SA Canegrowers) is alarmed at the 400% surge in imports of foreign sugar this year so far. This has reportedly lost the local sugar industry more than R760 million and counting.
By Lloyd Phillips, Senior Journalist at African Farming and Landbouweekblad
Whenever it seems that the South African sugarcane value chain can finally focus its full attention on researching and implementing diversification opportunities to overcome its long-beleaguered financial situation, yet another significant hurdle emerges.
SA Canegrowers is one of the associations representing the interests of South Africa’s 24 000 smaller-scale and 1 200 larger-scale sugarcane growers, who are the essential foundation of the R25-billion-a-year sugar industry.
SA Canegrowers states: “Sales of locally produced sugar are falling dramatically as a result of an unprecedented surge in imports of heavily subsidised sugar.
“Already sugar imports for January to August 2025 are over 400% higher than such imports for the same period last year.”
The association explains that the 149 099 tonnes of sugar imported from Brazil, India and other countries so far this year have displaced a similar volume of South African sugar onto the often oversupplied and unprofitable world raw sugar market. Estimates are that the South African sugar industry has lost at least R760 million in potential income so far this year as a result of this.
“Countries like Brazil and India subsidise their respective sugar industries. They further subsidise their sugar exports, resulting in exported sugar prices that do not reflect the true value of production.”
South Africa’s sugar industry does not receive government subsidies.
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Not even consumers are benefiting
“Opportunistic importers bring this sugar into South Africa and sell it at prices similar to [those of] locally produced sugar. They thereby pocket huge profits at no benefit to consumers.”
SA Canegrowers points out that the South African government’s adjustments of its tariffs on imported sugar in August are not stemming the flood.
The association has also expressed concern that importers and/or repackers and/or retailers of this imported sugar are not labelling it correctly as required by law. This makes it difficult for consumers to clearly identify South African sugar from imported sugar and make an informed choice about which to buy.
“When buying sugar, consumers can look for phrases that should clearly indicate the sugar was grown or produced in South Africa. Sugar that is merely ‘PACKED’ in South Africa, or that indicates countries of origin other than South Africa, is threatening the livelihoods of [the estimated one million people who directly or indirectly depend on South Africa’s sugarcane value chain].”
Visit www.saveoursugar.org.za for more information on how to identify South African sugar from imported sugar.
Also read: R30m finance facility for black sugarcane farmers unlocked
