South Africa’s primary sugarcane value chain is requesting significantly strengthened tariff protection against sugar imports into the country. However, beverage manufacturers want the protection lowered. The state is therefore requesting comments and additional information from all interested and affected parties.
By Lloyd Phillips, senior journalist at African Farming and Landbouweekblad
The South African Canegrowers Association (SA Canegrowers) reports that 153 344 tonnes of “heavily subsidised” imported sugar entered South Africa between January and September 2025, and that such imports are continuing unabated. The previous highest level of sugar imports was 55 213 tonnes for the same period in 2024.
To protect South Africa’s unsubsidised sugar production, 28 000 sugarcane growers and six sugarcane milling companies from what is widely considered as unfair competition, the South African Sugar Association (SASA) submitted a request to the International Trade Administration Commission of South Africa (ITAC) to have the current US$680 per tonne dollar-based reference price that is the triggering mechanism on the tariff on imported sugar, raised to US$905/tonne.
Through this, SASA is seeking to deter the ongoing flood of imports of cheap sugar that reportedly displace equivalent volumes of South Africa’s own sugar onto generally loss-making world sugar markets.
However, a notice by ITAC in a recent Government Gazette says that the Beverage Association of South Africa (BevSA), whose members reportedly jointly comprise the single biggest consumer of sugar in the country, submitted an application for the dollar-based reference price to be lowered to between US$552/tonne and US$650/tonne.
ITAC’s notice adds: “[BevSA’s application cited] amongst other reasons, the adverse impact of current duties on beverage producers, bottlers, consumers and others.
“The divergent applications submitted by industry stakeholders prompted a need to determine the most appropriate course of action, in alignment with ITAC’s legislative and policy framework, including the strategic objectives outlined in the South African Sugarcane Value Chain Master Plan to 2030.”
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Even More Sugar Imports Expected
ITAC has therefore decided to self-initiate a comprehensive investigation intended to achieve an informed and balanced final decision on what the dollar-based reference price should be.
For this reason, ITAC is now inviting comments and further information from all interested and affected parties within South Africa’s sugarcane value chain.
Sifiso Mhlaba, executive director of SASA, says his association welcomes ITAC’s wider consultations and investigations to achieve a final decision. SASA is ready and willing to provide ITAC with any further information that the commission’s investigation may require.
“We’ve been told that more imported sugar can be expected in the next three months. Our industry has suffered a lot of damage already from sugar imports since we submitted our initial application to ITAC in October 2024. So, we are hoping for a quick resolution to ITAC’s investigation and decision.
“We also remain committed to and part of the master plan. Part of this plan includes strategic trade protection for our value chain. It has been officially recognised by all parties throughout the value chain that the local market does need to be protected from deep-sea imports of dumped sugar. This protection will help enable the goals of the master plan to be achieved.”
African Farming has requested reactions to ITAC’s notice, from other stakeholders in South Africa’s sugarcane value chain.
BevSA’s response states: “[We] cannot comment further on this matter until the public comments phase is initiated by ITAC. As this issue is currently subject to formal legal processes under ITAC’s purview, we are strictly adhering to their established procedures and will only be able to provide further details once authorised to do so.”
Reactions from other stakeholders will be added when they become available.
Comments and information regarding the dollar-based reference price must be submitted to ITAC by Thursday, 5 March 2026, using the reference 13/2025.
Enquiries and submissions must be emailed to one or more of the following: Manini Masithela, mmasithela@itac.org.za; Khosi Mzinjana, kmzinjana@itac.org.za; Scelo Mshengu, smshengu@itac.org.za; Amina Varachia, avarachia@itac.org.za; Dolly Ngobeni, dngobeni@itac.org.za; Joseph Mawasha, jmawasha@itac.org.za.
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