SA plans sugar tariff hike as cheap imports threaten growers, mills and jobs

Johannesburg – South Africa is moving towards a significant increase in the tariff protection applied to imported sugar as a surge in cheap foreign supplies threatens local growers, mills and jobs.

According to News24, the government is preparing to raise the Dollar-Based Reference Price (DBRP) used to determine when additional duties are imposed on imported sugar.

The move follows a review by the International Trade Administration Commission of South Africa (ITAC) after the South African Sugar Association applied in 2024 for the reference price to be increased from $680 to $905 per tonne.

The DBRP is designed to protect local producers when international sugar prices fall below a specified benchmark. According to the South African Sugar Association (SASA), the current benchmark has become outdated because production costs have risen sharply while the reference price has remained largely unchanged since 2018.

Grower’s income

The scale of the import surge has intensified pressure on government. Business Day reported that South Africa imported 94,984 tonnes of sugar between January and May 2026, compared with 55,213 tonnes during the same period in 2025.

SA Canegrowers chair Higgins Mdluli described the situation as a crisis.

“Every tonne of locally produced sugar displaced by an import is a direct hit to a grower’s income, a mill’s viability and a rural community’s stability,” Mdluli said, according to Business Day.

The IOL/Mercury reported that imports from outside the Southern African Customs Union reached 213,322 tonnes in the 2024/25 season, contributing to an estimated R1 billion loss in grower revenue and about R500 million in miller revenue.

SA Canegrowers chief executive Thomas Funke said duty-paid imports rose from just 1,619 tonnes between January and June 2022 to 124,594 tonnes during the same period this year.

Sustainability of domestic sugar production

“Every additional month under the existing DBRP increases the risk of further mill closures, job losses and growers exiting the industry permanently,” Funke said.

The Department of Trade, Industry and Competition confirmed that the tariff review is being prioritised but said the revised benchmark still requires consultation with National Treasury before it can be gazetted.

“The department is in consultation with National Treasury on the matter as it requires some concurrence before it is gazetted,” DTIC spokesperson Kaamil Alli said, according to IOL.

The development comes as South Africa seeks to preserve an industry that supports thousands of farmers and workers, particularly in KwaZulu-Natal and Mpumalanga, while addressing growing concerns over the sustainability of domestic sugar production.