South Africa's sugar industry has urged the Department of Trade, Industry and Competition (DTIC) to urgently finalise changes to the country's sugar import tariff mechanism, warning that a sharp increase in low-cost imports is displacing local production.
DTIC spokesperson Kaamil Alli told Freight News on Tuesday that the department recognised the urgency of the matter and was working with the International Trade Administration Commission of South Africa (ITAC) towards a resolution.
According to SA Canegrowers, SARS data shows sugar imports reached 94 984 tonnes between January and May 2026, up from 55 213 tonnes during the corresponding period last year. Imports over the same five-month period totalled just 1 491 tonnes in 2022.
"The scale of what we are seeing now is nothing short of a crisis," SA Canegrowers chairman Higgins Mdluli said.
"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."
The industry body said imports, mainly from Brazil, India and Thailand, were eroding domestic sales. South African Sugar Association figures show local sugar sales fell to 255 015 tonnes between April and June 2026, down by more than 45 000 tonnes from the same period last year. Over recent seasons, local producers and millers have lost almost 175 000 tonnes in domestic sales compared with previous highs of 428 422 tonnes.
ITAC has been reviewing the industry's application to amend the Dollar-Based Reference Price (DBRP) mechanism for more than 18 months. SA Canegrowers argues that the current framework no longer provides adequate protection against low-priced imports from countries where sugar producers benefit from government support and integrated ethanol programmes.
"Every week of delay in adjusting the dollar-based reference price costs the industry hundreds of millions of rands in displaced sales," Mdluli said.
"We are not asking for special treatment. We are asking for the existing tariff mechanism to be implemented correctly to ensure a level playing field."
The industry estimates that every tonne of imported sugar costs local producers more than R7 500 in lost revenue. It also argues that consumers are not benefiting from cheaper imports because importers are selling foreign sugar at prices similar to locally produced sugar.
Under the current industry agreement, unsold domestic sugar must be exported onto the global market, reducing returns for local producers. SA Canegrowers said grower prices are projected to decline by more than 10% this season to about R6 600 per tonne.
"The department does recognise the urgency with which this issue needs to be resolved," Alli said.
"The process is underway between ITAC and the department and we are working towards resolution of the matter."
