Despite the ongoing severe drought in South Africa’s sugar-producing regions, the sugar industry is confident it can produce enough sugar to supply the local market, according to the Minister of Trade and Industry Minister, Rob Davies.
He said there was sufficient raw sugar in stock at the sugar terminals in addition to a small surplus for export, but pointed out that “special measures” had to be taken to ensure more production of refined sugar.
"Due to the unexpectedly high demand for refined sugar, especially by the soft drinks manufacturers, the industry experienced low stocks of some grades. At the beginning of March the sugar industry met to implement a strategy to restore supply of refined sugar into the domestic market," Davies said in a written reply to a parliamentary question by Democratic Alliance (DA) trade and industry spokesman, Geordin Hill-Lewis.
Hill-Lewis questioned Davies on whether he was considering the temporary removal of duties on imported sugar to assist consumers and alleviate food price inflation.
Davies commented that the two biggest sugar refineries in South Africa – Noodsberg and Tongaat Huletts – had agreed to open early for refining purposes, noting that the sugar season started on April 1.
"The figures received from the sugar industry regarding 2016-17 production estimates, from the 2015-16 crop, indicate sufficient supply into the local market going forward,” he said.
Davies added that in the event of a supply shortage, the dti would engage with the industry and the International Trade Administration Commission (Itac) to initiate a rebate facility to counter the effects of the duty on imports.
