Role players in the South African sugar industry have welcomed the decision by the government to adjust the dollar-based reference price (DBRP) for sugar imports; however, they urge ongoing protection measures for local growers, millers and workers.
SA Canegrowers chairman Higgins Mdluli cautioned that the adjustment may not go far enough to fully close the gap that has allowed a surge of subsidised imports to displace locally produced sugar from the local market.
“We thank minister Tau, minister Godongwana and commissioner Ayabonga Cawe for listening to the industry and acting on the evidence we have presented over the past two years.
“This adjustment shows the government understands the severity of the crisis facing sugarcane growers,” he said.
A step in the right direction, but gap remains
SA Canegrowers stated that the dollar-based reference price (DBRP) is the benchmark price, set in US dollars, that underpins South Africa’s variable tariff on imported sugar, which was at $680 per tonne from 2018.
“When world sugar prices fall below the reference price, a tariff is applied to make up the difference, so that imports cannot undercut local producers and flood the domestic market. The newly gazetted DBRP is $785 per tonne.
Related stories
- Sugarcane milling starts strong amid Tongaat crisis, cheap imports
- Drone spraying cuts costs, boosts yields for KZN sugarcane co-op
- R30m boost for black sugarcane farmers through Kagiso Trust deal
- Sustainable small-scale sugarcane growers vital to sugar industry
“The lower DBRP has left South Africa open to a surge of imported sugar, with volumes rising sharply over the past two years. Duty-paid imports for the January to June period rose from just 1,619 tonnes in 2022 to 124,594 tonnes over the same period in 2026; a more than seventy-fold increase in four years,” SA Canegrowers said.
Over the same period, local sugar sales have fallen by 35% or some 188 000 tons. This has happened in just three seasons, SA Canegrowers further explained. Grower proceeds have fallen by R1.33 billion, largely due to the export burden.
“We are encouraged that government has acted, but we will be watching closely over the coming months to see whether this adjustment translates into a genuine reduction in the volume of imported sugar entering the country.
“Growers need certainty, not another partial fix. We remain ready to work with government and all stakeholders to ensure the sugar industry can compete on a fair footing,” Mdluli said.
Industry demands further action
In a statement, the International Trade Administration Commission of South Africa said it considered two applications from industry stakeholders regarding the current DBRP for sugar.
The first application, submitted by the South African Sugar Association (“SASA”) on 30 October 2024, requested an increase in the DBRP from US$680/tonne to US$905/ton.
The second application, submitted by the Beverage Association of South Africa (Bevsa) on 25 September 2025, requested a reduction in the DBRP from US$680/tonne to between US$552/ton and US$650/tonne.
“Given the divergent positions of the stakeholders and following extensive engagements between government and industry, it was agreed that a combined evaluation of both applications would be the most efficient and equitable approach.
“During its deliberations and in arriving at its recommendation, the commission considered the information at its disposal, including comments received during the investigation period,” the commission said.
Meanwhile, Illovo Sugar (South Africa) expressed its disappointment that the revised DBRP for sugar has been set at USD 785/ton, noting it “falls materially short of what is required to protect South Africa’s sugar industry from the continued threat of unsustainably priced foreign imports and inflationary pressure”.
Illovo Sugar explained that during the 2024/2025 season, sugar imports from outside the South African Customs Union region reached 213,322 tonnes, leading to a drop in revenue across growers and millers by R1 billion and half a billion respectively.
With approximately 270 000 direct and indirect jobs supported by the industry, the organisation has called on the government to do the following:
- Implement urgent short-term safeguard measures, including through the available ITAC Section 6 mechanism, to provide immediate relief from the surge in unsustainably priced deep-sea imports.
- Initiate a further review of the DBRP, fully accounting for the widespread implications of the current number for the industry.
- Introduce a more responsive mechanism, reviewed regularly and linked to market conditions, to ensure tariffs keep pace with import pressure, rather than lagging.
READ NEXT: Aucamp outlines strategy for biosecurity, trade, and infrastructure
