SA Canegrowers has called on the government to urgently scrap the sugar tax in light of a surge in imported sugar that is increasingly displacing locally produced sugar and threatening the survival of the South African sugar industry.
In a statement, the organisation said the local sugar industry supports more than one million livelihoods, directly and indirectly, across KwaZulu-Natal and Mpumalanga.
“The 27 000 small-scale and 1 100 large-scale sugarcane growers form the backbone of this value chain, yet for the past year, they have been under unprecedented pressure due to the combined effects of rising input costs and volatile global markets. The sugar tax is only serving to compound pressure on a sector already in severe distress.
“The SA Canegrowers is urging government, industry partners and consumers to stand together to protect a sector that underpins many rural economies,” the organisation said.
Higgins Mdluli, chairman of SA Canegrowers, noted, “Imported sugar is often heavily subsidised in exporting countries, but the only people who benefit are the agents who import the sugar into South Africa and are often able to reap high short-term profits by selling the sugar at local market prices.”
Call on government to protect local growers
According to SA Canegrowers, data released by SARS reveals that 153 344 tons of heavily subsidised imported sugar entered South Africa between January and September 2025.
“As a comparison, over the same period in 2020, South Africa imported just 20 924 tons, whilst the previous highest level of imports was 2024 at 55 213 tons for the same period,” the statement said.
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The global sugar market is currently characterised by persistent oversupply and heavily distorted trade, with large exporting countries able to offload surplus sugar at artificially low prices due to subsidies, currency advantages and weak global demand growth.
“In this environment, protecting South Africa’s domestic market is critical. Without effective safeguards, local growers are forced to compete against dumped imports while simultaneously facing policies that suppress local demand. Allowing imported sugar to displace locally produced sugar under these conditions undermines food security, erodes rural economies and places a strategic agricultural sector at long-term risk,” said Mdluli.
SA Canegrowers said they produce more than enough sugar to meet local demand, so imported sugar displaces locally produced sugar from retail shelves and food and beverage manufacturers.
“The sugar tax is an unproven policy experiment with very real consequences for rural jobs and investment. Any future decisions must be informed by a balanced assessment of health data and a calorie-intake survey of South Africans, balanced with the impact on the economy and on the sustainability of local food production.
“Saving the sugar industry is not just about growers; it is about communities, jobs and South Africa’s ability to produce its own food. By standing together now, we can protect a strategic sector and secure a more sustainable future for generations to come,” Mdluli said.
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