South Africa’s variable wheat import tariff has been triggered for a reduction, offering potential relief to millers and consumers, though delays in implementation continue to challenge the industry.
According to the South African Cereals and Oilseeds Traders Association (Sacota), South Africa has a variable wheat import tariff designed in part to protect the local wheat industry against subsidised imports. Wheat and wheaten products, such as bread, alongside white maize, are key indicators of food security and affordability for consumers.
The country imports roughly half of its wheat requirements, with Sacota members responsible for all imports from 10 different countries during the 2024/25 season.
“In times of high global wheat prices, our import tariff is low; however, when international wheat prices are low, our tariff is high,” Sacota explained.
According to the association, earlier this year, international prices edged lower, resulting in a relatively high tariff of R851.50, or about 15% of the current wheat price traded on the JSE Commodity Derivatives Market (formerly Safex).
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Delay in lower tariff implementation
Despite local wheat prices trading at relatively low levels and the industry facing distress, international wheat prices have recently trended slightly higher, triggering a reduction in the wheat tariff.
South Africa’s wheat import tariff has now been set for reduction to approximately R616 per ton, a decrease of R236. However, this lower tariff will not take effect until it is officially published in the Government Gazette, and there is currently no fixed timeline for implementation.
“Until publication, the higher rate of R851.50/ton remains applicable,” Sacota noted.
While the eventual reduction will help reduce costs for millers and support wheat affordability, the uncertainty in timing continues to place financial strain on the industry. “If a 50 000-ton shipment were to land before the new tariff becomes effective, importers and their clients (millers) would face an additional cost of approximately R12 million purely due to the delay in implementation,” Sacota explained.
Proposal for automated tariff adjustments
To address this issue, Sacota, together with industry stakeholders, has proposed a new automated methodology for tariff adjustments. This system would allow changes to take effect within a shorter and more predictable timeframe, similar to the monthly fuel price adjustment system.
“Under the proposed approach, today’s trigger would have led to implementation from 1 January 2026, just 22 working days later,” Sacota said.
The association noted that under the current tariff of R851 per ton, Sagis reports that approximately 890 000 tons of wheat were imported between 11 July and 14 November 2025. This equates to around R750 million in SARS tariff income over this period alone.
The ongoing delay in implementing tariff adjustments highlights the broader need for certainty in the wheat industry. The International Trade Administration Commission of South Africa (Itac) is still processing the application for an automated implementation system.
“It has been 13 months since the application was submitted to Itac for the revision of the implementation methodology without receiving an outcome,” Sacota noted. The matter has now been raised at a ministerial level through the Grain Value Chain Round Table under the Agriculture and Agro-processing Master Plan.
“The wheat tariff affects the whole industry: from producer to importer, to miller, to consumer. Certainty in tariff adjustments and ultimately the price would assist a great deal in planning ahead,” Sacota added.
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