SA Canegrowers presses ITAC on rural job protection

SA Canegrowers has warned that South Africa’s sugar tariff review process must prioritise the protection of rural jobs and livelihoods, as growers face mounting financial losses linked to a surge in imported sugar.

The industry body said it will participate constructively in the newly gazetted review by the International Trade Administration Commission of South Africa (ITAC). Still, it stressed that the risk to domestic sugar production must be fully recognised. According to SA Canegrowers, a collapse of local output caused by heavily subsidised imported sugar would lead to job losses and deepen poverty in rural areas.

Growers are already absorbing significant financial pressure. SA Canegrowers estimates that in 2025 alone, the displacement of locally produced sugar by imports has resulted in losses of about R733 million.

Read: SA to revisit sugar-price trigger after import surge

At the centre of the review is the dollar-based reference price (DBRP), the mechanism used to calculate import tariffs on sugar. SA Canegrowers said the current DBRP is no longer aligned with the realities of the global sugar market and has failed to prevent a record influx of imported sugar. The organisation warned that failing to adjust the DBRP to what it considers a fair level places rural livelihoods at risk.

Its latest analysis shows that 177 408 tons of duty-paid sugar entered South Africa between January and November 2025, compared with less than 3 000 tons over the same period in 2022. This increase has occurred despite recent tariff adjustments linked to world sugar prices, which SA Canegrowers says highlights that the DBRP is outdated.

The organisation also raised concerns about an application by the Beverage Association of South Africa (BevSA) calling for a lower DBRP. While such a change could provide short-term relief for importers and beverage producers, SA Canegrowers said the longer-term effect would severely damage the domestic sugar value chain. It cautioned that global sugar prices fluctuate and that undermining local production during a low-price cycle would have lasting economic consequences.

Read:
SA Canegrowers urges Godongwana to scrap ‘job-killing’ sugar tax
South Africa sugar lobby says record imports put jobs at risk

SA Canegrowers noted the surge in imports is already pushing growers toward closure, with the risk set to increase if tariffs are reduced further. It highlighted that rural economies in KwaZulu-Natal and Mpumalanga depend on about 27 000 small-scale and 1 100 large-scale growers, and that more than one million livelihoods rely on the sugar industry.

The organisation urged ITAC to ensure the review process fully accounts for the threat to rural employment and income in a country facing high levels of poverty.

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.