ITAC announces sugar tariff review process amid diverging industry applications

There has been a welcome reaction to the International Trade Administration Commission (ITAC), a division of the Department of Trade, Industry and Competition, announcing that the sugar tariff review process has been gazetted regarding the Dollar-Based Reference Price (DBRP). ITAC's review comes after the South African Sugar Association (Sasa) applied for an increase in the current DBRP while the Beverage Association of South Africa (Bevsa) applied for a reduction in the current DBRP.

ITAC said that Sasa applied for an increase in the current DBRP from $680 (R10 900)/ton to $905 (R14 400)/ton. “Sasa, citing amongst other reasons the need to protect the local sugar industry and ensure its sustainability. This application was made known to industry stakeholders, who were provided the opportunity to submit preliminary comments.”

ITAC added that subsequently, Bevsa applied for a reduction in the current DBRP from $680 (R10 900)/ton to between $552 (R8 850)/ton and $650 (R10 420/ton). “Bevsa cited amongst other reasons the adverse impact of current duties on beverage producers, bottlers, and consumers. The divergent applications submitted by industry stakeholders prompted a need to determine the most appropriate course of action, in alignment with ITAC’s legislative and policy framework, including the strategic objectives outlined in the Sugar Industry Value Chain Masterplan.”

ITAC said that after extensive engagements between the government and industry stakeholders, it was agreed that a combined evaluation of both applications represents the most efficient and equitable approach to address the diverging requests regarding the appropriate level of the DBRP.

The South African Farmers Development Association (Safda) said that it welcomes the ITAC notice of a combined assessment of applications submitted by the sugar and beverage industries. “This process provides an important opportunity for farmers and industry stakeholders to present their views and to demonstrate the deleterious impact that deep-sea sugar imports are having on the local sugar industry. The industry is currently under severe strain, with the business rescue status and declining viability of several sugar mills posing a serious threat to the sustainability of the sector.”

Safda added that these challenges place livelihoods, jobs, and the broader economic stability of the industry at risk, particularly in rural communities that are heavily dependent on sugarcane production.

“Up to November 2025, approximately 142 000 tons of sugar imports have come into our local market. This represents a 123% increase compared to import levels during the same period in the 2024/2025 season. These imports directly compete with locally produced sugar, forcing South African producers to divert displaced volumes to international markets at a significant loss of approximately R7,700 per ton of exported sugar," it said.

Safda said this loss of revenue has a direct and adverse impact on sugarcane prices paid to farmers, which continue to decline. “With three months still remaining in the current season, there is a real risk that farmers may lose their retentions or even end up owing millers when final sugarcane payments are reviewed and adjusted, should further imports enter the local market.”

SA Canegrowers said they will participate constructively in the newly gazetted ITAC sugar tariff review process, with the expectation that full and proper regard is given to the risk facing rural jobs and livelihoods. “Were there to be a collapse in domestic sugar production as a result of heavily subsidised cheap sugar imports entering South Africa, the country risks job losses and increased poverty.

SA Canegrowers added that growers are already experiencing devastating financial losses due to the surge of imports.

“In 2025, this impact will already be in the region of R733 million, as imported sugar has displaced locally grown sugar in the market. It is critical that the DBRP is assessed against the realities of the global sugar market and continues to function as part of a fair South African trade policy.”

SA Canegrowers said the current DBRP is already not appropriately calibrated to these market realities and has allowed a record surge of imported sugar to enter the country and displace locally grown produce.

“Not adjusting the DBRP to a fair level puts rural livelihoods at risk. The latest analysis by SA Canegrowers shows that 177,408 tons of duty-paid sugar entered South Africa between January and November 2025, compared to less than 3,000 tons in the same period in 2022. This dramatic surge is despite the tariff on imported sugar being adjusted to align with the world sugar price and is a clear indicator that the DBRP – the mechanism to calculate the import tariff – is outdated,” it said.

BUSINESS REPORT