South Africa moves to raise sugar duty reference price amid rising imports
South Africa is increasing its dollar-based reference price (DBRP) for imported sugar from $680 to $785 per tonne to protect local producers from a sharp rise in cheaper foreign imports. Approved by Finance Minister Enoch Godongwana following an ITAC review, the adjustment aims to safeguard domestic grower incomes and mill viability once officially gazetted.
Johannesburg: To shield domestic growers and mills from a surge in cheaper foreign supplies, South Africa is set to raise the dollar-based reference price (DBRP) used to determine duties on imported sugar, reported Food Business MEA.
Earlier this week, Finance Minister Enoch Godongwana approved the proposal. The benchmark will be revised to $785 per tonne from the current $680 a tonne, the report said, citing Bloomberg, which based its report on people familiar with the matter. The revised benchmark is expected to be published in the Government Gazette.
After the South African Sugar Association (SASA) sought an increase in the benchmark in 2024, it was reviewed by the International Trade Administration Commission of South Africa (ITAC), and only after that was the decision taken. SASA had proposed raising it to $905 per tonne, arguing that the existing level no longer reflects the industry’s higher production costs.
The DBRP acts as a reference level for determining the duty on imported sugar when international prices fall below the specified threshold. The benchmark has remained largely unchanged since 2018, according to the industry.
South Africa’s sugar imports have risen sharply this year to 94,984 tonnes between January and May 2026, up from 55,213 tonnes during the corresponding period last year.
Terming the impact of rising imports on the domestic industry a crisis, SA Canegrowers chair Higgins Mdluli said that imported sugar was affecting grower incomes, mill viability and rural communities.
Industry figures showed that imports from outside the Southern African Customs Union totalled 213,322 tonnes during the 2024-25 season. The imports were estimated to have resulted in losses of about 1 billion South African rand in grower revenue and around 500 million South African rand in miller revenue.
SA Canegrowers chief executive Thomas Funke said duty-paid sugar imports climbed sharply, from 1,619 tonnes between January and June 2022 to 124,594 tonnes during the same period in 2026.
At the same time, domestic sugar sales declined by 35%, or about 188,000 tonnes, over the three-season period. Grower proceeds fell by 1.33 billion South African rand, largely because of the burden created by exports, according to the industry.
Welcoming the government’s move, Mdluli said the industry would monitor whether the higher benchmark results in a meaningful reduction in imported sugar volumes.
The Department of Trade, Industry and Competition said the tariff review was being prioritised. However, it said the revised benchmark still required consultation with National Treasury before it could be gazetted.
Domestic producers, including Associated British Foods Plc’s South African unit, have pushed for a higher benchmark as the industry seeks greater protection from lower-priced imports.
Once gazetted, the revised DBRP is expected to provide the basis for higher duties when international sugar prices fall below the benchmark, subject to the applicable tariff process.
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Source : ChiniMandi
