South Africa weighs a second line of defence for sugar growers
MZINTI — South Africa is considering further controls on sugar imports after raising the import duty from R4.83 to R6.97 a kilogram in August. The government is weighing import controls to stabilise the industry. The higher duty already applies, while the form and timing of any additional restrictions remain unconfirmed.
Why the tariff matters to growers and buyers
South Africa imported 94,984 tonnes of sugar between January and May 2026, up from 55,213 tonnes in the same period a year earlier, according to South African Revenue Service figures as reported. The South African Sugar Association estimates that competition from imports cost the local industry R1.6 billion in the 2025/26 season.
Growers and beverage manufacturers sought different outcomes from the tariff review. The sugar association asked the International Trade Administration Commission to raise the reference price used to calculate the duty from US$680 to US$905 a tonne. The Beverage Association of South Africa applied for a reduction. Government settled on US$785 a tonne, giving local mills more protection while making imported sugar more expensive for manufacturers that use it.
Mills face a supply problem at home
The tariff took effect as local mills were losing production time. A strike halted cane crushing for several weeks during the peak season, prompting the US Department of Agriculture’s Pretoria office to cut its estimate for South African sugar output. It also lowered its import forecast following the tariff increase. For food and beverage producers, the outcome depends partly on how much sugar domestic mills can supply as imports become more expensive.
Government’s longer-term plan is to give growers more than one market for their cane. Ahead of the 30 October growers’ dialogue in Mzinti, Trade, Industry and Competition Deputy Minister Zuko Godlimpi identified ethanol for fuel blending, sustainable aviation fuel, bioplastics and electricity generation as potential uses. Those markets are still being explored. For growers selling the current crop, mill capacity and competition from imported sugar remain the more immediate concerns.
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