The South African Sugar Association (SASA) said at a media briefing on Friday that sugar imports have become a major challenge for the sector. According to the association, about 163,000 tonnes of sugar were imported into South Africa between April and December 2025 during the current season, Business Report reported.
SASA said the surge in imports has prompted it to apply to the International Trade Administration Commission (ITAC) for an increase in the Dollar Based Reference Price (DBRP). The association has sought a revision of the benchmark price from $680 per tonne to $905 per tonne to protect local producers from cheaper imports.
Kulani Siweya, SASA’s National Market and Trade Policy Executive, said the current season, which is still ongoing, has seen unusually high sugar imports, particularly from Brazil, Thailand, Guatemala and India.
He said imports have reached 163,000 tonnes so far this season, displacing locally produced sugar. “For every tonne of imported sugar that replaces local sugar, the industry loses about R7,500. Between April and December, this has resulted in losses of around R1.3 billion,” Siweya said.
He added that the volume of imports this season is about 155 per cent higher than last season. With the season still underway and the protection level unresolved, SASA expects further imports in the coming months.
Siweya said SASA submitted its application to ITAC in October 2024, seeking a review of the DBRP. He explained that the current benchmark was last revised in 2018 and no longer reflects rising production costs. As a result, sugar priced below the existing threshold continues to enter the country and undercut local cane farmers.
“The review process is ongoing,” he said, adding that ITAC has launched an investigation to assess SASA’s request. The commission is also considering a separate application by the Beverage Association of South Africa seeking a reduction in the DBRP.
Siweya said an increase in the DBRP would help stabilise the industry by making imported sugar less competitive against locally produced sugar. This, he added, would reduce imports and offer some protection to domestic producers.
Pratish Sharma, a sugarcane grower from KwaZulu-Natal, said imported sugar has displaced locally produced sugar in the domestic market, leading to lower revenues across the industry. He said reduced earnings have also affected investment levels, making it harder for the sector to survive.
Sharma pointed to recent financial difficulties faced by companies such as Tongaat Hulett, which has applied for provisional liquidation, and Glenhow, which recently exited business rescue.
He said stronger protection through a revised DBRP is needed to support local farmers and stabilise the sugar industry.
