The International Trade Administration Commission (ITAC) of South Africa will be taking a review of the dollar-based reference price for sugar as the commodity import has put heavy pressure on the local sugar industry, reports Food Business Middle East & Africa.
The decision was published in a government gazette following separate and opposing requests from industry groups on how the reference price should be changed.
The South African Sugar Association (SASA) has asked for the reference price to be increased to $905 per ton from the current $680 per ton. The group said stronger protection is needed to protect local sugarcane growers and millers from low-priced imported sugar.
On the other hand, the Beverage Association of South Africa (Bevsa) has proposed lowering the reference price to between $552 and $650 per ton. Bevsa said a lower benchmark would help reduce cost pressures faced by beverage makers, bottlers and consumers.
Under South Africa’s trade system, when imported sugar is priced below the reference level, additional duties can be imposed. When prices are above the reference, those duties can be reduced or removed.
In the gazette notice, the Department of Trade, Industry and Competition said that assessing both applications together would be the most effective and fair way to deal with the differing requests. The notice confirmed that ITAC has decided to launch a full investigation on its own initiative.
The country’s sugar industry has been under strain for several years due to what industry groups describe as large volumes of subsidised sugar imports, along with the impact of South Africa’s sugar tax on sweetened drinks, which has reduced demand from beverage manufacturers.
National sugar production has dropped by nearly 25% in the last 20 years, while the number of sugarcane farmers has fallen by about 60%.
International sugar prices have also declined, with raw sugar futures trading close to a five-year low of around US$0.149 per pound, or roughly $329 per ton.
Figures from the South African Canegrowers Association show that 153,344 tonnes of what it described as heavily subsidised sugar were imported between January and September 2025. This compares with a previous high of 55,213 tonnes over the same period in 2024.
SASA executive director Sifiso Mhlaba said the association supports the broader investigation. He said the industry has been informed that more sugar imports are expected in the coming months and noted that the sector has already suffered significant damage since SASA first applied to ITAC in October 2024. He said the association hopes the investigation and final decision will be completed quickly.
ITAC has called on all interested parties across the sugar value chain to submit comments and additional information as the investigation continues.
