A huge surge in subsidised sugar imports is threatening local producers and local jobs, according to the SA Canegrowers association.
Sugar imports this year are already 400% higher than 2024 levels, the association said in a statement. It called for additional action to curb sugar imports, saying a recent tariff adjustment had failed to stop a flood of heavily subsidised imports.
Increased import volumes had led to a drop of more than 100 000 tons in the volume of locally produced sugar sold or used by commercial end users, and a loss of more than R760 million for the local sugar industry.
”SA Canegrowers represents the 24,000 small-scale and 1,200 large-scale sugarcane growers in South Africa. The livelihoods of these growers, and the families and communities they support, are under threat.”
Countries like Brazil and India subsidised both the production and export of sugar. This resulted in exported sugar prices that did not reflect true production value.
“Opportunistic importers bring this sugar into South Africa and sell the sugar at prices similar to locally produced sugar, thereby pocketing huge profits at no benefit to consumers.”
The canegrowers called on consumers, retailers, and food and drinks manufacturers to commit to buying locally grown sugar. It also urged the government to enact stronger trade measures to protect the local industry to scrap the sugar tax.
Consumers were urged to check packaging to ensure that they were buying sugar grown or produced in South Africa, and not merely “packed” in South Africa.
Editorial comment:
FairPlay notes the similarity to the subsidised imports afflicting South Africa’s poultry industry. There, too, importers are accused of bringing in unfairly priced and dumped chicken imports at prices that are not passed on to consumers.
Instead, importers and middlemen make huge profits. Chicken importers have been called many things, but “opportunistic” is not one of them.
