News Agriculture

South African sugar industry warns of rising low-cost imports            

South African sugar industry warns of rising low-cost imports            
Monday, 10 November 2025 05:04
  • Sugar imports rose to 149,099 tons between January and August 2025.
  • Local producers report a 100,000-ton drop in domestic sales.
  • SA Canegrowers urges stronger protection and end of sugar tax.

The South African Canegrowers Association (SA Canegrowers) has raised concerns over a surge in sugar imports since the start of the year. In a statement released on November 4, the group said sugar imports reached 149,099 tons between January and August 2025, up from only 35,730 tons during the same period in 2024. This is more than a fourfold increase.

The association said the influx of low-priced sugar, mainly from Brazil, the world’s largest producer and exporter, is severely undermining the competitiveness of local producers.

According to estimates, domestic sugar sales have fallen by 100,000 tons in the first eight months of 2025 compared with last year, threatening the entire value chain. “For every ton of foreign sugar sold in South Africa, the local industry loses R7600. Considering the drop in local sugar sales in excess of 100 000 tons, this loss equates to more than R760 million Rand to the local sugar industry,” the group stated.

Although South Africa has a mechanism that allows tariffs to be imposed on imported sugar when prices fall below a set threshold, SA Canegrowers considers it insufficient.

“Countries like Brazil and India subsidise their sugar industry, and further subsidise exported sugar, resulting in exported sugar prices that do 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 organization warned. It has launched the “Home Sweet Home” campaign to encourage consumers to buy locally produced sugar.

In addition to calling for stronger protection measures, SA Canegrowers is urging the government to remove the sugar tax implemented on April 1, 2018, which it says has also caused job losses.

The warning comes as the industry approaches the fifth anniversary of the South African Sugar Value Chain Master Plan, signed in November 2020 and running through 2030. Observers say structural challenges are slowing progress toward key goals, including boosting sugar output and investing in derivative products such as biofuels.

The South African sugar industry is valued at nearly 25 billion rand ($1.4 billion) and provides direct and indirect employment to about 300,000 people.

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