Illovo Sugar urges government to implement revised import price amid rising sugar imports
Illovo says delays to revised sugar import protection are putting pressure on growers, millers, jobs and rural economies across South Africa.
SOUTH AFRICA – Illovo Sugar South Africa has raised concern over the continued delay in publishing and implementing the revised Dollar-Based Reference Price (DBRP) for imported sugar, despite the completion of the review by the International Trade Administration Commission (Itac).
The company said the delay was creating uncertainty for an industry facing economic pressure from rising import volumes, higher input costs and inflation.
The South African Sugar Association (Sasa) submitted an application to Itac in October 2024 seeking an increase in the DBRP from US$680 per tonne to US$905 per tonne. Illovo said the two-year review had been completed, but the revised reference price was still awaiting gazetting and implementation.
“Every month of delay has real consequences for the sustainability of the South African sugar industry,” Illovo said.
The company said import volumes continued to increase during the review period, placing additional pressure on local sugar growers and millers. In the 2024/25 season, 213,322 tonnes of sugar from outside the Southern African Customs Union were imported into South Africa.
According to Illovo, the imports reduced revenue among growers by approximately R1 billion and among millers by about R500 million.
“The delay in implementing the revised DBRP means that the industry remains exposed to unfairly priced imports at a time when production costs continue to rise,” Illovo said.
The company added that the situation was undermining local producers and eroding the financial viability of an industry supporting rural economies and livelihoods.
The South African sugar industry supports about 65,000 direct and 270,000 indirect jobs across its value chain. These include growers, millers, transporters, contractors, security providers and small businesses in cane-growing regions.
Illovo said delays in implementing the revised protection mechanism were placing these jobs and rural communities increasingly at risk across South Africa.
The company called on government to urgently gazette and implement the revised DBRP. It also urged authorities to consider interim safeguard measures available through Itac mechanisms and ensure future reviews are completed within reasonable timelines.
Illovo also called for a responsive tariff framework aligned with market conditions and able to respond quickly to import surges.
Illovo Managing Director Ricky Govender said the industry had engaged constructively throughout the review process and was now seeking urgent action.
“The sugar industry has engaged constructively and in good faith throughout the review process. What is now required is urgent action to implement the outcome of that process,” Govender said.
“Every day of delay further weakens an industry that supports hundreds of thousands of livelihoods and contributes significantly to rural economic activity,” he added.
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