SA Canegrowers calls for sugar tax abolition as imported sugar threatens South Africa’s sugar industry 

SOUTH AFRICA – SA Canegrowers has urged the South African government to urgently abolish the sugar tax, warning that a sharp rise in imported sugar is crowding out locally produced supply and threatening the long-term survival of the domestic sugar industry. 

The organisation said the sugar sector supports more than one million livelihoods, both directly and indirectly, across KwaZulu-Natal and Mpumalanga. The industry is anchored by around 27,000 small-scale growers and 1,100 large-scale sugarcane farmers.  

However, SA Canegrowers said the sector has come under intense pressure over the past year due to rising input costs, volatile global markets and weakening demand. 

According to SA Canegrowers, the sugar tax has compounded these challenges by suppressing local demand for sugar, further weakening an industry already under strain.  

The group is calling on government, industry stakeholders and consumers to work together to protect a sector that plays a critical role in rural economies. 

SA Canegrowers chairperson Higgins Mdluli said imported sugar is often heavily subsidised in exporting countries, allowing it to enter South Africa at artificially low prices. “The main beneficiaries are the import agents, who can earn high short-term profits by selling the sugar at local market prices,” Mdluli said. 

Figures from the South African Revenue Service (SARS) show that 153,344 tonnes of subsidised sugar were imported between January and September 2025. This compares with 20,924 tonnes during the same period in 2020. Imports had previously peaked in 2024 at 55,213 tonnes over the same timeframe. 

SA Canegrowers said the global sugar market remains characterised by persistent oversupply and distorted trade conditions. Major exporting countries are able to dispose of surplus sugar at low prices due to subsidies, favourable currency movements and subdued global demand. 

“In this context, protecting South Africa’s domestic market is essential,” Mdluli said. “Without effective safeguards, local growers are forced to compete with dumped imports while also contending with policies that suppress domestic demand.” 

He added that allowing imported sugar to replace local production “undermines food security, weakens rural economies and puts a strategic agricultural sector at long-term risk”. 

The organisation has reiterated its opposition to the sugar tax, arguing that while it supports public health initiatives, there is no evidence the levy has delivered meaningful health benefits.  

“The sugar tax is an untested policy experiment with serious consequences for rural employment and investment,” Mdluli said. “Future decisions should be based on a balanced assessment of health data and calorie intake among South Africans, alongside the impact on the economy and the sustainability of local food production.” 

SA Canegrowers is calling on government to ensure fair trade conditions through the proper enforcement of import protection measures and to engage with the industry on policies affecting its future.  

Consumers have also been encouraged to support locally produced sugar and recognise the broader social and economic importance of the industry. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.