The local sugar sector faces steep competition from cheap imports, prompting urgent calls for government and industry-wide intervention.
SOUTH AFRICA – South Africa’s sugar industry is facing increasing pressure from cheap imported sugar, a threat that could result in widespread job losses and economic setbacks in rural communities.
This warning was issued by SA Canegrowers following its Annual General Meeting held in Umhlanga, KwaZulu-Natal, where Mpumalanga farmer Higgins Mdluli was re-elected as chairperson for another one-year term.
Speaking after his re-election, Mdluli acknowledged the critical period the industry is currently navigating. “It is an honour to be re-elected to serve as chair of the SA Canegrowers board at such a critical time for our industry,” he said.
“I look forward to continuing work with growers, partners, and stakeholders to build a sustainable, inclusive, and resilient sugar sector that supports rural livelihoods and drives agricultural and economic growth in South Africa.”
However, Mdluli highlighted growing concern over the influx of imported sugar being sold in South Africa at prices well below global market rates and local production costs. These imports, he said, are largely the result of state subsidies in producing countries and sugar dumping practices.
“Foreign sugar is currently entering South Africa at prices below the cost of production and below the global sugar price,” Mdluli stated. “This is due to some foreign governments subsidising their sugar industries or offloading excess sugar at a loss.”
SA Canegrowers estimates that local farmers lose up to R6,000 in income for every tonne of imported sugar.
With mill closures, adverse weather, and the effects of the sugar tax already weighing on the sector, the growing threat of imports poses a severe risk to employment and the viability of sugarcane farming, especially in KwaZulu-Natal and Mpumalanga.
The organisation called for immediate government support and collaboration across all sectors to address the crisis. “Local canegrowers need greater protection from unfair sugar dumping and subsidised cheap imports,” said Mdluli.
“We call on government, industry players, commercial end-users, and consumers to stand with South African sugarcane growers.”
SA Canegrowers also reaffirmed its commitment to the upcoming revision of the Sugarcane Value Chain Master Plan 2030, which aims to provide long-term security for the sector.
In May 2025, the organisation welcomed proposed regulatory exemptions by the Department of Trade, Industry and Competition (DTIC), allowing direct agreements between retailers, producers, and millers.
This exemption, if approved, would support fair pricing and coordinated planning while ensuring compliance with competition laws.
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