South Africa launches sugar price review as import surge puts pressure on local producers 

SOUTH AFRICA – South Africa’s International Trade Administration Commission (ITAC) has announced it will review the dollar-based reference price for sugar following a surge of imports that has placed severe pressure on the country’s domestic sugar industry.  

The move was published in a government gazette after industry bodies submitted conflicting applications over how the reference price should be adjusted. 

The South African Sugar Association (SASA) has called for the reference price to be raised to US$905 per ton from the current US$680 per ton, arguing that higher protection is needed to shield local growers and millers from cheap imports.  

In contrast, the Beverage Association of South Africa (Bevsa) has asked for the benchmark to be lowered to a range of US$552 to US$650 per ton to ease cost pressures on beverage producers, bottlers and consumers. 

Under South Africa’s trade rules, when imported sugar prices fall below the reference level, the government can impose additional duties. If prices are above the reference, duties may be reduced or removed altogether. 

In the gazette notice, the department of trade, industry and competition said a combined assessment of the two applications “represents the most efficient and equitable approach to address the diverging requests,” confirming that ITAC has decided to self-initiate a comprehensive investigation. 

South Africa’s sugar sector has been struggling with what industry groups describe as a flood of subsidised imports and the impact of the country’s sugar tax on sweetened beverages, which has cut demand from beverage manufacturers.  

Over the past two decades, national sugar output has fallen by nearly a quarter, while the number of sugarcane farmers has declined by about 60%. 

Global prices have also weakened, with raw-sugar futures trading near a five-year low of about US$0.149 per pound, equivalent to roughly US$329 per ton. 

Data from the South African Canegrowers Association shows that 153,344 tonnes of “heavily subsidised” imported sugar entered the country between January and September 2025, compared with a previous high of 55,213 tonnes during the same period in 2024. 

Sifiso Mhlaba, executive director of SASA, said the association welcomed the wider probe. “We’ve been told that more imported sugar can be expected in the next three months. Our industry has suffered a lot of damage already from sugar imports since we submitted our initial application to ITAC in October 2024. So, we are hoping for a quick resolution to ITAC’s investigation and decision,” he said. 

ITAC has invited all interested parties across the sugarcane value chain to submit comments and additional information as the investigation continues. 

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