South Africa to raise sugar import reference price to US$785
The revised benchmark follows a sharp increase in sugar imports and mounting losses for South African growers and millers, according to industry figures.
SOUTH AFRICA – South Africa is set to raise the dollar-based reference price (DBRP) used to calculate duties on sugar imports, as rising volumes of cheaper foreign sugar put pressure on local growers, mills and rural jobs.
Finance Minister Enoch Godongwana approved the measure earlier this week, with the revised level expected to be published in the Government Gazette. The DBRP is expected to increase to $785 per tonne from $680, according to Bloomberg, citing people familiar with the matter.
The move follows a review by the International Trade Administration Commission of South Africa (ITAC), after the South African Sugar Association (SASA) applied in 2024 to increase the benchmark from $680 to $905 per tonne.
The DBRP is intended to protect domestic sugar producers when international prices fall below a specified level. SASA has argued that the existing benchmark is outdated because production costs have increased significantly while the reference price has remained largely unchanged since 2018.
Import volumes have increased sharply. South Africa imported 94,984 tonnes of sugar between January and May 2026, compared with 55,213 tonnes during the same period in 2025.
SA Canegrowers chair Higgins Mdluli described the situation as a crisis.
“Every tonne of locally produced sugar displaced by an import is a direct hit to a grower’s income, a mill’s viability and a rural community’s stability,” Mdluli said.
Imports from outside the Southern African Customs Union reached 213,322 tonnes during the 2024/25 season. According to industry figures, this contributed to estimated losses of about R1 billion in grower revenue and approximately R500 million in miller revenue.
SA Canegrowers chief executive Thomas Funke said duty-paid imports increased from 1,619 tonnes between January and June 2022 to 124,594 tonnes during the same period in 2026.
Over the same period, local sugar sales fell 35%, or about 188,000 tonnes, across three seasons. Grower proceeds declined by R1.33 billion, largely due to the export burden.
“We are encouraged that government has acted, but we will be watching closely over the coming months to see whether this adjustment translates into a genuine reduction in the volume of imported sugar entering the country,” Mdluli said.
The Department of Trade, Industry and Competition said the tariff review was being prioritised, but the revised benchmark required consultation with National Treasury before gazetting.
“The department is in consultation with National Treasury on the matter as it requires some concurrence before it is gazetted,” DTIC spokesperson Kaamil Alli said.
The higher benchmark has been sought by domestic sugar producers, including Associated British Foods Plc’s South African unit, as the industry seeks protection from cheaper imports.
The government’s decision follows sustained calls from growers and millers for measures to address rising imports and support local sugar production.
The revised DBRP is expected to provide the basis for higher duties when imported sugar prices fall below the benchmark, subject to the gazetting process.
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