Parliament Media Statement: Committee on Trade Warns That Tongaat Hulett Crisis Threatens Sugar Industry Progress

Parliament, Tuesday, 2 June 2026 – The Portfolio Committee on Trade, Industry and Competition has welcomed progress made under the Sugar Value Chain Master Plan but warned that the future of Tongaat Hulett remains a major threat to the industry’s recovery. The committee received briefings from the Department of Trade, Industry and Competition (DTIC) and the South African Sugar Association (SASA) today on the implementation of the Sugar Value Chain Master Plan and diversification proposals. The first phase of the Master Plan, which ended in March 2025, was aimed at stabilising the industry, job retention, small-scale grower support, transformation, local market restoration, price restraint, trade protection, restructuring and diversification planning. A second phase was signed in April this year and will focus on structural reform, employment retention, long-term competitiveness, diversification, transformation and inclusive growth. The committee welcomed several achievements made during the first phase. Local sugar sales increased from 1,25 million tons to 1,55 million tons and increased the proportion of local purchases by downstream users to 98% of sugar used, which resulted in the growth of the local market. In addition, there have been expanded efforts to support the 12 000 small-scale growers and increase transformation funding available to them. It also welcomed the finalisation of amendments to the sugar industry regulations in 2025. Despite these gains, the committee noted that the industry still faces several challenges, such as: (i) import pressures from cheap sugar imports; (ii) funding uncertainty to enable the implementation of the Master Plan; (iii) the finalisation of pricing and trade protection measures; (iv) diversification risks; and (v) the impact of the possible liquidation of Tongaat Hulett. Industry players have proposed the introduction of safeguards against cheap deep-sea imports, which is currently before the International Trade Administration Commission (ITAC). ITAC was also finalising its investigation on the need to adjust the dollar-based reference price for sugar. Given Tongaat Hulett’s contribution to the industry, rural development and jobs, the committee emphasised that government and the private sector should join hands to save the company. It welcomed the Industrial Development Corporation’s (IDC) financial support for the sugar mill. However, it urged the IDC to exercise leadership to support Tongaat Hulett’s removal from both business rescue and the court process for liquidation. Committee Chairperson Mr Mzwandile Masina emphasised that this support should be provided in an accountable, responsible and transparent manner. “Flexibility within the sugar value chain was essential to ensure its long-term sustainability. Therefore, viable diversification options that facilitated inclusive growth and transformation are critical,” he said. Mr Masina acknowledged that an enabling biofuels regulatory framework, similar to that of Brazil and India, was critical to facilitate these options. ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MR MZWANDILE MASINA. For media enquiries, please contact the committee’s Media Officer: Name: Ms Faith Ndenze Parliamentary Communication Services Cell: 081 377 0686 Email: fndenze@parliament.gov.za Article Source: Parliament of the Republic of South Africa