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SASA Welcomes Reference Price Increase, but Remains Concerned That It is Not Enough to STEM Deep-Sea Sugar Imports Tide
The South African Sugar Association (SASA) welcomes the upward adjustment of the Dollar- Based Reference Price (DBRP), a development which comes at the time when the industry is facing a sugar import crisis.
“We would like to express our gratitude to Trade, Industry and Competition Minister Parks Tau, Deputy Minister Zuko Godlimpi and the senior officials from both the DTIC and National Treasury for the critical role they played in the finalisation of the tariff matter,” said Trix Trikam, SASA Vice-Chairperson. However, Trikam pointed out that the level of the reference price increase would not sufficiently protect the local industry against imports from subsidised countries such as Brazil.
Trikam stated: “In our application (which we lodged in October 2024) to ITAC, we had requested that the DBRP be increased from $680 to $905 per ton. Based on our calculations and analysis, the envisaged level (of $905) would have accorded us adequate protection against the devastating sugar imports. Therefore, the gazetted DBRP of $785 per ton falls short of what constitutes an adequately calibrated tariff. Sugar imports have been wreaking havoc in the industry. For example, we lost R1.6 billion in the 2025/2026 season due to the sugar import crisis. So far, in the 2026/2027 season, as of June 2026, imports stood at 74 652 tons – the current industry losses equal just more than half a billion rand (R560 million).”
SASA will study the ITAC report once published and continue collaborative engagements with government with a view to exploring additional mechanisms to support the continued sustainability of the industry, which is central to the rural economies of KwaZulu-Natal and Mpumalanga. The sugarcane growing and milling sectors are responsible for the livelihoods of at least one million people in both provinces. The industry creates 65 000 direct and 270 000 indirect jobs.
ISSUED BY SASA EXTERNAL AFFAIRS DIVISION
For more information or media enquiries, please contact:
CEDRIC MBOYISA
Group Communications and Media Manager
E-mail: Cedric.Mboyisa@sasa.org.za
