The influx of cheap sugar imports to South Africa threatens the local sugar industry's survival. Urgent action is needed to revise tariffs and protect the livelihoods of over one million individuals reliant on this vital sector, says SA Canegrowers.
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The South African sugar industry is grappling with an influx of sugar imports that are severely undermining local production and threatening the livelihoods of thousands of workers, says SA Canegrowers.
Reports indicate that in January 2026 alone, over 24,600 tons of sugar entered the country from nations like Brazil, India, and Thailand, marking an alarming trend that has seen imports for that single month surpassing the total for entire previous years, specifically 2020, 2021, and 2022, according to data from SARS monitored by SA Canegrowers.
In light of this escalating situation, industry leaders are calling on President Cyril Ramaphosa to raise the issue with Brazilian President Luiz Inacio Lula da Silva. “We urge President Ramaphosa to push for an immediate cessation of sugar imports from Brazil,” said Higgins Mdluli, chairman of SA Canegrowers. “South Africa has the capacity to be self-sufficient in sugar production, and these imports are eroding our industry.”
The past year saw nearly 200,000 tons of imported refined sugar entering South Africa, a sharp increase attributed to low global sugar prices, a favourable rand/dollar exchange rate, and the inadequacy of local import tariff protections. Early figures from 2026 suggest this trend is not only continuing but amplifying, with existing tariff adjustments failing to stabilise the domestic market.
“This surge of imported refined sugar is displacing locally grown and produced sugar from the South African market,” Mdluli explained. The financial implications are staggering; the local sugar industry is losing more than R7,000 for each ton of locally produced sugar displaced by imports, leading to an estimated R1.5 billion loss for the 2025/26 season, a blow to the industry during a particularly vulnerable time.
The repercussions of these imports extend beyond financial losses. The South African sugar sector sustains over one million livelihoods and is vital to the economies of rural communities, particularly in KwaZulu-Natal and Mpumalanga. Mdluli emphasised the need for a robust tariff framework that enables fair competition against subsidised imports, saying, “Ensuring a fair trading environment for locally produced sugar is critical if the industry is to remain viable and continue supporting growers, workers, and communities.”
Last week, Trade, Industry, and Competition Minister Parks Tau met with various stakeholders from the sugar industry, along with representatives from ITAC (International Trade Administration Commission), which oversees tariffs. However, the increasing volume of imports is not the sole threat. The potential liquidation of Tongaat Hulett, coupled with rising oil prices, has heightened concerns regarding the sector's future stability.
Addressing the crisis at Tongaat Hulett is deemed essential for the industry’s resilience. The company operates three mills and functions as South Africa’s sole stand-alone sugar refinery, producing a quality of sugar that is integral for food and beverage manufacturers. “Resolving the Tongaat Hulett crisis is essential for the stability of the industry,” Mdluli noted, underpinning that even if a solution is found for Tongaat Hulett, it would need to operate within a regulatory environment that ensures robust protection against foreign imports.
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