South Africa is poised to raise its dollar-based reference price (DBRP) for imported sugar from $680 per ton to $905 per ton. This anticipated increase aims to protect the local sugar industry from a surge of cheap imports, which have significantly impacted domestic producers. The International Trade Administration Commission of South Africa (ITAC) had concluded its review of the DBRP, but the implementation has faced delays, causing concern among local sugar manufacturers like Illovo Sugar South Africa.
The delay in implementing the revised DBRP has had severe consequences for the South African sugar industry. For example, in the 2024/25 season, 213,322 tons of sugar were imported from outside the Southern African Customs Union, leading to an estimated revenue loss of R1 billion for growers and R500 million for millers. The South African Sugar Association (SASA) initially applied for the increase to $905 per ton in October 2024, citing the need for industry sustainability. However, the Beverage Association of South Africa (BevSA) counter-proposed a reduction to a range of $552-$650, arguing that current duties negatively affect beverage producers and consumers.
The ongoing influx of subsidized sugar from countries like Brazil, India, and Thailand has intensified the crisis. Data from SA Canegrowers indicates that sugar imports in the first five months of 2026 nearly doubled compared to the same period in 2025, with 94,984 tons imported versus 55,213 tons. This displacement of local sugar has led to a significant slump in domestic sales, with local sales between April and June showing a decrease of over 45,000 tons compared to 2025. The industry, which supports approximately 65,000 direct jobs and 270,000 indirect jobs, stresses that every week of delay in adjusting the DBRP costs hundreds of millions of rand in lost sales, further eroding the financial viability of local producers and threatening rural livelihoods.
