Source: Ukragroconsult (Ukraine)
South Africa sugar industry crisis deepens as the South African Sugarcane Growers Association (SASG) calls on the government to immediately repeal the sugar tax. Moreover, the organization states that the sharp increase in cheap imported sugar is displacing local production and exacerbating the crisis facing South Africa’s sugar sector, Cape Business News reports.
South Africa Sugar Industry Crisis: Employment and Economic Impact
The sugar industry employs over a million people in the provinces of KwaZulu-Natal and Mpumalanga. Furthermore, it includes approximately 27,000 smallholder farmers and 1,100 large-scale producers. Over the past year, producers have faced increasing pressure due to rising agricultural costs, unpredictable global prices, and weak domestic demand. Consequently, the organization claims the sugar tax has exacerbated these problems.
Import Surge and Trade Data
According to the South African Revenue Service, 153,344 tonnes of sugar were imported between January and September 2025. Additionally, this is significantly higher than the 20,924 tonnes imported during the same period in 2020. The previous high was 55,213 tonnes, set in 2024.
Industry Response and Policy Demands
Higgins Mdluli, head of the South African Sugarcane Association, stated that a significant portion of imported sugar receives government support in exporting countries. Therefore, this allows importers to sell it locally at competitive prices. He warned that local farmers are finding it difficult to compete with these imports. Meanwhile, the sugar tax continues to limit domestic demand.
The South African Sugarcane Association is calling on the government to strengthen import protection measures. Furthermore, they seek to collaborate more closely with the industry.