SA Canegrowers Warns Sugar Tax Threatens Local Industry Amid Surge in Imports

South Africa’s sugar industry is under mounting pressure as imported sugar floods the market, and SA Canegrowers is calling on the government to scrap the sugar tax to protect local producers. The organisation warns that cheap, subsidised imports are displacing locally produced sugar, putting over one million livelihoods at risk.

In a recent statement, SA Canegrowers highlighted the role of the sugar sector in supporting rural economies across KwaZulu-Natal and Mpumalanga. The industry comprises approximately 27 000 small-scale and 1 100 large-scale growers, forming the backbone of a value chain that contributes significantly to jobs and economic stability in these regions.

The organisation stressed that the sugar tax adds to an already challenging environment. Rising input costs and volatile global sugar markets have placed local producers under severe pressure. Higgins Mdluli, chairman of SA Canegrowers, noted that imported sugar is often heavily subsidised in exporting countries, with only import agents benefiting from short-term profits while local producers face declining demand.

Data from SARS shows that South Africa imported 153 344 tons of subsidised sugar between January and September 2025, a dramatic increase from 20 924 tons over the same period in 2020 and 55 213 tons in 2024. SA Canegrowers warns that this surge is destabilising the local market and threatening long-term sustainability.

Global sugar markets are currently marked by oversupply and distorted trade, with major exporting countries able to sell sugar at artificially low prices. This forces South African growers to compete with dumped imports while policies like the sugar tax reduce local demand. Mdluli emphasised that protecting the domestic market is crucial to safeguard food security, rural livelihoods, and the strategic importance of the sugar sector.

SA Canegrowers produces sufficient sugar to meet local demand, meaning imports displace homegrown sugar on retail shelves and in the food and beverage industry. The organisation describes the sugar tax as an untested policy with serious consequences for rural jobs and investment. They call for future policy decisions to balance health objectives with economic impact and the sustainability of local food production.

“Saving the sugar industry is not just about growers; it is about communities, jobs and South Africa’s ability to produce its own food. By standing together now, we can protect a strategic sector and secure a more sustainable future for generations to come,” Mdluli said. SA Canegrowers urges government, industry partners and consumers to act decisively to support local sugar producers and prevent further erosion of a sector that underpins many rural economies.