SA Canegrowers Calls for Government Action to Protect Farmers and the Sugar Industry

The South African Canegrowers Association (SA Canegrowers) has urgently called on President Cyril Ramaphosa to intervene and stabilize the country’s sugarcane sector, which supports roughly 25 000 growers and six major sugar milling companies. The immediate threat comes from the potential provisional liquidation of sugar milling giant Tongaat Hulett, a situation that could have devastating consequences for farmers, workers, and rural communities. SA Canegrowers has written to multiple government departments, including Finance, Trade, Industry and Competition, Agriculture, and Public Works and Infrastructure, requesting coordinated action to preserve operations and protect livelihoods. The association emphasizes that without immediate intervention, farmers face reduced income, job losses, and disruption to the sugarcane value chain. This appeal underlines the importance of the sugarcane sector for food security, rural employment, and regional economic stability.

Farmers are directly impacted by multiple pressures on the industry, including the continued dumping of imported sugar, which lowers domestic prices, and the eight-year-old sugar tax, officially known as the health promotion levy. The tax has reportedly cost the industry 16 000 jobs and R2 billion in revenue in 2018 alone, with little evidence of health benefits. SA Canegrowers stresses that these factors make it increasingly difficult for growers to maintain operations, invest in farm improvements, or plan for sustainable production. Higgins Mdluli, chairperson of SA Canegrowers, highlights that the cost of stabilizing Tongaat Hulett now is far lower than the long-term expense of rebuilding the value chain if it collapses. Ensuring the operational continuity of the company is essential not just for the company itself, but for the survival of thousands of farmers whose livelihoods depend on it.

The association has proposed practical interventions that would directly benefit growers. These include government support to keep Tongaat Hulett’s mills and refinery operational, which ensures that farmers have consistent buyers for their sugarcane. SA Canegrowers also calls for a review of the dollar-based reference price for sugar imports, which would help level the playing field for local growers and reduce losses caused by cheaper imported sugar. Removing the sugar tax would allow farmers to retain more income and reinvest in their farms, improving productivity and long-term sustainability. These measures would help stabilize the domestic market, protect farmer revenues, and prevent further job losses in rural communities.

Beyond immediate stabilization, SA Canegrowers emphasizes the need to follow the Sugarcane Value Chain Master Plan to 2030. For farmers, this plan includes commitments to procure locally produced sugar, align production with Southern African Development Community (SADC) markets, and support value-added projects such as sustainable ethanol production for green fuels. These initiatives create opportunities for farmers to diversify income streams, increase farm profitability, and participate in industrial projects that rely on sugarcane. By linking farm production to national policy and industrial development, the government can help growers access new markets, improve economic resilience, and secure livelihoods for rural households.

SA Canegrowers’ call to action illustrates the critical link between policy decisions and day-to-day farming operations. Urgent, coordinated intervention can protect growers from income loss, job insecurity, and market disruption, while supporting long-term sustainability and productivity. For smallholder and commercial sugarcane farmers alike, these measures are essential to ensure reliable sales channels, stable pricing, and continued investment in farm improvements. Preserving the sugarcane sector protects both rural livelihoods and national agricultural output, making the government’s response a vital step in securing South Africa’s farming economy. By acting now, policymakers can safeguard farmers, stabilize the industry, and strengthen the sugarcane value chain for the future.