The review process of the sugar tariff by tariff advisory body International Trade Administration Commission of South Africa (Itac) must give full and proper regard to the risk facing rural jobs and livelihoods, says industry organisation the South African Canegrowers Association (SA Canegrowers).

A collapse in domestic sugar production as a result of heavily-subsidised cheap sugar imports entering South Africa would risk job losses and increased poverty, the industry body says.

The current dollar-based reference price (DBRP) for sugar is not appropriately calibrated to the country's market realities and has allowed a record surge of imported sugar to enter the country and displace locally-grown produce.

Not adjusting the DBRP to a fair level puts rural livelihoods at risk, SA Canegrowers says. It posits that it is critical that the DBRP is assessed against the realities of the global sugar market and continues to function as part of a fair South African trade policy.

Analysis by SA Canegrowers shows that 177 408 t of sugar for which duties were paid were imported into South Africa between January and November 2025, compared with less than 3 000 t in the same period in 2022.

This surge is despite the tariff on imported sugar being adjusted to align with the world sugar price, and this is a clear indicator that the DBRP, which is the mechanism to calculate the import tariff, is outdated, it says.

“A lower DBRP, which is industry organisation Beverage Association of South Africa's (BevSA's) application to Itac, may deliver short-term benefits to sugar importers and BevSA members, but the longer-term impact would decimate the domestic value chain.

“The global sugar price fluctuates, and the current low price will not last forever. Destroying the local sugar-producing industry for short-term gain is short-sighted and will only harm South Africa’s economy in the long run,” SA Canegrowers says.

The rural economies of KwaZulu-Natal and Mpumalanga depend on the 27 000 small-scale and 1 100 large-scale growers, which provide vital stability and economic activity in their communities.

More than one-million livelihoods depend on the sugar industry, and a lower tariff regime will result in a surge of imported sugar, which will push many growers out of business, the industry body says.

Growers are already experiencing significant financial losses owing to the surge of imports. In 2025, this impact was around R733-million, as imported sugar displaced locally-grown sugar in the market, it says.

“SA Canegrowers will participate constructively in the review process, and we urge Itac to ensure that the review process recognises that rural jobs and livelihoods are at risk in a country that cannot afford to push more people into poverty,” the industry organisation says.