Industry organisation the South African Cane Growers Association (SA Canegrowers) has called on President Cyril Ramaphosa to, in his State of the Nation Address on February 9, announce substantial additional measures to save the one-million livelihoods that depend on the sugar industry.

The disbursement by the South African Sugar Association of more than R79-million in transformation funding for small-scale growers at the end of January brings the total for transformation funding this season to R216-million.

"While this funding is vital, it will not be enough to save the country’s more than 21 000 small-scale growers owing to a number of headwinds facing the industry," says SA Canegrowers chairperson Andrew Russell.

This transformation funding, of which canegrowers contribute 64%, also falls under the commitment made by the industry to invest R1-billion into transformation interventions over five years. This programme is in its fourth year, with more than R800-million paid to date. A further R60-million is paid each year under the Sugarcane Value Chain Masterplan, which is a social compact between the industry, government and value chain stakeholders, he adds.

To date, government has not provided any information on its progress in fulfilling its commitment under the masterplan to promote the procurement of locally produced sugar in all government departments and State-owned entities. Nor has there been any indication that government is revaluating the Health Promotion Levy (HPL) in accordance with the masterplan commitment, namely reviewing the industry’s tax policy.

"These are two of the measures that are within government’s exclusive authority that can provide significant relief to embattled sugarcane growers, workers and dependent communities," Russell says.

"Where the President leads, government will follow. He must make clear the importance of the sugar industry in particular and of rural economies in general.

"SA Canegrowers is therefore calling on President Ramaphosa to use his [State of the Nation Address] to highlight the measures that government is taking to match the industry’s commitment to saving South African growers, businesses and jobs," he says.

Government's steps should include scrapping the job-killing HPL, reiterating its commitment to procuring only locally produced sugar and ensuring departments are complying, and providing short-term relief to growers to mitigate the impact of loadshedding including a higher diesel rebate and tax incentives for alternative energy sources.

"The industry remains committed to ensuring the success of the Masterplan and working in partnership with government in order to ensure the industry survives the current turmoil and valuable livelihoods are preserved," he added.

Sugarcane growers have suffered tremendously in recent years as a result of destructive unrest in KwaZulu-Natal, devastating floods and skyrocketing input costs. This was all exacerbated by the placement of sugar milling giant Tongaat Hulett under business rescue in October 2022.

SA Canegrowers data revealed that the industry is expected to lose R723-million in 2023 alone as a result of loadshedding-related irrigation challenges.

"As growers strain under the weight of these challenges, the industry is making every effort to support the most vulnerable industry participants. We need to hear from the President that government is doing the same," Russell says.