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South Africa has raised the Dollar-Based Reference Price (DBRP) for sugar imports from US$680 to US$785 per tonne, providing relief to domestic producers but falling short of the level sought by the sugar industry.
The increase follows a review by the International Trade Administration Commission (ITAC) of competing proposals from the sugar and beverage industries. The South African Sugar Association (SASA) had sought an increase to US$905 per tonne, while the Beverage Association of South Africa proposed reducing the benchmark to between US$552 and US$650.
ITAC said neither proposal adequately balanced the interests of domestic sugar producers, downstream users, consumers and South Africa’s World Trade Organization commitments.
The commission noted that the domestic industry was facing volatile sugar prices, rising production costs and declining production and profitability, while imports, particularly from Brazil, had increased.
Under the DBRP system, a variable import duty is imposed when the international sugar reference price falls below the benchmark. ITAC’s initial calculation puts the duty under the revised benchmark at about R6,979 per tonne, or 697.92 cents per kg.
SA Canegrowers welcomed the increase but warned that it may not be sufficient to reverse the surge in imports. According to the organisation, duty-paid sugar imports rose from 1,619 tonnes between January and June 2022 to 124,594 tonnes during the same period in 2026.
It also said domestic sugar sales had fallen by about 188,000 tonnes, or 35%, over three seasons, while grower proceeds declined by R1.33 billion.
“We are encouraged that government has acted, but we will be watching closely over the coming months to see whether this adjustment translates into a genuine reduction in the volume of imported sugar entering the country,” said SA Canegrowers chairman Higgins Mdluli.
Illovo Sugar South Africa was more critical, saying the revised benchmark was “materially short” of what was required to protect the industry from continued losses.
The company said 213,322 tonnes of sugar from outside the Southern African Customs Union entered South Africa during the 2024/25 season, resulting in estimated revenue losses of about R1 billion for growers and R500 million for millers.
More details: https://www.chinimandi.com/south-africa-raises-sugar-import-benchmark-to-785-industry-seeks-stronger-protection/