Illovo Sugar South Africa has called for the revised Dollar-Based Reference Price (DBRP) for imported sugar to be gazetted and implemented, saying continued delays are adding pressure to an industry facing rising imports and production costs.
The South African Sugar Association (SASA) applied to the International Trade Administration Commission of South Africa (ITAC) in October 2024 to increase the DBRP from $680/tonne to $905/tonne. Illovo says the review has been completed, but the revised price has not yet been gazetted or implemented.
Imports put pressure on industry
According to Illovo, 213,322 tonnes of sugar from outside the Southern African Customs Union (SACU) were imported into South Africa during the 2024/25 season.
The company says these imports reduced revenue across growers by approximately R1bn and across millers by approximately R500m.
The company said the continued delay in implementing the revised DBRP leaves the industry exposed to what it describes as unfairly priced imports, while production costs continue to increase.
The company said the sugar industry supports approximately 65,000 direct and 270,000 indirect jobs across the value chain, including growers, millers, transporters, contractors, security providers and small businesses operating in cane-growing regions.
Industry calls for action
Illovo is calling on the government to urgently gazette and implement the revised DBRP, and to consider interim safeguard measures available through ITAC mechanisms.
It is also calling for future reviews and implementation processes to be completed within reasonable timelines and for a more responsive tariff framework that can respond more quickly to changes in import volumes and market conditions.
"The sugar industry has engaged constructively and in good faith throughout the review process. What is now required is urgent action to implement the outcome of that process," said Illovo Sugar (South Africa) Managing Director, Ricky Govender. “Every day of delay further weakens an industry that supports hundreds of thousands of livelihoods and contributes significantly to rural economic activity.”
DBRP review
The DBRP is used in South Africa's sugar import tariff mechanism. SASA's application sought to raise the reference price from $680/tonne to $905/tonne.
Illovo said the review process took two years to complete and that the industry is now waiting for the outcome to be formally gazetted and implemented.
The company said it remains committed to working with government, SASA and other industry stakeholders on the future of the local sugar industry.
