SA Canegrowers has warned that the possible liquidation of Tongaat Hulett could have devastating consequences
SA Canegrowers has warned that the possible liquidation of Tongaat Hulett could have devastating consequences for KwaZulu-Natal's rural economy, with thousands of jobs and millions of tonnes of sugarcane production at risk.
The industry body issued the warning ahead of a June 17 hearing in the KwaZulu-Natal High Court, where arguments will be heard in a liquidation application against the embattled sugar producer.
The body also said that an unfunded liquidation could bring economic activity linked to Tongaat Hulett's operations to a halt, leaving many sugarcane growers without a buyer for their cane and putting further pressure on rural communities that depend on the industry.
"The government’s own industrial policy objectives underscore why intervention in the sugar industry, and particularly in the future of Tongaat Hulett, is both necessary and urgent", the body said.
