Grain SA in a statement on Friday strongly rejected the International Trade Administration Commission of South Africa (ITAC) Government Gazette recommendation this week that Dollar-Based Reference Price (“DBRP”) on wheat remain unchanged at $279 (R4558)/ton.
Grain SA has strongly rejected a recommendation by the International Trade Administration Commission of South Africa (ITAC) to keep the Dollar-Based Reference Price (DBRP) for wheat unchanged at $279 (about R4,558) per ton, warning that the decision threatens the long-term sustainability of the country's wheat industry.
The recommendation, published in the Government Gazette last week, follows a 2024 application by Grain SA and the South African Cereals and Oilseeds Trade Association (Sacota) seeking an increase in the wheat reference price from $279 to $289 per ton.
The organisations argued that the adjustment was necessary to provide greater protection for local wheat producers facing mounting production costs and challenging market conditions.
In its findings, ITAC noted that South Africa’s total wheat supply had increased steadily over the past decade, averaging about 4.09 million tons and growing by 11.15% between the 2014/15 and 2023/24 seasons.
