South Africa’s higher sugar import benchmark offers relief to local producers, but growers and Illovo warn it may not be enough to curb rising imports.
South Africa’s decision to increase the reference price used to protect local sugar producers from cheaper imports has been welcomed as important relief for the industry, but growers and one of the country’s major sugar producers warn the new level may still be too low to stop rising imports from displacing locally produced sugar.
The Dollar-Based Reference Price (DBRP) has been increased from US$680 to US$785 a tonne following a review of competing applications from sugar producers and the beverage industry. The South African Sugar Association (SASA) had applied in October 2024 for the benchmark to be raised to US$905.
The International Trade Administration Commission (ITAC) considered SASA’s application alongside a proposal from the Beverage Association of South Africa to reduce the benchmark to between US$552 and US$650.
ITAC found that neither proposal adequately balanced support for local producers with downstream competitiveness, consumer interests, and South Africa’s World Trade Organization commitments.
