South Africa Sugar Industry Split Over Import Tariff Reference Price
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South Africa’s sugar sector is divided over revisions to the Dollar-Based Reference Price (DBRP)—currently $680/ton—which triggers R1,093.60 ($64.2) import duties when London No. 5 futures average below $660/ton. The mechanism shields SACU producers from non-customs union imports, calculated as six-year white sugar average plus 40% for local costs/subsidies.
SASA submitted to ITAC requesting a hike to $905/ton, citing record imports causing 733 million rand losses in 2025 alone by displacing domestic production. The association argues the current level fails market realities amid surging low-cost shipments.
BEVSA counters for a DBRP cut to $552-650/ton, claiming tariffs inflate costs for beverage producers, bottlers, and consumers in a cyclical global market. SASA warns lowering protection undermines the value chain long-term.
ITAC collects stakeholder input after past hikes ($358/t 2009 → $680/t now) amid reversing trends: raw sugar -6.4% 2024, -17-22% 2025; white futures hit 5-year lows February. The decision impacts the Sugar Value Chain Master Plan to 2030, balancing tariffs/jobs/diversification into ethanol.
