South Africa raises sugar reference price, boosting tariff protection for local producers
South Africa’s trade regulator on Friday approved a higher reference price for sugar imports to $785 per metric ton from $680, increasing tariff protection for domestic producers facing a rise in cheaper shipments, particularly from Brazil.
The International Trade Administration Commission of South Africa (ITAC) said the higher reference price would help domestic sugar producers recover costs, stabilise volatility and support employment and investment, while seeking to limit the effect on downstream users.
ITAC said the domestic sugar industry continued to face falling international sugar prices, rising import penetration, weakening production volumes, lower capacity utilisation and deteriorating profitability.
The South African Sugar Association, which had sought a rise in the Dollar-Based Reference Price to $905 per ton, welcomed the increase but said it fell short of the level needed to protect local producers from subsidised imports.
The industry body said it lost 1.6 billion rand ($100 million) during the 2025/26 season because of the import crisis.
ITAC said it rejected both the sugar association’s proposal and a competing submission from the Beverage Association of South Africa, which had called for a reduction in the reference price, concluding that a middle ground was needed to protect local sugar production while limiting the impact on downstream industries and consumers.
The regulator said the new level would help support the sustainability of the domestic sugar industry, protect jobs and encourage investment.
($1 = 15.9909 rand)