The Congress of South African Trade Unions (COSATU) urges swift action by government, industry, labour and consumers to protect local jobs and value chains in the sugar industry.

The Federation welcomes the Department of Trade, Industry and Competition (DTIC) and the International Trade Administration Commission (ITAC)’s gazetting tariff relief for the sugar sector through raising the Dollar-Based Reference Price from US $680 to US $785 per tonne and the import duty from R4.83 to R6.97 per kilogram.  This is a critical intervention by the African National Congress led government to save the local sugar industry, value chains and jobs.  We appreciate that the raised reference price seeks to protect jobs, businesses and value chains in the sugar as well as the food and beverages industries in addition to cushioning consumers from high food prices.

The sugar industry is in crisis. Cheap imports that are often heavily subsidised are displacing local sugar on local shelves. Official data shows that:

• Duty-paid imports for January to June have surged from 1,619 tonnes in 2022 to 124,594 tonnes in 2026.
• Full year imports reached almost 200,000 tonnes in 2025.
• Industry estimates it lost R1.6 billion to cheap imports in the 2025/ 26 season alone and R560 million in the first 5 months of this season.
• Growers report losing over R7,500 per tonne to cheap imports.
• Local sales have fallen 35% over the last three seasons.

We simply cannot afford to lose this industry in an economy that has barely grown above 1% over the past decade and is battling a dangerously high unemployment rate of 43.8%.   The sugar industry employs over 70 000 workers directly and more indirectly.  It provides livelihoods for more than 11 000 emerging and small-scale farmers and is an economic anchor for KwaZulu-Natal and Mpumalanga.

The tariff relief will play an important role, but on its own it cannot solve the entire crisis. COSATU has long called for the full implementation of the Sugar Master Plan. The industry needs further urgent support, including:

• Reduced electricity tariffs for milling and farming.
• More efficient rail and logistics to get cane to mills, retailers and ports.
• A ramped-up Buy Local campaign for South African sugar.
• A sustained crackdown on illicit and under-invoiced imports by the South African Revenue Service (SARS).
• Dedicated support for emerging farmers whose production has dropped by almost 25% in 20 years. 

We need to protect jobs not only in primary agriculture and milling, but across the broader value chain including food and beverages. Solidarity between government, business and labour is key.  COSATU urges Minister Parks Tau and DTIC to ensure the Sugar Master Plan is fully implemented and that this tariff adjustment is the start of a comprehensive rescue and investment package.

Issued by COSATU