Local agribusiness Illovo Sugar South Africa says it is increasingly concerned by the continued delay in the publication and implementation of the revised Dollar-Based Reference Price (DBRP) for imported sugar, despite the review process having been concluded by the International Trade Administration Commission of South Africa (Itac).

The prolonged delay is creating further uncertainty for an industry already under severe economic pressure caused by increased volume of imports, escalating input costs and sustained inflationary pressures.

The South African Sugar Association (Sasa) submitted an application to Itac in October 2024 requesting an increase in the DBRP from $680/t to $905/t. The review process, albeit taking two years, has since been completed, yet the industry continues to await the gazetting and implementation of the revised reference price.

Every month of delay has real consequences for the sustainability of the South African sugar industry, Illovo states.

During the review period, import volumes continued to rise, placing further strain on local growers and millers. In the 2024/25 season, 213 322 t of sugar from outside the Southern African Customs Union were imported into South Africa, reducing revenue across growers by approximately R1-billion and across millers by approximately R500-million.

The delay in implementing the revised DBRP means that the industry remains exposed to unfairly priced imports at a time when production costs continue to rise.

"This is undermining the competitiveness of local sugar producers and eroding the financial viability of an industry that plays a critical role in supporting rural economies and livelihoods," Illovo emphasises.

The South African sugar industry supports about 65 000 direct and 270 000 indirect jobs across the value chain, including growers, millers, transporters, contractors, security providers and many small businesses operating in cane-growing regions. Continued delays in implementing the revised protection mechanism place these jobs, and the economic wellbeing of rural communities, at increasing risk.

While the review itself is an important step, relief delayed is relief denied. The industry urgently requires certainty and timely implementation of the revised DBRP to help offset the impact of imports and restore confidence in the sustainability of local sugar production, Illovo laments.

Illovo Sugar South Africa therefore calls on government to urgently gazette and implement the revised DBRP at a level that sustains the industry without further delay; consider interim safeguard measures, including those available through Itac mechanisms, to protect the industry; ensure that future reviews and implementation processes are concluded within reasonable timelines to prevent prolonged periods of uncertainty; and develop a more responsive tariff framework that is aligned with market conditions and capable of responding with more agility to import surges.

"The sugar industry has engaged constructively and in good faith throughout the review process. What is now required is urgent action to implement the outcome of that process. Every day of delay further weakens an industry that supports hundreds of thousands of livelihoods and contributes significantly to rural economic activity," says Illovo MD Ricky Govender.

Illovo remains committed to working with government, Sasa and other industry stakeholders to secure a sustainable future for the local sugar industry, protect jobs and support the long-term resilience of South Africa's cane-growing communities.