South Africa’s trade regulator has approved a higher reference price for sugar imports, raising it to $785 per metric ton from $680 to provide greater tariff protection for domestic producers.
The decision was announced on Friday by the International Trade Administration Commission of South Africa.
The increase comes as domestic sugar producers face growing pressure from cheaper sugar imports, particularly from Brazil.
The International Trade Administration Commission said the higher reference price would help local producers recover costs, reduce the impact of market volatility and support employment and investment.
The regulator said it also considered the potential impact of the increase on downstream industries that use sugar as a major input.
South Africa’s domestic sugar industry has continued to face falling international sugar prices and increasing import penetration.
The sector has also experienced weakening production volumes, lower capacity utilisation and deteriorating profitability.
The South African Sugar Association had requested that the Dollar-Based Reference Price be increased to $905 per metric ton.
While welcoming the regulator’s decision to raise the price, the association said the approved $785 per ton remained below the level required to adequately protect local producers from subsidised imports.
The industry body said the sugar sector lost 1.6 billion rand, equivalent to about $100 million, during the 2025/26 season because of the import crisis.
The trade regulator said it rejected the $905 per ton proposal submitted by the sugar association.
It also rejected a competing proposal from the Beverage Association of South Africa, which had called for a reduction in the reference price.
The commission said it opted for a middle ground that would provide protection for domestic sugar producers while limiting the effect on downstream industries and consumers.
According to the regulator, the new reference price is expected to support the long-term sustainability of South Africa’s domestic sugar industry.
It said the measure would help protect jobs, improve the industry’s ability to recover costs and encourage investment in local sugar production.
