Sugar industry in dire straights
South African Sugar Association has submitted an application to the International Trade Administration Commission to review and increase the import duty on sugar
THE South African sugar industry is in the same boat as the chicken industry was before receiving an increased duty on imports.
The import of sugar is ‘killing’ the local industry and the South African Sugar Association (SASA) has submitted an application to the International Trade Administration Commission (ITAC) to review and increase the import duty on sugar.
This has come about as large volumes of imported sugar, largely from Brazil and Thailand, have flooded the South African market at extremely low prices thereby displacing South African sugar onto the world market.
The result of this is that the South African sugar industry has lost vast amounts of revenue from its sales and will thus face tough economic times ahead, which could in turn give rise to extensive job losses.
The South African Cane Growers’ Association (CANEGROWERS) has urged all organisations and industries reliant on the sugar industry to support SASA in its bid to get the import tariff on sugar revised upwards.
The review of the import tariff will play a crucial role in the survival of the South African sugar industry.
The local sugar industry is the major source of economic activity in the rural areas of KZN and Mpumalanga, supporting local business operations now and in the future.
SASA says that if the tariff application is not supported and implemented then the mill and farming operations in these areas of operation will be at financial risk. If forced into closure, this could result in many job opportunities being put in jeopardy.
This will not only affect all sugar related industries, but could even spill over into other sectors of the economy with devastating effects.
Although tariff increases are never popular by the consumers, it is imperative to keep the local industry viable.
Thousands of jobs are at risk if the import duties are not increased, to prevent further dumping of sugar in the country.
Those wishing to support the application are asked to send any supportive comments to the following address before Wednesday, 16 October – The Chief Commissioner, ITAC, Private Bag X753, Pretoria, 0001 or by emailing Mmasithela@itac.org.za or rtheart@itac.org.za
