South Africa raises the sugar import reference price to $785 and increases tariff protection to counter low-priced competition from Brazil
智通财经2026/08/28 12:01- On Friday, South Africa's trade regulatory body approved an increase in the reference price for sugar imports from approximately $680 per ton to about $785 per ton. This move aims to enhance tariff protection for domestic producers to address the surge in low-priced shipments, particularly from Brazil, which has intensified competitive pressure.
- The regulator stated that the higher reference price will help the domestic sugar industry recover costs, stabilize price fluctuations, and support employment and investment, while striving to keep the impact on downstream users within an acceptable range. The country's sugar sector continues to face multiple pressures, including falling international sugar prices, rising import penetration, shrinking production, and deteriorating profitability.
- The South African Sugar Association had previously sought to raise the reference price to around $905 and welcomed the recent increase, but believes it is still insufficient to shield local producers from the impact of subsidized imports. The association noted it lost about 1.6 billion rand (approximately $100 million) in the 2025-26 fiscal year due to the import crisis.
- The regulatory body also rejected the upward and downward adjustment proposals submitted by the Sugar Association and the Beverage Industry Association respectively, stating that a compromise level is the optimal balance to protect domestic sugar production while limiting the impact on downstream industries and consumers. The new pricing structure will help sustain the industry's viability and encourage investment.
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