South Africa may clamp down on imported sugar to give local growers more room to recover. Deputy Trade Minister Zuko Godlimpi raised the idea of tighter limits and quotas on deep-sea imports while meeting small cane farmers in Mzinti, Mpumalanga.
The pressure from cheap imports has hit local producers hard. Foreign sugar has taken a larger share of the market, cutting sales for South African mills and reducing what growers earn. Godlimpi says the state wants to help the sector get back on stable ground.
His visit formed part of the Growers Imbizo, which took him through farms and mills near Malalane and Nkomazi. Small producers raised concerns about loans, rising costs, and whether their farms could stay in business as market pressure grows.
And there is another plan in play. Officials want sugarcane to serve a larger role in making bioethanol, a fuel that can be mixed with gasoline. New laws and changes to fuel blend rules could give cane farmers a fresh way to earn cash.
But there is a catch. The Department of Minerals and Petroleum must agree on how much bioethanol goes into fuel. If the rules push demand past what farms can grow, mills and fuel makers could end up short of cane.
Godlimpi sees room for more output from small farms, with medium-size growers playing a larger role. He pointed to RCL's community holding model as one way to help them expand. Mills in Umfolozi and Zululand seem able to handle more work, but a steady crop supply is still a concern.
Price hikes alone will not fix the sector's problems. Godlimpi says trade rules tied to dollar-based sugar prices limit how far local prices can rise. His preferred path is to help farms and mills use less power, cut water waste, and bring down daily costs.
The import figures explain why growers want action. Duty-paid sugar shipments went from low levels in 2022 to more than 100,000 tonnes during the first half of 2026. That shift left local sellers with fewer buyers and less cash coming in.
Trade officials have already raised the sugar price used to set import duties, moving it from US$680 to US$785 per tonne. The duty then rose from 483.72 cents to 697.92 cents per kilogram. Industry groups backed the move, though they say more help is needed.
The Sugarcane Value Chain Master Plan also plays a part. Its second phase aims to move the sector past short-term relief and toward a more stable future, with new products and markets at the center of the effort.
For small growers, access to cash is a major hurdle. Godlimpi wants lenders to offer better ways for farmers to pool land, seek credit, and get insurance. The aim is to help them grow their businesses without leaving them stuck with costs they cannot meet.
Jobs are part of the concern as well. Farms, mills, and firms that depend on sugar all have workers whose income relies on a healthy local market. Any shift in trade rules would need to help protect those roles while giving producers a fair chance to compete.
The proposed import caps are still under review. The government has yet to settle the details, while talks with growers and millers continue on how to pair trade relief with lower costs and new fuel markets.
The pressure from cheap imports has hit local producers hard. Foreign sugar has taken a larger share of the market, cutting sales for South African mills and reducing what growers earn. Godlimpi says the state wants to help the sector get back on stable ground.
His visit formed part of the Growers Imbizo, which took him through farms and mills near Malalane and Nkomazi. Small producers raised concerns about loans, rising costs, and whether their farms could stay in business as market pressure grows.
And there is another plan in play. Officials want sugarcane to serve a larger role in making bioethanol, a fuel that can be mixed with gasoline. New laws and changes to fuel blend rules could give cane farmers a fresh way to earn cash.
But there is a catch. The Department of Minerals and Petroleum must agree on how much bioethanol goes into fuel. If the rules push demand past what farms can grow, mills and fuel makers could end up short of cane.
Godlimpi sees room for more output from small farms, with medium-size growers playing a larger role. He pointed to RCL's community holding model as one way to help them expand. Mills in Umfolozi and Zululand seem able to handle more work, but a steady crop supply is still a concern.
Price hikes alone will not fix the sector's problems. Godlimpi says trade rules tied to dollar-based sugar prices limit how far local prices can rise. His preferred path is to help farms and mills use less power, cut water waste, and bring down daily costs.
The import figures explain why growers want action. Duty-paid sugar shipments went from low levels in 2022 to more than 100,000 tonnes during the first half of 2026. That shift left local sellers with fewer buyers and less cash coming in.
Trade officials have already raised the sugar price used to set import duties, moving it from US$680 to US$785 per tonne. The duty then rose from 483.72 cents to 697.92 cents per kilogram. Industry groups backed the move, though they say more help is needed.
The Sugarcane Value Chain Master Plan also plays a part. Its second phase aims to move the sector past short-term relief and toward a more stable future, with new products and markets at the center of the effort.
For small growers, access to cash is a major hurdle. Godlimpi wants lenders to offer better ways for farmers to pool land, seek credit, and get insurance. The aim is to help them grow their businesses without leaving them stuck with costs they cannot meet.
Jobs are part of the concern as well. Farms, mills, and firms that depend on sugar all have workers whose income relies on a healthy local market. Any shift in trade rules would need to help protect those roles while giving producers a fair chance to compete.
The proposed import caps are still under review. The government has yet to settle the details, while talks with growers and millers continue on how to pair trade relief with lower costs and new fuel markets.
