South Africa is increasing protection for its sugar industry as a surge in cheaper imports puts pressure on local growers, millers and jobs in rural communities.

The International Trade Administration Commission of South Africa, or ITAC, said Friday it had raised the dollar-based reference price for sugar imports to $785 a metric ton from $680.

The move will increase the tariff applied when international sugar prices fall below the reference level.

The decision comes after local producers warned that rising imports, particularly from Brazil, were taking market share from South African sugar.

ITAC said the industry is also dealing with higher production costs, weaker output, lower capacity use and declining profitability.

The higher reference price gives domestic producers more room to compete with imported sugar, while the government tries to avoid putting too much pressure on food and beverage companies that rely on sugar.

Sugar producers wanted a bigger increase

The South African Sugar Association had asked ITAC to raise the reference price to $905 a ton, saying stronger protection was needed to deal with subsidized imports.

The group said the industry lost 1.6 billion rand, about $100 million, during the 2025-26 season because of cheaper imports.

The association welcomed the new rate but said it did not go far enough. ITAC also rejected a request from the Beverage Association of South Africa to reduce the reference price to between $552 and $650 a ton, saying neither proposal offered the right balance between producers, businesses and consumers.

Imports put pressure on local sugar

The regulator said imports, particularly from Brazil, have gained ground as international sugar prices fell.

The domestic industry’s market share has declined, while production and profitability have weakened.

The new reference price is based on a review of global sugar prices, production costs, transport costs and other market factors.

ITAC said the measure should help producers recover costs, reduce price volatility and support jobs and investment without placing an excessive burden on downstream users.

ITAC seeks balance

ITAC said the sugar industry remains important to employment, rural economies and livelihoods. It will review the new reference price after three years, or sooner if market conditions require it.

ITAC is South Africa’s trade regulator responsible for administering tariffs and investigating trade measures.

Its sugar review brought together competing demands from growers, millers, beverage companies and consumers before settling on the $785-a-ton benchmark.

For South African sugar producers, the immediate focus will be whether the higher tariff can slow imports and improve local sales without pushing up costs for manufacturers and consumers.