The government is unlikely to back further tariff hikes in the sugar industry, saying the protectionist strategy needs to be phased out in favour of one based on competitiveness.
SA sugar producers have previously warned that the sector was on the verge of collapse, and suggested that tariffs needed to be increased. Local sugar industry players have also called on the government to tighten restrictions to prohibit sugar entering SA from neighbouring countries that are not subject to any duties.
Local sugar producers had requested that the tariff be increased to $856 per ton. The DBRP is up for review in August 2021.
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