Sugar industry turns to the government for help in plotting rescue plan

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Local producers have warned that the sector is near collapse and have suggested that tariffs need to be raised

An association that represents the interests of the local sugar industry has insisted that tariff protection is necessary to sustain the livelihoods of those dependent on the sector.

But earlier in September, department of trade and industry officials suggested in parliament that 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. Sasa chair Hans Hackmann said despite the obvious need for enhanced competitiveness and diversification of its product mix, sugar would remain a significant part of the future plan for the industry. For as long as the world market for sugar remained distorted, tariff protection would be necessary to sustain the livelihoods of those dependent on the industry, he said.

Also at the heart of the plan is a meaningful transformation of the industry that will see most of the cane being delivered to mills by black farmers, with increasing participation by them in the entire sugar and diversification value chain. Local sugar producers had requested that the tariff be increased to $856 a ton. The DBRP is up for review in August 2021.

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Illovu Sugar ,Tongaat Hullet ,Selati and USHUKELA are going to be laying off staff

🤑🤑🤑 bail out

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