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

Last week the SA Sugar Association and leaders from its member organisations met with Patel and agriculture, land reform and rural development minister Thoko Didiza to discuss the development of a master plan for the future sustainability of the sugar sector.

The potential path back to growth, according to proposals by the industry, include optimisation of the local sugar market and diversification into ethanol. A biofuels programme would lead to a more sustainable industry and reduce the increasing exposure to the loss-making sugar export market. In 2018, the International Trade Administration Commission — the organisation tasked with customs tariff investigations, trade remedies, and import and export control — agreed to raise the dollar-based reference price , which is an import tariff levied on products that come into SA, from $566 to $680.

 

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