The Department of Trade, Industry and Competition (DTIC) has declined to disclose which South African companies are sourcing sugar from Brazil, Thailand and India as pressure mounts on the country’s domestic sugar industry.
The government is still working on its response to the sharp increase in sugar imports, with the DTIC saying proposed measures have not yet been finalised.
Of three JSE-listed companies approached by the Mail & Guardian about whether they sourced sugar from international suppliers, Shoprite said all the sugar sold through its South African supermarket brands comes from local producers.
“Sugar sold in our Shoprite, Checkers, Checkers Hyper and Usave supermarkets across South Africa is obtained locally,” Shoprite said. “We also support the South African sugar industry’s master plan.”
The developments come as the local sugar industry estimates that it has lost about R1.5 billion because of subsidised sugar imports.
South African Sugar Imports Nearly Double
South African Revenue Service (SARS) figures show that 94,984 tonnes of sugar were imported between January and May 2026.
That compares with 55,213 tonnes imported during the same period in 2025, representing a substantial increase in imports.
The figures have intensified calls from organised labour and the sugar industry for urgent government intervention.
The Department of Agriculture previously indicated that the DTIC was responsible for addressing the issue.
Kaamil Alli, spokesperson for DTIC Minister Parks Tau, said the government’s intervention was still being developed.
This is despite the DTIC stating that it was “prioritising the movement of the DBRP (Dollar-Based Reference Price) through the system”.
The DBRP is used as a benchmark when determining tariffs on imported sugar when international prices fall below a specified level. The mechanism is intended to provide protection for South African producers against low-priced imports.
The local sugar industry has argued that delays in updating the DBRP have added to the pressure facing domestic producers.
“While the Itac (International Trade Administration Commission) investigation has concluded, there are still a few steps to be followed before the recommendations can be implemented,” Alli said.
“The department is in consultation with national treasury on the matter (DBRP) as it requires some concurrence before it is gazetted.
“The details will be shared in the gazette and we are not able to share this publicly at this stage.”
DTIC Defends Government Response To Sugar Crisis
Alli said the DTIC had been working with the sugar industry through the sector’s master plan to address its challenges.
“This is evidenced by the intervention by the minister in the Tongaat Hulett matter, which saw the company being taken out of business rescue — now on a path to stability through the Industrial Development Corporation.”
“This demonstrates the commitment of the minister and the DTIC, ensuring that rural communities benefit from government intervention,” Alli added.
He said the executive oversight committee responsible for the sugar master plan was continuing its work towards measures designed to support the industry.
“It is the platform where all stakeholders are offered the opportunity to make proposals regarding the sustainability of the sector.”
Labour Demands Action On Sugar Imports
Labour organisations have called for urgent measures to protect South Africa’s sugar producers and jobs.
Association of Mineworkers and Construction Union president Joseph Mathunjwa called for immediate intervention at South African ports.
“Transnet is a state-owned entity and should not be used to facilitate the destruction of a strategic South African industry. It makes no sense for a state-owned entity to offload products that displace South African production and destroy local jobs,” Mathunjwa said.
He also called on the government to reveal which companies were importing sugar from Brazil, Thailand and India.
“Sars, Itac, the DTIC and the department of agriculture must disclose who is importing the sugar, the quantities involved, the countries of origin and the companies purchasing it locally,” Mathunjwa said.
“The public has a right to know who is profiting while South African jobs and productive capacity are being destroyed.”
Mathunjwa argued that trade agreements should support South Africa’s productive economy.
“South Africa must not remain bound by arrangements which permit subsidised foreign products to destroy industries built over generations. Parliament should be debating policies which will industrialise and advance South Africa, protect local production and create employment.”
He also said South African producers were struggling to compete with countries that subsidise their sugar industries and use integrated ethanol programmes to dispose of surplus sugar internationally at low prices.
“If imported sugar from Brazil, India and Thailand is allowed to displace domestic production, South Africa is exporting its jobs and importing dependency.”
Mathunjwa said trade agreements and government policies needed to address what he described as unfair competition.
“South Africa must embargo the importation of products, which it is capable of producing for itself,” he said.
Cosatu Warns Of Threat To Rural Jobs
Cosatu spokesperson Matthew Parks said the sugar industry was under severe pressure, alleging that large volumes of illicit sugar were entering South Africa through ports of entry.
Parks said the industry supported employment across farming, milling, distribution, food and beverage production.
“We have been quite worried by a massive increase in the volume of illicit imports entering the market, largely from Brazil. It is critical that Sars be given the full support to crack down on illicit imports. This includes dealing with importers who then fraudulently repackage these imports as locally-produced sugar.”
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He said thousands of small, emerging and commercial farmers in KwaZulu-Natal and Mpumalanga depended on a stable sugar industry.
Parks said Cosatu supported ITAC’s investigations into the costs facing local producers seeking greater protection, as well as efforts by the beverage and food sectors to reduce production costs.
He said protecting jobs required a balance between measures to support local producers and reducing costs across the industry.
“With 43.8% unemployment we simply cannot afford to see any jobs lost. The loss of this industry would hit KwaZulu-Natal and Mpumalanga especially hard.”
Parks said potential increases in import duties should be considered alongside measures addressing electricity, logistics, diesel and irrigation costs.
“A buy local campaign to support local producers needs to be revived as a critical measure to sustain local industries.”
Sugar Growers Demand Urgent Tariff Decision
SA Canegrowers chief executive Dr Thomas Funke has also called for an urgent and sustainable policy response.
“The government already has a tariff mechanism available to address distorted international sugar prices. Our call is for the DTIC minister and Itac to finalise the adjustment urgently so that the mechanism reflects current market conditions.”
“The longer the delay continues, the more local sales are displaced and the greater the pressure becomes on growers, mills and workers,” Funke said.
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He said the industry had applied for an adjustment more than 18 months ago, while ITAC was still considering whether the tariff remained at an appropriate level.
“The result is that locally produced sugar is being displaced from our own market, with serious consequences for growers, mills, workers and rural communities,” Funke said.
