The dtic is weighing tighter limits and quotas on deep-sea sugar imports, Deputy Minister Zuko Godlimpi told sugarcane growers at Mzinti, Mpumalanga, on Saturday, according to SAnews.

The agency reported the remarks on 2 November. Its report does not say what a quota would be set at or when one could take effect.

He said the dtic is also pursuing legislative amendments to help the industry diversify into bioethanol, including adjusting fuel blend requirements together with the Department of Minerals and Petroleum. “A primary concern remains guaranteeing sufficient feedstock (sugarcane) to meet potential bioethanol quotas without compromising existing supply,” Godlimpi said.

He warned that changes to the law could push demand for sugar in fuel blends beyond what local farmers can supply. Milling capacity in areas such as Umfolozi and Zululand appears sufficient, he said, but a reliable supply of cane remains the priority.

Duty already raised in August

Quotas would come on top of a higher duty. In a media release dated 28 August, the International Trade Administration Commission (ITAC) announced a rise in the dollar-based reference price for sugar from US$680 to US$785 a tonne. The South African Sugar Association had asked for US$905 a tonne, and the Beverage Association of South Africa for a cut to between US$552 and US$650.

Sugar dollar-based reference price, US$ a tonne
Beverage industry request (low end)Beverage industry request (low end): US$552US$552Beverage industry request (high end)Beverage industry request (high end): US$650US$650Previous pricePrevious price: US$680US$680New priceNew price: US$785US$785Sugar industry requestSugar industry request: US$905US$905
Beverage industry request (low end)Beverage industry request (low end): US$552US$552Beverage industry request (high end)Beverage industry request (high end): US$650US$650Previous pricePrevious price: US$680US$680New priceNew price: US$785US$785Sugar industry requestSugar industry request: US$905US$905

Source: ITAC media release, 28 August 2026. Chart: Rand Desk

ITAC set the initial duty at 697.92c a kilogram, equal to 97.76% ad valorem, based on the London No. 5 sugar price on 7 May 2026. It found that the local industry faced rising import penetration, with imports particularly from Brazil rising late in the review period, weaker production volumes and falling profits. It found that sugar-using industries, including soft-drink makers, also faced rising input costs.

In a SAnews report of 29 October, Godlimpi put the old and new duty at R4.83 and R6.97 a kilogram. ITAC’s own release gives the new duty only, as 697.92c.

The duty can move. ITAC said it would calculate a new one if the 20-day average London No. 5 sugar price varies by more than US$20 a tonne from the previous trigger level for 20 consecutive trading days. The rate may not exceed South Africa’s World Trade Organization bound rate of 105%.

Limits on prices

On pricing, Godlimpi said the existing boundary rates on dollar-based reference prices limit room for further increases. “To improve competitiveness without relying on price increases, the sector must optimise energy costs and water resourcefulness,” he said.

He also pointed to the smallholders at the centre of the Mpumalanga meeting. Growing small farmers into medium-sized producers is essential to meeting future demand, he said, citing the community holding model used by RCL.

Stakeholders adopted the Sugarcane Value Chain Master Plan to 2030 in April 2026. It lists ethanol for petrol, aviation fuel, plastics and power generation as new lines of business. SAnews put the number of cane farmers in KwaZulu-Natal and Mpumalanga at over 26,000.

The dtic gave no date for a decision on quotas. ITAC’s reasons are in its Report 781, and it will review the reference price three years after implementation, or in such other period as it decides.