Sugar Tax Could Devastate Sa's Sugarcane Industry, Warn Growers

Leading agricultural associations have united to voice their deep alarm over the potential for increased sugar tax rates or lowered thresholds in a warning for the future of South Africas sugarcane industry.

In a joint statement issued yesterday, SA Canegrowers and the South African Farmers Development Association SAFDA highlighted that such measures could lead to the collapse of the sector, jeopardising the livelihoods of 25 000 cane farmers and plunging countless families into destitution.

This warning follows years of turmoil faced by the industry since the introduction of the Health Promotion Levy HPL in April 2018, which has already prompted significant job losses and economic strain.

The associations cited an alarming multi-billion rand revenue loss, which has already led to the closure of two mills in KwaZulu-Natal. A study commissioned by the National Economic Development and Labour Council NEDLAC revealed a loss of more than 13 500 jobs within the sugar industry by 2019.

Concerns regarding the sugar tax were reiterated by SAFDA executive chairman Dr Siyabonga Madlala, and SA Canegrowers chairman Higgins Mdluli.