South Africa’s sugar industry has renewed calls for the removal of the Health Promotion Levy, arguing that rising volumes of imported sugar are compounding financial pressure on local producers and threatening rural employment. Grower body SA Canegrowers says the combination of the levy and cheap imports is undermining the long-term viability of domestic sugar production.
The organisation, which represents both small-scale and commercial farmers, warns that subsidised sugar from overseas is increasingly replacing locally produced sugar on retail shelves and in food manufacturing supply chains. According to SA Canegrowers, the sector supports more than one million livelihoods, largely concentrated in KwaZulu-Natal and Mpumalanga, making it a critical pillar of rural economies.
Industry data shows a sharp rise in imports over the past year. Analysis of customs figures indicates that more than 153,000 tonnes of sugar entered South Africa between January and September 2025, a level more than seven times higher than imports recorded during the same period in 2020. This surge has coincided with weaker local demand, placing downward pressure on prices received by growers.
The global sugar market has been characterised by oversupply, with major exporting countries able to sell excess production at low prices due to subsidies and favourable currency movements. As reported by the South African Revenue Service, these conditions have distorted trade flows and intensified competition for domestic producers in importing countries such as South Africa.
SA Canegrowers argues that the sugar tax, introduced in 2018 to curb sugar consumption, has further reduced local demand without delivering clear public health gains. The group maintains that the levy has contributed to job losses and delayed investment across the value chain, particularly in rural areas where alternative employment opportunities are limited.
The industry is urging National Treasury to reassess the policy ahead of the next budget, calling for decisions to be informed by updated health and consumption data alongside economic impact assessments. Growers also want stronger enforcement of existing trade remedies to prevent imported sugar from displacing local production.
According to National Treasury, South Africa produces enough sugar to meet domestic needs, suggesting that prioritising local supply could protect jobs and strengthen food security. Canegrowers argues that without policy intervention, continued import growth risks long-term damage to a strategic agricultural sector and the communities that depend on it.