Review of system for import tariffs on key foods is nearing completion
THE International Trade Administration Commission (Itac) aims to complete its review of the system for determining import tariffs on wheat, maize and sugar before year-end, chief commissioner Siyabulela Tsengiwe said on Friday.The current dollar-based domestic reference price and variable tariff formulae used for wheat, maize and sugar was introduced in 1999 to give price support to farmers exposed to the volatility of global market with the deregulation of the agricultural sector.It also cushions local producers against their subsidised international counterparts.READ THIS: Consumers will bear brunt of wheat tariff hikeA floor price — the domestic reference price — was used to cushion producers when global prices were at bottom. In this case, an import duty would be levied to bring the import price to the level of the floor price, at which local producers could be compete and be sustainable. As global prices fall, the tariff increases.At $110 a ton, the floor price of maize has no...
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