Trade & industry minister Rob Davies has come to the aid of the embattled sugar industry, approving an increase in import duties on sugar. But although the minister approved the increase of the duty from $566/ton to $680/ton, it is lower than the $856/ton the South African Sugar Association (Sasa) had requested from the International Trade Administration Commission (Itac) in February. While benefiting sugar producers, the hike in the import duty will hit hard retailers and industrial users such as soft-drink manufacturers. Sasa chair Suresh Naidoo said on Tuesday that the increase granted by Itac would provide some level of protection for the industry but was not sufficient to cover the cost of production. He said Sasa leadership was still analysing the Itac report and would respond comprehensively later.
Sasa requested Itac to investigate an increase in import duties in the light of a flood of sugar imports mainly from Brazil, the United Arab Emirates and Swaziland. The assoc...
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