MINISTER PATEL VISITS SUGAR INDUSTRY

Cedric Mboyisa

Recently, Trade, Industry and Competition Minister Ebrahim Patel led his delegation, comprising his sectoral adviser, Harald Harvey, Acting Director-General, Malebo Mabitje-Thompson, and other senior dtic officials on a visit to the sugar industry to discuss issues related to the sustainability of the sector.

Above: Trade, Industry and Competition Minister Ebrahim Patel discussing, in the main, master plan issues with industry leaders from SASA, SACGA, SAFDA and SASMA. 

The industry delegation included leaders from the South African Sugar Association, the South African Cane Growers’ Association, the South African Farmers Development Association, the South African Sugar Millers’ Association and individual milling companies. The discussions centred around the all-important South African Sugarcane Master Plan to 2030, whose Phase 1 expired on 31 March 2023. The Independent Chairperson of SASA, Advocate Fay Mukaddam, led the industry delegation.

The advent and implementation of the master plan, which was signed in November 2020, helped to put the sugar industry on a right trajectory to recovery. Prior to the installation of the master plan, the industry faced existential crisis emanating from serious challenges which included sugar imports, insufficient tariff, sugar tax and rising input costs. Both sugarcane farmers and millers were adversely impacted by these challenges. As a result of the master plan, the industry has identified diversification opportunities, which include sustainable aviation fuel, bioethanol for fuel blending, food additives and bioplastics. Most projects are still at scoping, market analysis or pre-feasibility stages with Department of Science and Innovation and the Industrial Development Corporation providing some financial support for some of the scoping work.

While the industry is grateful for the two-year moratorium on the sugar tax in order to restructure and diversify, it is unlikely that identified product diversification opportunities would have reached the commercialisation stage at the expiry of the stipulated two-year period. Therefore, the industry’s plea to government is that the master plan must be given sufficient time to resolve critical issues pertaining to sugar tax and other related important matters. Minister Patel’s interaction with the industry is part of the ongoing engagement with government and all other relevant stakeholders regarding the trajectory and nature the master plan should assume going forward.