Mzinti:The government is considering implementing stricter import controls and quotas on deep-sea sugar imports as part of efforts to stabilize the domestic sugar industry. This initiative was announced by the Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, during his address to small-scale sugarcane growers in Mzinti, Mpumalanga.

According to South African Government News Agency, Deputy Minister Godlimpi revealed that the government is also pursuing legislative amendments aimed at supporting the diversification into the bioethanol value chain. These efforts include adjusting fuel blend requirements in collaboration with the Department of Minerals and Petroleum.

Godlimpi highlighted the importance of ensuring adequate sugarcane supply to meet potential bioethanol quotas without affecting the current supply. He mentioned that an agreement with the Department of Minerals and Petroleum on blend requirements could open significant business opportunities for producers.

Despite these initiatives, Godlimpi cautioned that legislative changes could increase demand for sugar in fuel blends beyond what local production can currently supply. He emphasized the importance of expanding smallholder farmers into medium-sized producers using models like RCL’s community holding approach to meet future demand. Additionally, he noted that the milling capacity in areas such as Umfolozi and Zululand appears to be sufficient, but consistent sugarcane feedstock remains a priority.

On the issue of pricing, Godlimpi pointed out that existing boundary rates on dollar-based reference prices limit the potential for further increases. He suggested that to enhance competitiveness without relying on price hikes, the sector must focus on optimizing energy costs and water resourcefulness.