SA Canegrowers has called for urgent, high-level government intervention to stabilise South Africa’s struggling sugar industry, warning that thousands of jobs and rural economies are at risk if immediate action is not taken.

In a statement released on Friday, the industry body, which represents about 27,000 small-scale and 1,100 large-scale sugarcane growers, confirmed it has formally written to President Cyril Ramaphosa and several Cabinet ministers requesting coordinated support to address what it describes as a growing crisis.

The call comes ahead of a provisional liquidation hearing involving sugar producer Tongaat Hulett scheduled for 27 February, which growers say could have far-reaching consequences for the entire sugar value chain.

SA Canegrowers said the sector is under severe strain due to multiple challenges, including uncertainty around Tongaat Hulett’s milling operations, rising sugar imports and the continued impact of the Health Promotion Levy.

According to the organisation, Tongaat Hulett’s mills are critical infrastructure, serving about 18,000 growers who have no viable alternative facilities to process their sugarcane.

The group warned that a collapse of the company’s operations could result in an estimated 40,000 direct job losses and widespread economic disruption in rural communities, particularly in KwaZulu-Natal and Mpumalanga.

SA Canegrowers chairperson Higgins Mdluli says the cost of stabilising and preserving these operations is materially lower than the long-term social, fiscal and industrial cost of rebuilding a collapsed value chain.

He added that the issue extends beyond a single company.

“For this reason, Tongaat Hulett’s operational continuity has become a matter of systemic economic stability. Urgent, coordinated government intervention is required to prevent a failure whose consequences would extend far beyond a single company.”

Among its proposals, SA Canegrowers has urged government departments to review sugar import pricing measures, ensure the continued operation of Tongaat Hulett’s mills, scrap the Health Promotion Levy, and recommit to the Sugarcane Value Chain Master Plan 2030.