Johannesburg – Embattled sugarcane farmers have received a shot in the arm to the tune of R400-million as the government unfolds its sugar value chain masterplan.
The master plan is structured in a phased approach with clear targets and implementation plans. Phase one focuses on immediate actions and commitments focused on dealing with the short-term crisis; stabilising the industry and creating a window of two to three years during which the industry will undergo restructuring to set the foundations for the future.
Deputy Minister of Trade, Industry and Competition Nomalungelo Gina said R400-million has already been spent as part of the R1-billion sugar value chain masterplan that was signed last year to remedy inequalities experienced by black sugarcane farmers and to breathe life into the sugar industry that had been ailing for a number of years.
“In this phase one of the masterplan, industrial users and retailers of sugar have committed to minimum levels of South African- grown and produced sugar equal to no less than 80% of need during the first year, and increasing to 95% by the third year,” said Gina.
“To support this undertaking, sugar producers have equally committed to price restraint during this period. Over the three-year phase-one period, the sugar industry will commence with a stabilisation and restructuring plan that will include, among other things, development of diversified revenue sources for the industry, smallscale grower retention, support and transformation,” she said.
The cane-growing sector comprises 21 926 registered sugarcane growers farming in Kwa- Zulu-Natal and Mpumalanga.
Sugar is manufactured by six milling companies with 14 sugar mills operating in these cane-growing regions.
The economic impact of the industry has proven over the decades to be so significant that entire towns, for example, Tongaat in KwaZulu-Natal and Malelane in Mpumalanga, have been established based on the business of growing sugarcane and supplying sugar.
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