Sugar industry under siege
'Sugar tax will have a severely detrimental impact on rural economies'
THE proposed government sugar tax on the back of one of the worst droughts in nearly a century is likely to end in a tsunami of industry job losses and business closures.
That is the bleak picture painted by SA Cane Growers Association Chairman Tim Murray in response to questions posed by the Zululand Observer.
Thousands of Zululand cane farmers are already under severe pressure as the impact of the drought has cost the region’s industry about R1.4-billion in lost revenue last year alone.
Further job losses will sow devastation in northern KZN, already faced with a disturbingly high youth unemployment rate of 40%.
According to Felixton Crop Growers Association figures, cane farmers, the irrigation sector and the Felixton Mill alone are responsible for 14 000 direct jobs and more than 84 000 dependents
With hopes that government would reconsider the intended 20% levy on sugar sweetened drinks, the Cane Growers Association requested they conduct an Independent Regulatory Impact Assessment.
Read the full story in the ZO Monday edition.
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