Cut VAT on sorghum to secure South Africa's food future, says agri economist

While staple foods like maize meal are zero-rated, sorghum products are subject to 15% VAT, making them less competitive to produce and more expensive for consumers. Octavia Avesca Spandiel reports.

- Octavia Avesca Spandiel

South Africa’s sorghum industry is at risk of a continued decline, with production levels having dropped by over 80% since the early 1990s. Urgent intervention, specifically the removal of VAT on sorghum, is required to maintain production of sorghum, which remains a staple food and a vital crop for food security, especially in rural communities.

This was according to Ricardo Smith, an economist at the National Agricultural Marketing Council. Speaking to Farmer’s Weekly, he said that sorghum was more than just a crop in South Africa; it was a staple food for many rural communities and held significant cultural value. “But beyond tradition, sorghum’s resilience against drought and harsh weather conditions makes it crucial for food security at a time when climate change is threatening agricultural production. It’s a crop that we simply cannot afford to lose.”

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