KZN sugar industry on verge of collapse

Plans to diversify production to include aviation fuel and plastics

- THAMI MAGUBANE

THE sugar industry in KwaZulu-Natal is facing a serious crisis, with the provincial government warning that the sector is teetering on the verge of collapse.

The alarm bells were sounded by the Department of Economic Development, Tourism and Environmental Affairs (Edtea) during a briefing before the Edtea Portfolio Committee about the serious challenges the industry faces.

The industry has been battling for several years due to imports and the sugar tax.

Head of Department Nhlakanipho Nkontwana said, "The challenges that we have in the province indicate that the sugar industry is on the verge of collapse. We had a discussion with the industry not long ago. Most areas where there was sugar cane have been taken over by the property industry. If you go towards the north, that is where they are building houses, and they buy that piece of land from Tongaat.

"I am happy to indicate that they (industry) have a plan to diversify to also produce oil and fuel. This is part of what we have been working on together with the Department of Trade and Industry to support, but it is important for us to report that it is declining."

Stakeholders in the industry have confirmed that the sugar industry is in crisis, with thousands of small farmers going out of business and thousands of jobs lost.