Cape Town - The sugar industry is set to lose R723 million in 2023 due to load shedding, affecting at least 10 000 employees.
This was according to data compiled by the SA Canegrowers, which is appealing to the government for solutions.
“Load shedding affects 1 135 irrigated growers who employ more than 10 000 workers. An estimated 34% of South Africa’s sugar cane is produced in irrigated areas including Komatipoort and Malelane in Mpumalanga, and Pongola in KwaZulu-Natal.
“Growers are expected to incur more than R189 million in additional energy costs in 2023 on account of the disruption to irrigation schedules.
“Most irrigated growers in KwaZulu-Natal and Mpumalanga operate on a Ruraflex system which allows them to pay a lower tariff for operating during low demand times. But the converse also applies – growers pay a significantly higher rate for pumping during peak demand times. As a result of load shedding, growers have been forced to irrigate whenever electricity is available, regardless of demand,” SA Canegrowers said.
“With milling giant Tongaat Hulett in business rescue, and the destructive Health Promotion Levy already hampering the industry, these losses are potentially catastrophic for growers and the industry’s workers.
“SA Canegrowers is therefore appealing to the government to put short-term measures in place to mitigate the impact of load shedding on growers while long-term solutions are considered,” it said.
Chairperson at SA Canegrowers, Andrew Russel, said they were gearing up for Finance Minister Enoch Godongwana’s Budget Speech next month.
“Growers already face significant headwinds. The milling giant Tongaat Hulett was placed under business rescue in October 2022 and remains in that process. Meanwhile, the industry faces an increase to the destructive Health Promotion Levy (the sugar tax) when Minister Godongwana delivers his Budget Speech next month,” it said.
Cape Times