South African sugar industry in talks with government for ethanol production subsidy

October 7, 2021 |

In South Africa, Bloomberg reports the South African Sugar Association is discussing with the government the possibility of converting the sugar it exports at a loss, some 800,000 metric tons annually, into ethanol from domestic consumption instead. Doing so would turn the finances of the sugar mills and sugarcane farmers around, but only if the government puts a production subsidy or other policy driver in place. Back in 2013, the Treasury said that a subsidy could be funded through a 3 or 4 cents increase on the fuel levy.

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Category: Policy

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