The International Trade Administration Commission of South Africa (ITAC) has rejected an application by Grain SA and the South African Cereals and Oilseeds Trade Association (SACOTA) to amend South Africa's wheat tariff system.
In a notice published in the Government Gazette, ITAC said the Dollar-Based Reference Price (DBRP) for wheat would remain at $279 per tonne, rejecting an application to raise the reference price to $289/t. The commission also rejected a proposal to introduce an automatic mechanism for implementing tariff adjustments.
Responding to the decision, Grain SA warned that weaker domestic wheat production could increase South Africa's reliance on imports and expose the country to international price shocks, exchange-rate volatility and global supply-chain disruptions.
The decision follows concerns raised by Grain SA and SACOTA over delays in the wheat tariff system. In May, the organisations warned that lengthy delays between tariff trigger events and implementation were creating uncertainty for producers and undermining the effectiveness of tariff protection. Their application also sought the introduction of an automatic trigger mechanism to address those delays.
ITAC rejected the proposal, finding that it would be incompatible with the existing legislative framework because tariff amendments require ministerial approval before they can take effect.
According to ITAC, the current DBRP continues to provide effective support to local wheat producers by covering production costs and enabling reasonable profitability. The commission said domestic wheat production had increased over the past decade, supported by improved yields, while local producers maintained a price advantage over imported wheat.
