Wheat Imports Threaten to Rise as ITAC Rejects Tariff Relief for Local Growers

South Africa faces an escalating risk of becoming heavily reliant on foreign wheat imports following the International Trade Administration Commission’s (ITAC) decision to reject a critical upward adjustment to the domestic wheat tariff framework. The warning comes from Heleen Viljoen, Senior Economist at Grain SA, speaking in response to queries from the Cape Chamber of Commerce and Industry following government's formal gazetting of the decision.

The regulatory body dismissed a joint application by Grain SA and the South African Cereals and Oilseeds Trade Association (SACOTA) that sought to increase the Dollar-Based Reference Price (DBRP) for wheat from US$279 to US$289 per ton. ITAC also rejected a proposal to implement an automatic tariff adjustment mechanism designed to eliminate lengthy administrative delays between global price triggers and domestic implementation.

Industry experts warn that maintaining the status quo disregards the severe financial squeeze confronting local agricultural producers, who are battling skyrocketing input costs, volatile weather conditions, and heavily subsidised global competitors.

"It is indeed true, South Africa has been losing wheat hectares over the past five years," Viljoen told the Chamber. "The outcome of the ITAC investigation has now made it a bigger risk that we may see this production decline accelerate in the coming seasons. Consequently, the country could be set to become far more dependent on imports."

Agricultural bodies argue that by keeping the wheat reference price stagnant, the policy framework fails to insulate domestic farms from distorted global trading dynamics. Without robust policy support, local wheat producers may increasingly phase out the crop entirely, undermining national food security and putting rural employment under further strain.