SACOTA flags wheat tariff cut in South Africa as delays persist
Industry warns that slow rollout of new tariff levels continues to disrupt planning and trade.
SOUTH AFRICA – South Africa’s wheat import tariff has dropped sharply after a new trigger, but delays in putting the change into effect continue to frustrate the grain sector.
A report by the Southern African Cereals and Oilseeds Trade Association (SACOTA) shows that the tariff should fall from R619.00 per tonne to R153.55 per tonne, based on the latest data from the South African Grain Information Service. This means the tariff drops by R465.45 per tonne, leaving it at about a quarter of its current level.
In dollar terms, the tariff falls from about US$33.50 per tonne to US$8.30 per tonne, a cut of roughly US$25.20 per tonne.
The association links the trigger to a steady rise in global wheat prices. “Over the past three consecutive weeks, global prices have risen by more than $10 per tonne from the previous trigger level,” the report states.
Analysts say the lower tariff could put pressure on local wheat farmers. At the same time, they note that higher global prices may raise the cost of imports, which could balance some of that pressure.
“The reduction may further impact on wheat production profitability although the counter argument is that international wheat prices, and therefore the cost of wheat imports, has increased,” the report explains.
Delays continue to affect the sector
Even though the tariff trigger took place on 17 March, authorities have not yet put the new rate into effect. This delay remains a key concern for traders and producers.
“This delay in the implementation of the tariff remains a concern,” the authors say, adding that the industry still waits for feedback from the International Trade Administration Commission of South Africa on plans to automate the system.
Past data shows that delays have become common. The current tariff of R619.00 per tonne, triggered in November 2025, only took effect in February 2026 after about 52 working days. In some cases, delays have stretched to as long as 129 working days.
Industry players continue to push for an automated process similar to the fuel levy system. They believe this would reduce delays and give clearer signals to the market.
“The suggested system would reduce delays and give the industry much needed transparency and predictability,” the report states.
The association says it raised the issue with the Minister of Agriculture earlier in March, warning that ongoing delays continue to affect trade in cereals.
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