Sugar Act, 1978 (Act No. 9 of 1978)

Sugar Industry Agreement, 2000

Chapter 6 : Determination and Distribution of Proceeds and Cane Prices

160 - 163. Interpretation

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160. In this Chapter, unless the context otherwise indicates—
(i) “the Growers' Statutory costs” means for the first year of the Transitional Period, the amount calculated by the sum of the costs of SACGA and SAFDA respectively approved by the Association’s Council for the 2019/2020 season, escalated on 1 April 2020 by a rate equal to the year on year change in the headline consumer price index, for all urban areas, for January as reflected in table P0141 or its successor as published by Statistics SA, expressed as a percentage, and for each season of the Transitional Period thereafter, the Growers’ Statutory Costs for the immediately preceding season escalated on 1 April (such escalation being compounded each season) by a rate equal to the year on year change in the headline consumer price index, for all urban areas, for January as reflected in table P0141 or its successor as published by Statistics SA, expressed as a percentage and less the Meeting Costs and other industry obligations in terms of clause 175;

[Clause 160(i) substituted by section 1(s) of Notice No. R. 700, GG43466, dated 23 June 2020]

(ii) “the notional local market price” means the notional price attributed to local market brown sugar, refined sugar and molasses, respectively, determined from time to time by the South African Sugar Association in terms of clause 161; and
(iii) “milling” includes refining and “miller” includes refiner.

 

161. The South African Sugar Association shall, for the purpose of determining the gross proceeds from the sale of production in terms of this Chapter, from time to time determine—
(a) separately for brown and refined sugar, respectively, the notional local market price of sugar to be sold on the local market by millers, ex-factory in bulk or packed in one ton bags or 25kg pockets; and
(b) for molasses, the notional market price of molasses to be sold on the local market by millers ex-factory and which will also represent the value of molasses utilised by millers.

 

162.        

(a) The South African Sugar Association shall collect the Growers’ Statutory Costs in each year by way of a levy imposed in terms of Chapter 7. MCP’s shall be subject to a maximum levy equal to the lesser of R4.00 per ton cane delivered (and this R4.00 amount shall be adjusted for each season starting from 1 April 2021 by the year on year change in the headline consumer price index, for all urban areas, for January as reflected in table P0141 or its successor as published by Statistics SA or its successor) and the average per ton cane levy required to recover the Growers’ Statutory Costs each year.
(b) The South African Sugar Association shall pay to SACGA and SAFDA equal portions of the Growers’ Statutory Costs so collected.

[Clause 162 substituted by section 1(t) of Notice No. R. 700, GG43466, dated 23 June 2020]

 

163. If the South African Sugar Association, in terms of the proviso to clause 133, declares that any cane delivered in March of any year shall be deemed to be delivered in the following year the sugar and molasses produced from such cane by the mill concerned shall similarly be deemed to be produced in that following year.