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The amendment to reduce South Africa’s wheat import tariff from R153,70/tonne to a zero-tariff rate was published in the Government Gazette on 6 August 2026. This followed the trigger of the variable tariff formula on 12 May this year. While the publication is welcomed, the implementation comes almost three months after the trigger. This delay highlights inefficiencies in the current wheat tariff administration process. The concern about the delay is the uncertainty this causes in the wheat value chain.
Anyone managing a business knows, and the Department of Trade, Industry and Competition (the dtic) should know this as well, that uncertainty comes with a risk premium and a cost. South African Cereals and Oilseeds Trade Association’s (SACOTA) wheat importing members find it difficult to manage this risk. Ultimately, it ends up with the consumer who pays more for an unprocessed ingredient. Next time in the up-cycle, it will be the producer who pays the price.
Figure 1: Excerpt of the zero-tariff rate published in the Government Gazette on 6 August 2026.
SACOTA and Grain SA requested an amendment
South Africa’s wheat tariff is based on a variable tariff formula. This tariff aims to protect local wheat producers when international wheat prices are low; conversely, when global prices increase, the tariff should decrease or fall away to avoid unnecessary costs to consumers. This only functions well when the tariff is implemented in a timely way and when there is transparency about when a tariff adjustment will be made.
The persistent delays between the triggering of a tariff adjustment and its publication undermine the effectiveness of the variable tariff system. These delays create uncertainty for grain importers and the broader value chain, as market participants are unable to predict when tariff adjustments will take effect. For example, in the current case, the market was aware that an adjustment towards a zero tariff was imminent since 12 May, but when the tariff reduction would be published was unknown to everyone.
Recognising these challenges, SACOTA and Grain SA, supported by the industry, applied to amend the implementation methodology to a more predictable system, similar to the mechanism used for the adjustment of the fuel levy. The objective was not to change the tariff formula itself, but rather to ensure that the timing of a tariff adjustment would be known to the market in advance.
Table 1: Timeline from trigger to implementation.
| Delay from trigger to implementation | |||||
| Tariff rate | Date triggered | Implementation date | Current methodology | Current methodology | Proposed methodology |
| R851,50 | 27 May 2025 | 11 July 2025 | 33 working days | 1,5 months | 24 working days |
| R619 | 27 November 2027 | 13 February 2026 | 52 working days | 2,6 months | 22 working days |
| R153,55 | 17 March 2026 | 15 May 2026 | 40 working days | 2 months | 10 working days |
| FREE | 12 May 2026 | 6 August 2026 | 62 working days | 2,9 months | 14 working days |
After a 19-month investigation, the application was ultimately rejected. Instead, the report published in the Government Gazette on 17 June 2026, stated that “coordinated engagements will be facilitated between the Commission, the dtic, SARS and the National Treasury with the aim of considering potential alternative solutions in an effort to address implementation delays …”. Despite the acknowledgement of the problem, it still took seven weeks after this statement was published before the zero-tariff was finally implemented.
Tariff implementation delays cause additional taxes
Based on South African Grain Information Service (SAGIS) import data, approximately 430 000 tonnes of wheat were imported between 1 June 2026 the date on which the zero-tariff would have come into effect under the proposed implementation methodology and 7 August 2026, when the amended tariff was finally implemented.
As a result of the implementation delay, these imports were effectively subject to the R153,70/tonne import tariff, despite the variable tariff formula having already indicated that a zero-tariff rate should apply. This translates to around R66 million in additional and unnecessary ‘taxes’ levied on consumers who are already struggling to make ends meet.
Figure 2: SAGIS import data of wheat import amounts and tariffs for each week from 3 October 2026 to 7 August 2026.
The delays surrounding the implementation of tariff adjustments form part of broader concerns regarding the South African wheat industry. In response to these concerns, the Wheat Forum Steering Committee requested that the National Agricultural Marketing Council to establish a Section 7 committee under the Marketing of Agricultural Products Act to investigate the state of the wheat industry and provide recommendations to the Minister of Agriculture. The committee has subsequently been established and comprises of stakeholders from across the wheat value chain, including SACOTA.
Its mandate is to investigate various aspects affecting the industry, including the operation and effectiveness of the wheat tariff. The aim is to identify opportunities to improve the competitiveness and long-term sustainability of the South African wheat value chain.
Compiled by Juan-Pierre Kotzé, manager of research and projects at SACOTA. For more information, call 076 814 5888 or send an email to info@sacota.co.za. – Press release, SACOTA
