Wheat producers see red over Tau’s tariff snub (opens original article in a new tab)

South African wheat producers are dissatisfied with Trade Minister Parks Tau's rejection of their request to raise the domestic wheat price, as they believe it fails to protect them from imports and market challenges.

• Wheat producers in South Africa are upset after Trade Minister Parks Tau rejected their request to increase the domestic dollar-based reference price (DBRP) for wheat from $279 to $289 a tonne.
• The International Trade Administration Commission (Itac) concluded that the current DBRP of $279 a tonne provides effective support, covering production costs and enabling reasonable profitability with an 18% margin over costs.
• GrainSA and Sacota argue that the existing tariff system does not adequately protect local producers against subsidized imports and market volatility, and they plan to challenge the decision legally.