KZN riots: R84 million in losses threaten thousands of rural jobs in the sugar industry
17 August 2021
The South African Canegrowers Association (SA Canegrowers) is extremely concerned about the impact on the sugar industry of the recent unrest that swept through parts of KwaZulu Natal and Gauteng. SA Canegrowers has therefore written to government requesting immediate financial relief to be paid to growers, especially small scale growers, as the extent of the damage becomes clearer by the day, there are now thousands of precious rural jobs are at risk.
At the time of the riots, SA Canegrowers reported a running total of the potential damage to local canegrowers as R300 million if mills could not crush the more than 500,000 tons of cane that was burnt in arson attacks. These fears are now materialising.
To date, mills in Kwa Zulu Natal have rejected 135,222 tons of damaged cane. This amounts to more than R84,5 million. Almost a third of the cane rejected thus far, more 38,000 tons, belongs to small-scale grows who are most at risk of not recovering from revenue losses of this magnitude.
The majority of small-scale growers have no form of insurance. While many await relief from fire insurance co-operative Grocane and the South African Special Risk Insurance Association(SASRIA), they have also been notified that all cane that was burnt prior to mill closures will not be covered by these entities, even though many mills only closed down after a large amount of cane had already been targeted by arsonists.