Effects of sugar taxation on small-scale canegrowers in eMpangeni, KwaZulu-Natal

Abstract

In April 2018, the South African government implemented a Health Promotion Levy (HPL), commonly known a sugar tax, on sugar-sweetened beverages (SSBs). This followed the discovery that the regular consumption of SSBs is associated with an increased risk of dental cavities, obesity and noncommunicable diseases. Since the introduction of the sugar tax, there has been a noticeable reduction in the demand for sugar. While sugar taxation is a necessary intervention towards addressing obesity and non-communicable diseases, this has a significant financial impact in the sugar industry. Equally affected are the small-scale canegrowers who rely solely on the production of sugarcane for income. The study investigated the effects of the sugar tax on small-scale canegrowers in the Empangeni area of KwaZulu-Natal. To achieve this, the study adopted a cross-sectional research design where quantitative data was collected from 262 small-scale canegrowers in the Empangeni region. Descriptive statistics and the principal component analysis technique were subsequently utilised to analyse the data. Several key findings emerged from the study which revealed significant concerns among respondents, indicating a consensus on declining sugarcane production, some growers abandoning their farms, and adverse impacts such as job losses. Additionally, a lack of confidence in government support to mitigate these effects was evident. These insights highlight the necessity for policy interventions to address the challenges faced by small-scale canegrowers.