Sugar Act, 1978 (Act No. 9 of 1978)Sugar Industry Agreement, 2000Chapter 7 : South African Sugar Association and Disposal of Crop191 - 193. Financing Arrangements |
191. The following financing arrangements shall be carried out by the South African Sugar Association—
| (a) | all export sugar and export high test molasses delivered by mills in any one month, the proceeds of which are not received during the succeeding 45 days from the end of that month shall, on the expiry of the 45 days referred to in clause 186(c)i, be financed by the South African Sugar Association on the basis of 100% of the estimated export value thereof; |
| (b) | all export sugar and export high test molasses sold as at 31 March of each year, the proceeds of which are not received by that date, shall be financed by the South African Sugar Association on the basis of 100% of the estimated export value thereof, subject to clause 186(c)i; |
| (c) | the carry-over stocks of local market refined sugar and local market brown sugar unsold as at 31 March of each year and which each mill has on hand as at 31 March of each year shall be deemed to have been sold by that mill into the local market on and as at that date in order that the total output of each year may be regarded as sold during that year and the year's recoverable value prices may be properly determined with the least possible delay on the following basis— |
| (i) | the prices of carry over stocks of local market refined sugar and local market brown sugar respectively shall be the notional local market prices referred to in Chapter 6 applicable on 31 March of that year; |
| (ii) | the purchase price of export sugar, including the sugar equivalent as determined by the South African Sugar Association of high test molasses produced for export, shall be based on the estimated prices thereof as determined by the South African Sugar Association on the basis of the calculation of proceeds of export sugar referred to in clause 166(c); and |
| (iii) | each miller and refiner will undertake the realisation, as soon as possible, of the local market carry over stocks which it will be deemed to have sold into the local market and, within such period after realisation (being when the sugar concerned is actually sold to such miller’s or refiner’s customers) as will be laid down by the South African Sugar Association, shall notify the South African Sugar Association so that it may stop paying financing and storage costs for such carry over stocks; |
| iv. | except for each mill’s obligation to report to the South African Sugar Association actual sales during a subsequent season of carry over sugar deemed to have been sold as at 31 March of the immediately preceding season, carry over sugar which is deemed to be sold as at 31 March of a season shall not be included in the sales for the next season; and |
| (d) | any final molasses sold as at 31 March of each year, the proceeds of which are not received by that date and any stocks of final molasses unsold as at 31 March of each year, shall be financed by the South African Sugar Association on the basis of 100% of the estimated net value thereof; and |
| (e) | the amount paid by SASA in terms of clause 193 towards the cost of financing and storing carry over stocks of local market refined sugar and local market brown sugar deemed to have been sold into the local market in terms of clause 191(c) and the cost of financing final molasses in terms of clause 191(d) shall be industry obligations. |
[Clause 191 substituted by Notice No. 3770 of GG54123, dated 13 February 2026]
| 192. | A miller or refiner will be deemed to have sold into the local market at the notional prices prevailing as at 31 March all local market carry over stocks held as at 31 March so that the total saleable production each year may be regarded as sold during that year. |
[Clause 192 inserted by Notice No. 3770 of GG54123, dated 13 February 2026]
| 193. | The South African Sugar Association shall pay as an industry obligation, the sum of millers’ and refiners’ costs of financing carry over stocks in an amount calculated by applying the South African Sugar Association’s borrowing cost and, in respect of the millers’ and refiners’ storage costs for carry over stocks, a storage fee calculated at a rate determined by the South African Sugar Association from time to time. |
[Clause 193 inserted by Notice No. 3770 of GG54123, dated 13 February 2026]