ITAC Rejects Wheat Tariff System Overhaul

The International Trade Administration Commission of South Africa (ITAC) has rejected proposals to increase the wheat reference price and introduce an automatic mechanism for implementing tariff adjustments.

In a notice published in the Government Gazette, ITAC said the Dollar-Based Reference Price (DBRP) for wheat would remain at $279 per tonne. The commission rejected an application by Grain SA and the South African Cereals and Oilseeds Trade Association (SACOTA) to raise the reference price to $289/t.

The decision follows concerns raised by Grain SA and SACOTA over delays in the wheat tariff system, which they warned could expose the country to international price shocks, exchange-rate volatility, and global supply-chain disruptions. ITAC found that introducing an automatic trigger mechanism would be incompatible with the existing legislative framework.