South Africa’s sugar industry is in talks with the government over a potential subsidy that could see it convert more than a third of its annual output into biofuel, according to a grouprepresenting companies in the sector.Currently 800,000 tons of the industry’s annual output of 2.1 million tons is being exported at a loss, according to the South African Sugar Association.The discussions follow the signing of the so-called Sugar Master Plan by the government, farmers, industrial users and retailers in the 16 billion-rand ($1.06 billion) industry. The plan seeksto ease a crisis caused by a flood of cheap imports, much of those from neighboring eSwatini, and a tax on sugar-sweetened drinks that lowered demand from beverage makers.While the plan includes offtake agreements with industrial users and retailers that helped boost local demand by 14% in the year that ended in March, diversifying uses for the crop couldimprove the industry’s sustainability, Trix Trikam, executive director of the sugar association said.
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