The mandatory Vitamin A fortification of sugar is creating heavy cost pressures for Zimbabwean producers, placing local sugar at a distinct disadvantage against cheaper, unfortified imports.
The Parliamentary Portfolio Committee on Industry and Commerce, which held an inquiry of the local sugar industry, said the policy, introduced in 2017, adds to production costs at a time when the sector is already facing high energy and transport costs
Zimbabwe’s sugar industry is centred on two mills operated by Tongaat Hulett in the South-East Lowveld and remains an important source of employment, foreign currency and electricity through cogeneration.
The committee’s inquiry gathered evidence from the Zimbabwe Sugar Association (ZSA), sugar cane farmers, millers, Delta Beverages and government ministries as it assessed challenges faced across the industry, from cane production to refining.
“The committee observed that while Vitamin A fortification has public health benefits, its implementation has imposed additional costs on producers without corresponding regulatory alignment in import controls, thereby disadvantaging local producers,” the committee said in a report.
According to the report, fortification adds between US$9 and US$10 to the cost of producing each metric tonne of sugar.
Producers have argued that the additional expense becomes more significant when combined with other costs affecting the sector.
The committee also gathered that weak enforcement of import controls has allowed smuggled sugar to enter the Zimbabwean market, creating further competition for local producers.
Delta Corporation said the government’s sugar tax had added another layer of pressure, particularly for beverage manufacturers and consumers.
Patricia Murambinda, Delta’s general manager for corporate affairs, told the committee that the tax introduced in February 2024 had pushed beverage prices higher and weakened demand for sugar.
“The sugar tax introduced in February 2024 increased beverage prices by 15 to 45 percent, reducing demand and leaving over 90 000 tonnes of sugar uncommitted for 2025,” Murambinda said.
Although the tax was reduced by half in 2025, she said the measure continued to affect the market.
“It continued to distort the market and reduce competitiveness,” Murambinda said.
Energy and transport costs have added to the industry’s difficulties. The Zimbabwe Sugar Association told the committee that coal used to produce steam for milling has to be transported by road from Hwange because of problems with the rail network.
The industry consumes about 1,3 million litres of diesel each month, further increasing the cost of moving and processing sugar.
Producers are also dealing with disagreements over the division of proceeds between cane growers and millers. The current revenue-sharing formula gives farmers 80,5 percent of proceeds and millers 19,5 percent, compared with a regional average of about 63 percent for growers and 37 percent for millers.
The committee said the combination of production, taxation, energy and logistics costs was placing pressure on the entire sugar value chain.
It recommended that the Ministry of Industry and Commerce include Vitamin A fortification as a condition when issuing permits for table sugar by 31 October 2026.
The Finance ministry was also urged to review the sugar tax and fortification framework before the end of 2026, with the committee calling for policies that protect public health without undermining the competitiveness of local producers.
The recommendations also cover wider constraints, including rail infrastructure, land tenure and water billing, which the committee said require attention to support the long-term viability of the industry.