The South African Farmers Development Association (SAFDA) has welcomed the decision by the Durban High Court to adjourn the hearing on the application to liquidate Tongaat Hulett Limited (THL), describing the development as a positive step toward finding a long-term solution for the sugar industry.
The liquidation application, filed by the Business Rescue Practitioners in February 2026, was heard earlier today in Durban. During proceedings, the court considered arguments from all parties on whether provisional liquidation should be granted. In her ruling, Judge Rithy Singh acknowledged the wider socio-economic impact such a decision could have on KwaZulu-Natal, emphasizing that Tongaat Hulett remains a critical contributor to the province’s economy.
The matter has now been adjourned to 17 and 18 June 2026, allowing stakeholders time to explore a more sustainable resolution. SAFDA also welcomed the Industrial Development Corporation’s additional R200 million in Post Commencement Funding, which will assist THL in completing mill maintenance and preparing operations for the current crushing season.
For many small-scale and emerging sugarcane farmers, the adjournment brings temporary relief after months of uncertainty surrounding the future of THL mills. However, concerns remain over cash flow pressures, delayed payments, and operational planning as growers continue to navigate difficult conditions, including ongoing sugar imports impacting the local industry.
SAFDA says it will continue engaging all relevant stakeholders to ensure that farmers remain central to any long-term solution for the industry.