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.

Read the full media statement below for more details.

The agreement was signed during a meeting of the Executive Oversight Committee held at the sugar industry headquarters in Mount Edgecombe, Durban. The first phase of the Master Plan, launched in 2020, focused on stabilizing the industry during a period marked by challenges such as the sugar tax, Covid-19, social unrest, and economic pressures.

Led by the Department of Trade, Industry and Competition (the dtic), the Master Plan brings together key industry stakeholders to strengthen and protect the sugar value chain through a shared framework of commitments and responsibilities.

A key focus of the second phase will be supporting small-scale farmers, who remain central to the Master Plan process. SAFDA noted that small-scale growers continue to benefit from initiatives such as the Premium Price Payment, which provides around R70 million annually in additional support to farmers.

Speaking during the signing ceremony, SAFDA Executing Chairman Dr Siyabonga Madlala emphasized the need for diversification opportunities within the industry, including the potential production of bioethanol. He also reaffirmed SAFDA’s commitment to transformation and ensuring that small-scale farmers remain protected and included in future developments.

Phase Two of the Master Plan is expected to focus on areas such as trade protection, diversification, and the advancement of small-scale growers, while addressing ongoing industry challenges including sugar imports, global market pressures, and the financial instability facing some sugar millers.