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The closure of Tongaat Hulett poses a significant threat to South Africa's sugarcane industry, endangering jobs and the economy of KwaZulu-Natal. The government has expressed concerns over the immediate economic impact on rural communities dependent on sugar.

In response, the industry is diversifying into bioenergy, bio-products, and value-added crops. Farmers are generating electricity from sugarcane byproducts and expanding into craft spirits. However, the industry faces challenges from increased sugar imports and the ongoing Health Promotion Levy, which suppresses local demand. SA Canegrowers is calling for government intervention to protect jobs and ensure the sector's viability.