Trade, Industry and Competition Minister Parks Tau has dealt a significant blow to South Africa’s wheat producers by rejecting their application to raise the dollar-based reference price (DBRP) on wheat from $279 to $289 a tonne. The application, submitted by GrainSA and the South African Cereals and Oilseeds Trade Association (Sacota), argued that the existing tariff system no longer adequately shields local farmers from heavily subsidised imports and volatile global markets. However, Tau endorsed the recommendation of the International Trade Administration Commission of South Africa (Itac), which found that the current $279 DBRP offers an estimated 18% margin over average production costs and gives domestic wheat a 16% price advantage over imports.