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Price hikes threaten food security - TAU


The Transvaal Agricultural Union says the 81c per litre petrol price hike, announced by the energy department on Friday, is bad news for the agriculture sector and could affect food security in South Africa.

TAU president Louis Meintjes, says the fuel price rise, the budget announcement of higher fuel levies, Eskom's electricity price increase, the farmworkers' minimum wage increase, and pending e-tolling in Gauteng is all too much for farmers.

On Thursday, the National Energy Regulator of SA announced that there would be an 8% increase in electricity prices over the next five years, and a day earlier, Finance Minister Pravin Gordhan announced that fuel levies would go up by 15c/litre, with an additional eight cents a litre going to the Road Accident Fund.

In February, Labour Minister Mildred Oliphant announced a new minimum wage for farmworkers of R105 a day - up from R65.

Meintjes says farmers remain price takers, which means that they cannot recover higher input costs and taxes, and are expected only to pay and keep on producing.