WHEREAS, the demand and withdrawal of "B" sugar have exceeded projections by 84,000 M.T. as of August, 1990;

WHEREAS, the Cabinet, through the Secretaries of Agriculture, and Trade and Industry, has made strong representations with the Sugar Regulatory Administration to immediately institute measures to ensure a stable supply of sugar nationwide, specially in the calamity-stricken areas;

WHEREAS, the country has about 100,000 M.T. of unshipped sugar destined for the world market and classified as "D" sugar;

WHEREAS, it is in the national interest to increase the domestic supply without jeopardizing our world market commitments;

NOW, THEREFORE, under and by virtue of the powers and authority vested in the Sugar Regulatory Administration, it is hereby ordered that:

SECTION 1.       All holders of world market "D" sugar are hereby given the option to temporarily use their "D" sugar as "B" sugar for immediate release to the domestic market. In order to guarantee the replacement of the borrowed "D" sugar, the following guidelines shall be followed:

a.       In the case of sugar producers, be they planters or millers, they shall be required to sign an undertaking to replace the quantity of the borrowed "D" sugar from their "B" sugar production of Crop Year 1990-91 not later than one month after the end of milling in their respective mill districts.

b.       In the case of sugar traders/exporters who are not similarly situated as the sugar producers who can guarantee compliance with their obligations under paragraph (a) hereof, they shall be required to deposit a cash bond in the amount of P80.00 per picul with the National Council of Sugar Producers. Said deposit will be reimbursed proportionately to the extent of the replacement of their borrowed "D" sugar with 1990-1991 "B" sugar not later than March 31, 1991. Failure to replace said borrowed "D" sugar shall mean forfeiture of the P80.00 cash bond in favor of the National Council of Sugar Producers as restitution to the sugar producers who will be disadvantaged by such failure.

SECTION 2.       The Administrator is hereby authorized to issue the implementing rules and regulations pertinent to this Order.

SECTION 3.       All orders, rules, regulations and circulars Inconsistent with this Order are hereby revoked.

SECTION 4.       This Order takes effect immediately upon issuance hereof.

Adopted: 23 Aug. 1990

(SGD.) ARSENIO B. YULO, JR. Chairman/Administrator	(SGD.) RODOLFO A. GAMBOA SRA Board Member
(SGD.) JOSE MA. T. ZABALETASRA Board Member