WHEREAS, Sugar Order No. 1, Series of 2007-2008, provided for the following allocations: œA  or US Quota Sugar = 7%, œB  or Domestic Sugar = 80%, œC  or Reserve Sugar = 5% and œD  or World Market Sugar = 8%;

WHEREAS, Sugar Order No. 1 was premised on a sugar production of about 2.3 Million Metric Tons (MMT) and a domestic demand of about 1.9 Million Metric Tons (MMT);

WHEREAS, Section 5 of Sugar Order No. 1, states that SRA shall undertake periodic assessment of the 2007-2008 sugar production and on the basis of such assessment, it may adjust from time to time the percentage  distribution of the different classes of sugar and/or take the necessary action to address the supply situation in each market;

WHEREAS, Section 3 of Sugar Order No. 1, provides that the œC  or Reserve sugar therein allocated may be disposed of as œB  (Domestic) sugar or œD  (World market) sugar depending on the production and consumption trends ;

WHEREAS, rainfall in Negros/Panay for September 2007 was one hundred sixty percent (160%) above normal which resulted to delayed or slowed down harvest and low purity;

WHEREAS, as a result of unfavorable weather conditions, production of raw and refined sugar as of 30 September 2007 was lower by about forty percent (40%) and fifty percent (50%) respectively. On the other hand, withdrawals increased by nineteen percent (19%) and forty seven percent (47%) respectively, in comparison with the same period of Crop Year 2006-2007;

WHEREAS, local retail prices of raw and refined sugar have risen to P36.00/kg. and P40.00/kg. respectively, drawing unfavorable attention from the consuming public;

WHEREAS, there is a need to adjust the current sugar allocation policy in order to address the prevailing production/consumption (withdrawal) and price trends;

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

SECTION 1. Revised Percentage Allocation of Classes of Sugar.

a. The classification and percentage allocation of sugar production under SRA Sugar Order No. 1, Series of 2007-2008 are hereby revised as herein provided;

b. All sugar produced beginning week ending 21 October 2007 shall be quedanned by the mill companies, as implementors of this Sugar Order, in the following classification and percentage allocation:

œA  or U.S. Quota Sugar

-

6%

œB  or Domestic Sugar - 89% œD  or World Market Sugar

-

5%

TOTAL

-

100%

SECTION 2. Conversion of œC  or Reserve Sugar to œB  or Domestic Sugar.

a. All œC  or Reserve sugar produced since the start of the Crop year 2007-2008 (September  1, 2007) shall immediately be converted into œB  or domestic sugar.

b. The œC  quedan permits covering the œC  sugar subject of reclassification when surrendered to the issuing mill companies for the withdrawal therefrom of the corresponding  volume of sugar shall be stamped œRECLASSIFIED AS œB  OR DOMESTIC SUGAR PURSUANT TO S.O. No. 1-A, Series of 2007-2008  by the SPRO ™s assigned thereat.

SECTION 3. Effectivity. This Sugar Order shall take effect immediately.

SECTION 4.  Separability Clause. Other provisions of Sugar Order No. 1, Series of 2007-2008 not contrary hereto shall remain in full force and effect.

SECTION 5. Consistency. Provisions of Sugar Orders, Circular Letters and/or other regulations contrary to or inconsistent with this Sugar Order are hereby amended, modified, or revoked accordingly.

Adopted: 17 Oct. 2007