WHEREAS, Executive Order No. 18. dated 28 May 1986, vested the Sugar Regulatory Administration with the power "to establish and maintain a balanced relationship between sugar production and the requirements of sugar and to maintain such marketing conditions as will ensure stabilized prices at a level reasonably profitable to the producers and fair to consumers";

WHEREAS, domestic demand is estimated to be at One Million Nine Hundred Thousand Metric Tons (1,900,000 M.T.) this Crop Year 1999-2000;

WHEREAS, the United States has allocated for the Philippines a Sugar Quota Year 1999-2000, said quota to be officially announced later;

WHEREAS, in order to promote the effective merchandising of sugar and its by-products in the domestic and foreign markets, it will be necessary to allocate the 1999-2000 sugar production to such quantities as to place those engaged in the sugar industry on a basis of economic viability;

NOW, THEREFORE, pursuant to the powers vested in the Sugar Regulatory Administration (SRA), it is hereby ordered that:

SECTION 1. Production and Classes of Sugar. - Sugar production for the Crop Year 1999-2000 (September 1, 1999 to August 31, 2000 is estimated at 1,800,000-1,850,000 metric tons and shall be quedanned by the mill companies, as implementors of this Sugar Order, in the following percentages:

"A" or U.S. Quota Sugar	8%
"B" or Domestic Sugar	92%
	---
	100%

SECTION 2. (a) As a general rule, except as hereinafter provided, sugar and molasses production for the CY 1999-2000 shall be issued by mill companies weekly sugar quedan-permits/molasses storage certificates in the name of the individual planter or mill company.

(b) In cases, however, where a planter has expressly authorized the mill company in writing or has executed a production/marketing agreement in favor of his association/cooperative which agreement provides for the consolidation of his weekly sugar/molasses production in the name of the association/cooperative, mill company concerned shall issue consolidated weekly sugar quedan-permits/molasses storage certificates in the name of the association/cooperative with an attached listing of the planters and their corresponding production covered by said sugar quedan-permits/molasses storage certificates.

SECTION 3. Periodic Assessments, Percentage Adjustment. - The SRA shall undertake periodic assessment of the 1999-2000 sugar production and on the basis of such assessment, it shall adjust from time to time the percentage distribution of the different classes of sugar.

SECTION 4. Revalidation of Unused Quedan Permit Forms. - Pursuant to Section 6, Sugar Order No. 1, Series of 1995-96, dated 01 September 1995, it is hereby reiterated, that, beginning this Crop Year 1999-2000, and thereafter, all unused sugar quedan-permit forms of the previous crop year will no longer be allowed for revalidation.

SECTION 5. Repealing Clause. - All provisions of Sugar Orders, Circular Letters, rules and regulations inconsistent with or contrary to this Sugar Order are hereby amended, modified, or revoked accordingly.

Adopted: 26 Aug. 1999

(SGD.) NICOLAS A. ALONSO
Administrator