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 levels reasonably profitable to the producers and fair to consumers;

WHEREAS, domestic demand is estimated to be slightly below 2.0 Million Metric Tons this Crop Year 2005-2006;

WHEREAS, the Philippines is expected to be allocated 13.5% of the total import requirements of the U.S. for Quota Year 2005-2006, or an equivalent of 142,160 MTRV (137,353 MTCW);

WHEREAS, the replenishment of the outstanding "A" and the unshipped "A" of Crop Year 2004-2005 will result to significant volume of "A" sugar available for the aforementioned U.S. Quota Year 2004-2005;

WHEREAS, in order to promote the effective merchandising of sugar and its products in the domestic, U.S. and World markets, it will be necessary to allocate the Crop Year 2005-2006 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 2005-2006, (September 01, 2005 to August 31, 2006) is expected to be 2.018 Million 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	-  6.00%
"B" or Domestic Sugar	- 94.00%
	------------
Total	100%

SECTION 2. (a) As a general rule, except as hereinafter provided, sugar and molasses production for the Crop Year 2005-2006 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 of "A" and "B" sugar, 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 2005-2006 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 situation.

SECTION 4. Revalidation of Unused Quedan Permit Forms - Pursuant to Section 6, Sugar Order No. 1, series of 1995-1996, dated 01 September 1995, it is hereby reiterated, that, beginning this Crop Year 2005-2006, and thereafter, all unused sugar quedan-permit forms of the previous crop year shall 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: 23 Aug. 2005

(SGD.) JAMES C. LEDESMA
Administrator