WHEREAS, Section 2 (B) of Executive Order (EO) No. 18, Series of 1986, mandates the SRA to establish and maintain such balanced relation between production and requirement of sugar and such marketing conditions as will ensure stabilized prices at levels reasonably profitable to the producers and fair to consumers;

WHEREAS, Section 5 of Sugar Order No. 1, Series of 2007-2008 provides that The SRA shall undertake periodic assessment of the crop year 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 situation";

WHEREAS, the "D" or world market sugar production for crop year 2007-2008 week ending March 24, 2008 has already exceeded 73,000 metric ton (MT), while the 'IT to "E" sugar availments of sugar-based food processors/exporters for calendar year 2nn7 was only 49,312.57 metric tons (MT);

WHEREAS, the Sugar Regulatory Administration/Presidential Anti-Smuggling Group (PASG)/Bureau of Customs have collectively seized/auctioned 38,298 Ikg-bags of smuggled refined sugar classified as "D" sugar for re-export or for the exclusive use of sugar-based food exporters;

WHEREAS, the confiscated/auctioned refined sugar and the "D" or World Market sugar alreadyproduced locally are enough to meet the year 2008 requirements of the sugar-based food processors/exporters;

WHEREAS., consultations have been done with sugar industry leaders and other stakeholders who have recommended to terminate the "D" sugar allocation for Crop Year 2007-2008;

WHEREAS, it is also part of SRA's mandate to classify an appropriate percentage of sugar produced during peak production months as Reserve ("C" sugar) for release during off-milling months in order to ensure that supply is relatively even throughout the year;

WHEREAS, continuing rainy weather in key sugarcane growing areas caused delays in the planting of the next crop which will consequently result to possible delays/low initial output at the start of milling for Crop Year 2008-2009,

WHEREAS, the SRA needs to ensure the availability of adequate sugar supply during off-milling months and during the early milling season, and therefore finds it advisable to terminate the 4% "D" sugar allocation effective week-ending April 6, 2008 and henceforth place it under "C" or Reserve classification;

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 the SRA Sug Order No. 1 -B, Series of 2007-2008 are hereby revised as herein provided;

(b) All sugar produced beginning week-ending 06 April 2008 shall be quedanned by the mill companies, as implementers of this Sugar Order, in the following classification and percentage allocation:

"A" or U.S. Quota Sugar	6.00%
"B" or Domestic Sugar	75.00%
"C" or Reserve Sugar	19.00%
Total	100.00%

SECTION 2. Consistency. Other provisions of Sugar Orders No. 1, 1-A and 1-B, Series of 2007-2008 not contrary hereto shall remain in full force and effect.

SECTION 3. Separability Clause. Provisions of Sugar Orders, circular letters, rules and regulations contrary to or inconsistent with this Sugar Order are hereby revised, modified or revoked accordingly.

SECTION 4. Effectivity This Sugar Order shall take effect beginning week-ending 06 April 2008.

Adopted: 28 March 2008

BY AUTHORITY OF THE SUGAR BOARD:

(SGD.) RAFAEL L. COSCOLLUELA
Administrator