SRA SUGAR ORDER NO. 9

WHEREAS, a meeting was held this morning among the planters, millers
and traders upon the instance of Congressman Jose R. Zubiri, Chairman of
a special committee created by Congressman Leonardo P. Guerrero,
Chairman of the Sub-Committee on Edible Crops, Congressman Romeo C.
Guanzon, a member of the committee, was present.

WHEREAS, Congressman Jose R. Zubiri presided over the conference. In
attendance were representatives of the various sectors of the sugar
industry. A list is hereto attached as Annex “A”.

WHEREAS, the meeting was called in pursuance of an agreement reached
at the hearing held by the Sub-Committee on Edible Crops of the
Committee on Agriculture on February 21, 1990, in order that the Special
Congressional Committee and officials of the Sugar Regulatory
Administration could discuss the proposal made by Congressman Romeo G.
Guanzon as part of his privilege speech and see whether the same could
be adopted by the Sugar Regulatory Administration in lieu of the
existing policy on allocation of production for export to the United
States, domestic, reserve, and world market.

WHEREAS, the purpose of the conference was to arrive at a policy
solution that would take into account the improvement of the price of
domestic sugar with the end in view of helping the producers,
particularly the small planters.

WHEREAS, after the SRA officials showed to the satisfaction of
everyone that there would be enough sugar to supply the need of all the
requirements, but considering the plight of the small planters in the
light of prices in the domestic market which are unfavorable to the
producers, particularly the small planters, a consensus was reached that
there is a need to protect the domestic market, that is, improve the
price of domestic market sugar to a level that would provide a fair
return or margin over cost of production and at the same time affordable
to the consumers.

WHEREAS, a vote of confidence was given by a great majority of those present to the SRA to provide the solution.

WHEREAS, it has come to the attention of the Sugar Board that there
are uncertainties in the minds of the various components of the sugar
industry that “D” sugar will be converted to “B” thus depressing the
price of “B” and “C” sugar.

WHEREAS, there is need to correct the wrong impression.

WHEREAS, pending a continuing study of the written proposals made by
the National Federation of Sugarcane Planters, through its president,
Congressman Romeo G. Guanzon, an immediate measure to be taken by the
Sugar Regulatory Administration for the purpose of implementing the
above objective of improving the price of domestic sugar but never to
violate the price control law.

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

SECTION 1. That the allocation for the world free market
or “D” sugar set at eight percent (8%) of estimated production of the
crop year 1989-1990 shall remain as “D” sugar and cannot be converted to
any other class of sugar, particularly domestic or “B” sugar.

SECTION 2. This Order shall take effect immediately.

Adopted: 1 March 1990

(SGD.) ARSENIO B. YULO, JR.
Chairman/Administrator

Effective: 1 March 1990