AMENDING SUGAR ORDER NO. 1-B SERIES OF 2008-2009, TERMINATING THE “DX” SUGAR ALLOCATION AND, IN LIEU THEREOF, ALLOCATING 4.5% FOR “DR” OR WORLD MARKET RESERVE SUGAR

WHEREAS, Sugar Order No. 1-B, Series of 2008-2009 allocated four and a
half percent (4.5%) for “Dx” or World Market export sugar;

WHEREAS, the unpredictable wet/cold season and the reduction in
sugarcane tonnage observed during the current milling season creates the
possibility that sugar production might be lower than initially
projected;

WHEREAS, because of this possibility, there is a need to institute
measures to ensure enough supply of sugar to meet domestic requirements
for “B” and “De” sugar; without losing sight of the probability that
this “Dr” sugar may still have to be exported;

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

SECTION 1. The sugar allocation in Section 1 of Sugar Order No. 1-B, Series of 2008-2009 is amended as follows:

“A” or U.S. Quota Sugar	10.0%
“B” or Domestic Sugar	68.0%
“C” or Reserve Sugar	15.0%
“Dr” or World Export Reserve Sugar	4.5%
“De” or Sugar-based Food Exporters	2.5%
	100%
	====

SECTION 2. Quedanning of “Dr” sugar.

2.1 Quedan Form. The “A” sugar quedan-permit forms for
Crop Year 2008-2009 shall be used to cover production of “Dr” sugar
beginning week-ending February 8, 2009 and shall be issued after the
said “A” quedan-permits have been properly stamped as “Dr” or World
Market Reserve sugar and validated by the SRA Regulation Officers
assigned at the millsites.

2.2 Block quedanning of “Dr” sugar. Mill companies
shall, on a weekly basis, issue consolidated (block quedanning) “Dr”
quedan-permits to planters (planters’ share) in the name of the
planters’ association/cooperative as assignee, attached thereto the list
of planters by planters’ association/cooperative and their
corresponding volumes of “Dr” sugar.

“Dr” sugar quedans of non-affiliated sugar planters shall be
consolidated for the association or cooperative they appoint. Such
appointment shall be in writing addressed to the mill. Should there be
no appointed association or cooperative, the “Dr” quedans shall be
consolidated with the mill with a corresponding list of the individual
volumes of “Dr” sugar for each planter.

Sugar planters who wish to be “independent” or whose intentions is
to transact their “Dr” sugar individually shall inform the mill, copy
furnished the SRA. The mill shall automatically effect the request for
individual quedanning without need of prior approval from SRA.

Provisions of Sugar Order Nos. 1 and 1-B not contrary to or inconsistent with this Sugar Order shall remain in effect.

SECTION 3. Holding Period and Financing for “Dr” sugar.
The “Dr” or World Market Reserve sugar is intended for World Market
export but has been marked “r” (RESERVE) as factors may still affect
domestic supply and therefore may be reclassified to another market
destination as the situation requires. “Dr” sugar, therefore, cannot be
withdrawn unless the same has been converted to other classes in
separate sugar order(s) as the circumstances warrant.

Being a reserve sugar , the storage charges for “Dr” shall be the
same as with the “C” sugar or until it has been ultimately converted.

In as much as the final classification of “Dr” sugar is held in abeyance, producers are strongly advised not to sell their “Dr” sugar quedans.
For the time being, planters may opt for “Dr” quedan financing to meet
their financial needs during the “holding” period. For this purpose, the
Philippine Sugar Corporation has offered its services to accommodate
planters who may need “Dr” financing up to no later than June 28, 2009. A
separate Circular Letter shall be issued for this purpose.

SECTION 4. No verification /shipping deadline.
Considering “Dr” sugar is reserve sugar, the provisions on
verification/shipping schedules shall not apply, until otherwise
determined in a separate Sugar Order.

SECTION 5. Effectivity. This Order shall take effect starting Production Week Ending February 8, 2009.

SECTION 6. Sugar Orders not contrary hereto
shall remain in full force and effect while sugar orders, circular
letters and such other issuances inconsistent or contrary hereto are
hereby revoked, modified or amended accordingly.

Adopted: 05 Feb. 2009

BY AUTHORITY OF THE SUGAR BOARD

(SGD.) RAFAEL L. COSCOLLUELA
Administrator