RULES TO IMPLEMENT SUGAR ORDER NO. 17 (AMENDED): MEASURES TO ENSURE STABLE SUPPLY OF SUGAR NATIONWIDE

For the information and guidance of all concerned, the following
rules and regulations are hereby issued to implement the provisions of
Sugar Order No. 17 (Amended), Series of 1989-1990 dated August 23, 1990.

SECTION 1.       The exercise of the option under Sugar
Order No. 17 (Amended), Series of 1989-1990, dated August 23, 1990 shall
be made on or before September 7, 1990 by the sugar producer (miller or
planter) upon surrender of the corresponding “D” sugar quedans to the
SRA representative in the mill company concerned and in the case of SRA
registered sugar traders upon application to SRA under Section 3 hereof.

SECTION 2.       The sugar producer who opted under Section
1(a) of Sugar Order No. 17 (Amended) shall undertake to replace the same
with his 1990-1991 “B”/domestic sugar not later than one month after
the end of the milling in his mill district, said undertaking to be
written, printed or rubber-stamped at the back of said “D” quedans and
signed by the sugar producer as follows:

“I undertake to replace this “D” sugar with an equal
quantity of my/our 1990-1991 “B”/domestic not later than one month after
the end of milling in this district.”

Signature __________

Name of Sugar Producer __________

SECTION 3.       (a) The sugar trader (registered with the
Sugar Regulatory Administration) opting under Section (b) of Sugar Order
No. 17 (Amended) shall undertake to execute Form “A”.  To guarantee
compliance with Sugar Order No. 17 (Amended), said trader shall deposit
with the National Council of Sugar Producers (NCSP), as Trustee for the
sugar producers, the amount of Eighty Pesos (P80.00) for every picul of
“D” applied for to be released as “B” sugar.

(b)     The sugar trader shall submit the 1989-1990 “D” quedans,
supported by the corresponding NCSP receipt of deposit and his written
undertaking (Form “A”), to the Sugar Regulatory Administration for the
issuance of appropriate clearance to withdraw the “D” sugar from the
mill company.  The “D” quedans shall be stamped:

“Authorized for withdrawal “B” per SRA Sugar Order No. 17 (Amended).”

SECTION 4.       The aforesaid deposit of P80.00 per picul
shall be forfeited to the NCSP upon failure of the sugar trader to
comply with his undertaking or upon his waiver thereof.

SECTION 5.       Any deposit forfeited or waived by the
sugar traders shall be held by the NCSP in trust for the benefit of the
sugar producers who were disadvantaged by the operation of Sugar Order
No. 17 (Amended).

SECTION 6.       Any 1989-1990 “D” sugar which in not
withdrawn as “B” sugar under the provisions of Sugar Order No. 17
(Amended) on or before October 31, 1990 shall revert to sugar for export
to the world market, and the cash bond shall be forfeited..

SECTION 7.       The mill company is hereby required by the
SRA to report on the “D” sugar withdrawn under the provisions of Sugar
Order No. 17 (Amended).

Adopted: 23 August 1990

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