SUGAR POLICY FOR CROP YEAR 2000-2001

WHEREAS, Executive Order No. 18, dated 28 May 1985, 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 a level reasonably profitable to the producers and
fair to consumers”;

WHEREAS, domestic demand is estimated to be at One Million Nine
Hundred Thousand Metric Tons (1,900,000 MT) this Crop Year 2000-2001;

WHEREAS, 13.5% of the total importation of the United States is
allocated for the Philippines for Quota Year 2000-2001, said quota to be
officially announced later;

WHEREAS, in order to promote the effective merchandising of sugar
and its by-products in the domestic and foreign markets, it will be
necessary to allocate the 2000-2001 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 .       Classes of Sugar and Quedanning Percentages.
— Sugar production for the Crop Year 2000-2001 (September 01, 2000 to
August 31, 2001) is estimated at 1,720,000 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	8%
“B” or Domestic Sugar	92%
	100%

SECTION 2.       Issuance of Sugar Quedan-Permits/Molasses Storage Certificates.
— (a) As a general rule, except as hereinafter provided, sugar and
molasses production for the Crop Year 2000-2001 mill companies shall
issue weekly sugar quedan-permits/molasses storage certificates to cover
individual planter or mill company share in the percentage provided in
Section 1.

(b)            In cases, 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 for any class of sugar/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 2000-2001 sugar
production and on the basis of such assessment, it shall adjust from
time to time the percentage distribution of the different classes of
sugar.

SECTION 4 .       Non-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, for Crop Year
2000-2001, and thereafter, all unused sugar quedan-permit forms of the
previous crop year will 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: 24 Aug. 2000

(SGD.) NICOLAS A. ALONSO
Administrator