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[ SRA ORDER NO. 5, November 23, 1998 ]


WHEREAS, the 1% allocation of Crop Year 1998-1999 production into "B-1" or Food Processors'/Exporters' sugar would entail a lot of time and effort for exporters of sugar based products to liquidate nationwide significant volume of said sugar;

WHEREAS, it is to the best interest of the sugar producers to set a liquidation price for the "B-1" sugar at a level representing their average cost of production;

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

SECTION 1.       The "B" or Domestic Sugar quedan-permits for Crop Year 1998-1999 shall be used as "B-1" quedan-permits to cover every week-ending's production of "B-1" or Food Processors'/Exporters' sugar and shall be issued after the said "B" quedan-permits have been properly stamped as "B-1" and validated by the Sugar Production and Regulation Officers (SPROs) assigned at the millsites.

Mill companies shall, on a weekly basis, issue consolidated "B-1" quedan-permits to planters through their respective planters' association/cooperatives, attached thereto the list of planters and their corresponding volumes of "B-1" sugar.

At the option of non-affiliated planters, quedanning of their "B-1" sugar shall be joined with those of planters' associations/cooperatives.

SECTION 2.       Failure on the part of the food processors/exporters to procure the "B-1" sugar quedan-permits within forty five (45) days from the date of production (week-ending date) of the corresponding sugar as indicated therein, shall result in the reclassification of the "B-1" quedan-permits into "B" or Domestic sugar.

However, on failure by the producers to submit immediately, within fifteen (15) days from date of issuance of the quedans, the photocopies of their "B-1" quedan-permits to the SRA, said "B-1" quedans although eligible for reclassification, having matured after forty five (45) days from the date of production (week-ending date) of the corresponding sugar, shall remain as "B-1" or Food Processors'/Exporters' sugar.

SECTION 3.       The liquidation price of the "B-1" sugar shall be P 600.00/LKg-Bag.

SECTION 4.       The "B-1" quedan-permits of the current Crop Year 1998-1999 shall be allowed for swapping with the "B" or Domestic quedan-permits.

SECTION 5.       For monitoring and control purposes, all mill companies are hereby required to submit to the Production Control and Regulation Office (PCRO), SRA, Quezon City (Fax No. 924-40-34) copies of the "B-1" quedans they issued, thru the Sugar Production and Regulation Officers assigned thereat.

SECTION 6.       A Circular Letter shall be issued as implementing guidelines of this Order.

SECTION 7.       This Sugar Order shall take effect 01 December 1998, in which case, all "B-1" sugar produced from week-ending 06 September 1998 to week-ending 29 November 1998 shall have as 06 December 1998 as its date of production for purposes of determining the maturity date forty five (45) days of which the corresponding "B-1" quedan-permits may be reclassified as "B" or Domestic sugar.

SECTION 8.       Provisions of Sugar Orders, Circular Letters and/or other rules and regulations contrary to or inconsistent with this Sugar Order, are hereby amended, modified or revoked accordingly.

Adopted: 23 Nov. 1998


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