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WHEREAS, Executive Order No. 18, dated 28 May 1986, 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 Eight Hundred Thousand Metric Tons (1,800,000 M.T) this Crop Year 1998-99;

WHEREAS, the United States has allocated for the Philippines a Sugar Quota for Quota Year 1998-99, said quota to be officially announced later;

WHEREAS, there is also, a need to allocate portion of the Crop Year 1998-99 production for the Philippine Food Processors' and Exporters' Organization (PHILFOODEX) in order to provide cheaper sugar to PHILFOODEX to enable them to remain competitive in the world Market;

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 1998-99 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. Production and Classes of Sugar — Sugar production for the Crop Year 1998-99 (September 1,1998 to August 31, 1999 is estimated at 1,700,000 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	12%
"B" or Domestic Sugar	87%
"B-1" or Food Processors’/ Exporters' Sugar	1% _____
	100%

SECTION 2. (a) As a general rule, except hereinafter provided, sugar and molasses production for the CY 1998-99 shall be issued by mill companies weekly sugar quedan-permits/molasses storage certificates in the name of the individual planter or mill company.

(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/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. A Circular Letter shall be issued by the SRA Administrator to serve as implementing guidelines in the liquidation, withdrawal, disposition of the "B-1" of Food Processors’/Exporters’ Sugar.

SECTION 4. Periodic Assessments, Percentage Adjustment — The SRA shall undertake periodic assessment of the 1998-99 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 5. Revalidation of Unused Quedan Permit Forms — Pursuant to Section 6, Sugar Order No 1, Series of 1995-96, dated 01 September 1995, it is hereby reiterated, that, beginning this Crop year 1998-99, and thereafter, all unused sugar quedan-permit forms of the previous crop year will no longer be allowed for revalidation.

SECTION 6. Repealing Clause — All provisions of Sugar Orders, Circular Letters, rules and regulations inconsistent with or contrary to this Sugar are hereby amended, modified, or revoked accordingly.

Adopted: 28 Aug. 1998

(SGD.) NICOLAS A. ALONSO
Administrator