DAVAO CITY – Sugar Regulatory Administrator Ma. Regina Bautista-Martin yesterday said she has issued Sugar Order No. 1 series of 2011-2012 that sets sugar allocations for the new crop year.

The order states that sugar production for the Crop Year 2011-2012 (Sept. 1, 2011 to Aug.  31, 2012) is expected to be 2.4 million metric tons and should be quedanned by the sugar mills in the following percentages: “A” or U.S. Quota Sugar – 8 percent, “B” or Domestic Sugar – 72 percent and “D” or World Market Sugar – 20 percent.

"In order to promote the effective merchandising of sugar in the domestic, U.S. and World markets, it is necessary to allocate the Crop Year 2011-2012 sugar production to such proportions as to place those engaged in the sugar industry on a basis of economic viability," she said.

There is also a need to prepare for a possible surplus generated from a higher domestic production, and such preparation calls for setting aside an allocation which will absorb the projected surplus, which if not disposed of to market/s other than the domestic market, can adversely affect the viability of the sugar industry, Martin added.

The SRA will undertake periodic assessments of the 2011-2012 sugar production and withdrawals and on the basis of such assessment, it may adjust from time to time the percentage distribution of the different classes of sugar and/or take the necessary action to address the situation, she added.

Martin has also issued Sugar Order No. 2 Series of 2011-2012 setting the rules for filing up the US quota for 2011-2012.

She said the United States of America has allocated the Philippines an initial quota of 138,827 metric tons for 2011-2012.

The "first come-first served" policy of allocating the US quays among traders and exporters will apply, Martin said in the order.*CPG

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