SUGAR REGULATORY ADMINISTRATION

Estimated sugar production in crop year 2009-2010 is 2.16 million metric tons and the country’s ending inventory of domestic sugar is back to a seasonably normal level.

Depleted world market supply and drop in world sugar production among the world’s biggest sugar - producing countries have led to high world prices and similar price spikes in the US market which called for the creation of “C-1” strategic reserve classification to take advantage of possible export opportunities of Philippine sugar if local supply / demand conditions allow for the export of any excess.

SRA also allocated an adequate volume of “D” sugar for qualified food processor-exporters / CBWs in order to promote the growth of this vital sector of the Philippine economy.

To ensure adequate domestic sugar supply while maintaining a strategic balance conducive to a stable and viable market environment and to enable the timely and effective merchandising of Philippine sugar, the following sugar allocations at the start of crop year 2009-2010 were promulgated by the SRA Sugar Board:

“A” or U.S. Quota Sugar                 -     4  %
“B” or Domestic Sugar                    -   90 %
“C-1” or Strategic Reserve Sugar  -    4 %
“D” or World Market Sugar           -    2 %