The Department of Environment and Natural Resources has temporarily lifted a cease-and-desist order imposed on Victorias Milling Co. for alleged pollution violations, that will allow VMC to start milling operations on schedule.

Milling for the new crop year starts on August 27 at VMC, its president, Abelardo Bugay, told the DAILY STAR yesterday. VMC, the largest sugar refinery in the country, produces about 6 million bags of refined sugar per annum, Sugar Regulatory Administrator James Ledesma said.

VMC is also scheduled to effect the retrenchment of some managerial and supervisory personnel effective August 31, Bugay added.

Bugay said the number of those to be retrenched by August 31 was not available yet but they are working to reduce their current workforce of 1,173 to between 900 to 950.

We need to work on making the mill leaner and more cost-efficient because the North American Free Trade Agreement and the ASEAN Free Trade Agreement take effect in 2010 and tariffs on imported sugar will be reduced to 0 to 3 percent, Bugay said.

This will mean a drop in sugar prices to a low of P600 per 50 kilobag, he said. Domestic sugar has lately been selling above P1,000 per bag.

Meanwhile, Bugay said the DENR, through its Pollution Adjudication Board, issued a Temporary Lifting Order on the CDO it imposed on VMC after the mill submitted a comprehensive pollution control program.

Environment Secretary Angelo Reyes had ordered VMC to cease-and-desist from operating on June 21 until it addressed its air and water pollution violations.

The mill put up a surety bond of P21 million that will be forfeited in favor of the government if the mill fails to effect what its stated in the comprehensive pollution control program, Bugay said.*CPG

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