A new order allocating 15 percent of the country's sugar production as C or reserve sugar took effect yesterday to protect domestic farmgate prices as production nears its peak, Sugar Regulatory Administrator Rafael Cocolluela announced.

Production is already exceeding demand, we are moving towards its peak, so it is time to put sugar in reserve, he said.

Sugar Order 1B allocates the country's sugar at 6 percent for A (US Quota), 75 percent – B (domestic market), 15 percent – C (reserve) and 4 percent – D (world market).

Sugar Board Member Rafael Golez said the country's production for this crop year was initially estimated at 2.3 million metric tons and the new estimate is now 2.8 million metric tons.

We are approaching the peak of sugar production for this crop year with all the mills now open so the new sugar order had to be issued to protect domestic farmgate prices now that the supply is bigger than the demand, he said.

Sugar Order 1-B reduces sugar allocated for the domestic market by 14 percent, and the world market allocation by 1 percent

Sugar Order No.1-A issued in October had released more sugar into the domestic market to address the rising retail prices triggered by a tight supply.

The October order set the country's sugar allocation at 89 percent – B (domestic market), 6 percent – A ( US sugar quota) and 5 percent – D (world market).*CPG

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