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Sugar Industry Situationer

A presentation by AdministratorJames C. Ledesma

Sugar Regulatory Administration

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Highlights of Sugar Productionas of January 22, 2006

(3.58)1,006,835969,871Prod - Raw

(8.58)424,043387,655W/drawals

0.57351,105353,118Prod-Refined

1.84611,811623,075W/drawals

% Inc/DecCY 2004-05CY 2005-06

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Stock Balance Positionas of January 22, 2006

605,212

103,733

501,479

Metric tons

12,104,240Total

2,074,660Refined Sugar

10,029,580Raw Sugar

50 Kg Bags

* Average Raw Monthly Consumption: 160,000 mt

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Production and Withdrawal for

Week Ending January 22, 2006

22,197 mtRefined Withdrawals

32,447 mtRefined Production

47,997 mtWithdrawals

93,114 mtRaw Production

*Production almost double consumption at this time.

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World Market Prices of Sugar

Spot Market in US cent/lb. for Raw and US $/metric tons for Refined

428.0017.80January 26

428.10*18.17*January 31

385.0016.26January 20379.7015.58January 19

359.0014.77January 12

RefinedRaw

*Estimated Landed Cost per kg. P24.60 raw and P28.70 refined

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Graph of World Market Prices of Sugar(US $/Metric Tons)

300

350

400

450

1/12/06

1/1

4/06

1/16/06

1/18/06

1/20/06

1/22/06

1/2

4/06

1/26/06

Raw Sugar

Refined Sugar

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Refined Sugar Supply/Demand

ProjectionStarting Inventory 2,872,429

Add: Projected Production 22,179,611

25,052,040Less: Projected Withdrawal 22,686,757

Ending Balance 2,365,283 bagsor

118,264 MT

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Import/Export Counter Trade

Program Export 50,000 mt additional US quota.

Import 50,000 mt refined sugar through the

Philippine International Trading Corporation(PITC) as replenishment at 1:1 ratio.

Imports must be granted Duty Free privilege.

Program has been endorsed by the Sugar

Industry Stakeholders.

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Parallel Response Program

Proposal SRA to classify B2 sugar at 0.5% of production

every week from hereon only for NFAprocurement. This will be around 100,000 bags.

NFA to buy B2 sugar at a fixed price ofP950/bag (current levels now aboveP1,200/bag).

NFA to refine said sugar and sell through itsoutlets/rolling stores at a target price of belowP30.00/kg.

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THANK YOU

AND HAVE A SWEET DAY!