Preamble
WHEREAS, the sugar industry contributes a very sizeable amount in the foreign exchange earnings of the country during the past years prompting the government to encourage more production of sugarcane and the establishment of new sugar mills to further increase production of sugar to supply the traditional as well as the new foreign markets; WHEREAS, the current cost of sugar mills, machinery and equipment has multiplied to about two and a half times of the cost of sugar mills in the late 1960's and early 1970's due to worldwide inflation which correspondingly increased the financial requirements of the sugar industry; WHEREAS, all the new sugar mills are being financed by government financial institutions and, therefore, in the event of collapse of its operations by reason of financial problems resulting from high cost of acquisition of the mill, the said government financial institutions will ultimately suffer the loss; WHEREAS, there is a need to provide government assistance and incentive in the production and processing of sugar in view of the present uncertain and fluid economic conditions confronting the sugar industry which undoubtedly will affect adversely the future foreign exchange earning of the country to the prejudice of the national economy; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order: