WITH the acceleration towards privatisation of several state entities and free trade there has been speculation in various quarters that Guyana's sugar industry, part of the backbone of the economy, would also be privatised and that there will be closure of several estates, especially in Demerara.

It is true that there has been some insistence by international financial institutions to privatise the sugar industry in order to secure financing which is required to restructure the sector to reduce its production costs so as to make Guyana's sugar more competitive on the international market.

However, the Government, realising the strategic importance of the sugar industry to the national economy, has stood firmly against privatisation.

One of the first steps private entrepreneurs take in their cost cutting exercise is to reduce employment costs, which ultimately means retrenching workers and closing a number of entities.

Such a move in Guyana's context would have severe social and economic consequences for its people, especially sugar workers and their families.

This will definitely run counter to the current poverty alleviation strategy being implemented by the Government with the help of the major international financial institutions.

It was therefore heartening news when in rebuffing certain sections of the media for misleading reports on the issue, President Bharrat Jagdeo emphatically declared that privatisation, closure of estates and retrenchment are not on the cards.

The President made it clear that in its quest for funding to restructure the sugar industry, the administration will not compromise the interests of the sugar workers.

The sugar industry, the single largest employer with more than 20,000 workers, and the largest foreign exchange earner, has to be handled in the best interests of this country.

The Government and the management team must be commended for moving quickly to restructure the industry because the end of the preferential markets sugar has long enjoyed is not far away.

It is imperative therefore, that such a strategic industry in the economy be equipped to meet the stringent demands of free market competition.

Over the last eight years, the industry while state-owned but under the private management of Booker/Tate, has been increasing output through improved methods of production and management.

The major difficulty is to reduce the cost of production, which is being tackled at several levels.

Unfortunately, some sections of the society in their narrow and selfish pursuits have been attempting to sow confusion among sugar workers by several tactics, including spreading rumours about retrenchment, privatisation and other issues.

To use a matter of such crucial national importance for narrow ends is grossly irresponsible.

Sugar is too important to the country and to too many people to be used as a political hobby horse by any group.