LAHORE, April 24: The Punjab Food Department has started preparing itself for the ‘inevitable’, the conversion (of the department) into a corporation. Under a plan endorsed by the federal government and sponsored by donors, the Punjab Food Corporation will be run on commercial lines by an independent board of directors.

Now under pressure from donors who are going to appoint a consultant for the purpose, sources say the department has started preparing itself for the change, at least theoretically.

Under the plan, the department may even partially outsource procuring and storage of around 500,000 tons of wheat this year if the crop size turns out to be according to expectation.

“A conceptual exercise has already begun and the Food Directorate has been told to prepare a summary along the given guidelines,” sources say.

According to the guidelines, PFC will be an autonomous and commercial set-up to be run by an independent board of directors.

The procurement and storage will go to the private sector. “That is how the new corporation will ensure support price and build its strategic and operational reserves.”

A maximum number of employees will be absorbed from the existing set-up whereas rest of the recruitment will be made through the Punjab Public Service Commission.

According to a departmental ‘plan of action,’ six to 12 months are required to prepare the legal framework — procedures, acts, and rules — for the change. It will take another nine to 12 months to totally revamp the department for establishing the PFC.

The guidelines say that since the sasta atta scheme has failed to make any impact, the corporation will launch a food stamp scheme.

The department plans to pull itself out of the business because the federal government is committed to do away with food departments and let the private sector handle the issue, says an official of the Food Department.

The Punjab government, on its part, resisted the attempt as long as wheat was in short supply. “High hopes for the new crop have changed its mind and as such it may outsource a part of its responsibilities this year.”

Sources say the department wants to restrict itself only to maintaining strategic reserves through the private sector. Each year, the department will issue tenders for the required quantity of wheat. The successful bidders will be asked to purchase wheat and store it till date the department actually requires it to issue it to mills.

The bid price will include all incidental charges and the department will only get wheat when it needs it to meet food security. It will free the department from deploying a large number of staff in each district and maintain more than one stores as well. The department will maintain only a few stores at some strategic locations.

The millers will also be able to purchase wheat from private parties.

The department will only ensure presence of a certain quantity of wheat in the country under the new arrangement.