A welcome reform

THE Punjab government’s decision to abolish the corruption-ridden and inefficient food department, and replace it with the Punjab Price Control & Commodities Management Department is an important reform. The objective of this initiative is to help alleviate the unbearable burden of food prices on middle-class households in the province, which have been witnessing soaring food inflation over the last couple of years. The new department has been vested with a vast mandate to effectively regulate the supply and demand of politically important commodities — wheat, flour and sugar — control food prices, and supervise related industries, particularly the flour and sugar mills. The reform brings various agencies performing such functions as food quality assurance, agriculture marketing, wheat procurement, storage and sales, and consumer rights protection, etc, under one roof. The department will assess potential food shortages in the province, and take timely measures to ensure a steady food supply. In addition, it will regulate interprovincial trade of essential commodities and formulate policies accordingly. Briefly, centralising all manner of food-related issues previously handled by multiple line departments, regulatory agencies and others, will help the department boost food security in Punjab, anticipate shortages and ensure supplies in the market, as well as control prices and profiteering. In order to perform these functions, the department will have the power to propose and formulate legislation and policies. This is the kind of reform that other provinces should also consider to not only centralise their food policy and regulations but also to make it easier for the private sector to comply with the rules.
However, while the restructuring of food-related regulatory functions is welcome, there are concerns about the bureaucracy’s capacity to execute the tasks assigned to the new department. There are instances where, owing to obstacles created by bureaucracy, restructuring has failed to deliver. Take the example of the FBR. Its performance has actually deteriorated ever since it was restructured with the aim of cleansing it of red tape and corruption, and boosting its efficiency for better tax collection. In order for the newly created department to work efficiently, it is crucial that the provincial authorities study what went wrong with the reform efforts at the FBR and elsewhere to make sure that those mistakes are not repeated.
Published in Dawn, October 9th, 2024