Home ›› 12 Sep 2022 ›› Front
Amid soaring inflation and ongoing economic crisis, the government approved a Tk 9,840 crore procurement plan to buy eight essential commodities, which will be sold at subsidised prices to one crore low-income families through the Trading Corporation of Bangladesh (TCB).
The figure is 350 per cent higher compared to Tk2,183 crore spent in the last fiscal to feed the lower income segments.
In a letter sent to the Finance Ministry on September 6, 2022, the commerce ministry informed about the procurement plan in detail in line with the approval of Cabinet Committee on Public Purchase.
As per the procurement plans, of the total amount, Tk 5,232 crore – the highest – would be used to buy 2,61,600 tonnes of edible oil.
The price of edible oil in the country experienced several hikes due to the price rise in the global market as a fallout of the Russia-Ukraine war, affecting the purchase decision.
Rise in prices in the global market has exacerbated the country’s inflation. Bangladesh recorded 7.48 per cent inflation in July. While food inflation stood at 8.19 per cent.
The resulting commodity price hike has increased financial stress on low-income people. Considering these issues, the government increased the supply of products at affordable prices through TCB during the pandemic.
The government offered one crore family cards for people belonging to the low income segments in March last year.
As per the plan, the government through TCB will buy 1,38,000 tonnes of sugar, 2,76,000 tonnes of lentils, 12,000 tonnes of chickpeas, 1,560 tonnes of dates, 24,000 tonnes of onion, 1,200 tonnes of garlic and 1,200 tonnes of ginger in the current fiscal year.
This year, the TCB is buying ginger and garlic, even though these two products were not bought or distributed previously.
The government has planned to supply a total of 5.04 lakh tonnes or 250 per cent more products compared to the last financial year to keep the commodity market stable. As a result, the TCB will supply three times more products to the market than last year.
Experts for more cards, proper distribution
Former commerce secretary and Consumers Association of Bangladesh (CAB) President Ghulam Rahman told The Business Post that the TCB’s product supply needs to be increased to affect market prices.
“It is true that people with low income will benefit as the quantity of commodities increases. But it does not affect the market conditions because the products are bought from local markets and millers. It does not increase the supply of goods in the market. Ultimately, buyers are not getting any benefits,” he said.
He said direct imports and supply of the TCB would have been better. It would have positively impacted the overall price situation and price control would have been easier. It would benefit consumers as well.
Several global factors have acted to bring about the unusual rise in the commodity market lately. These factors include the coronavirus pandemic and consequently the loss of employment of many people, the war between Russia and the consequent rise of commodities in the global market, the abnormal rise of dollar price, higher shipping rates, etc.
This is why a plan has been taken to ensure the supply of goods to these families through cards. As a result, the Cabinet Committee on Purchase has approved the purchase of TCB products.
TCB Dhaka Office Head and Spokesperson Humayun Kabir told The Business Post that the supply of products has been increased manifold to ensure affordable prices for low-income people.
“Before Covid-19, we were supplying products which were 1 to 2 per cent of the market demand. Since the pandemic started, till February 2022, the supply of the product has increased to 10 to 12 per cent of the demand,” he said.
Since March, 25 to 27 per cent of the market demand has been supplied. In some cases, TCB is providing up to 30 per cent of products as per need, he also added.
He said that so far in the current fiscal year, around 50,000 tonnes of commodities are being supplied every month. After the introduction of the TCB card at the end of the last financial year, an average of 28,000 to 30,000 tonnes of commodities have been supplied.
The plan to increase the supply of goods at affordable prices is a timely move by the government, Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said while talking to The Business Post.
“However, it has to be done through the proper process, so that there is transparency and accountability. It should ensure that low-income people get TCB cards. This way, the benefit of selling affordable products can be achieved,” he added.
A delegation will soon go for a field survey to ensure that TCB card products reach the right people, Ministry of Commerce Additional Secretary (IIT cell) A K M Ali Ahad Khan informed The Business Post.
“If there is any irregularity anywhere in the country, action will be taken against it. Besides, the district administration and upazila administration in charge of the card will monitor the situation,” Ali Ahad Khan said.
Mentioning the list of people who got incentives packages during the pandemic, he said that a similar list should be made so low-income people can get the full benefit of this system.
Besides providing affordable products to low-income people, efforts are being made to influence the market by TCB. Discussions are going on about importing from different countries including Argentina, Brazil and Canada. A delegation is scheduled to visit Brazil and Argentina to review the matter, he informed.
The Ministry of Agriculture has taken up a project to properly preserve products like onion and garlic produced in the country with the proper technology so that these do not get spoiled, the Additional Secretary informed.
“There is a plan to sell these products stored from farmers during the season through TCB. This initiative will play a big role in keeping the market stable,” he added.
