Carer in crisis: How TCB guards the food insecure
Delays in loading and unloading also often resulted in trucks arriving late, and some consumers may not have been able to visit the truck at the specified time. However, with the establishment of permanent shops by TCB dealers, these inconveniences have been eliminated.
Md Jashimuddin, a Trading Corporation of Bangladesh (TCB) cardholder, had just bought his monthly groceries at a subsidised rate in the Dhaka North City Corporation's Ward-24.
He seemed satisfied with his purchases, which had been light on the wallet despite high inflation plaguing the country.
"Earlier, the trucks did not come on time. We had to stand in queues and hurry. There were many times when I could not buy anything even after queuing up for hours. But now the dealer shop is next to my house and items can be bought anytime with the card," he said, showing his TCB card.
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"The dealer scans the card when I make a purchase so there's no chance of exploiting the system," he said.
Indeed, "government of the people", a common refrain, while seemingly redundant, is displayed the most in the works of the Trading Corporation of Bangladesh.
While the corporation has won plaudits for bringing ease to the lives of low-income earners, it hasn't rested on its laurels.
It has looked into the complaints of the people, the ghosts in the system, and then gone on to fix it, while expanding its services.
Brigadier General Md Ariful Hassan, chairman of TCB, said capacity was increased as needed.
"To achieve this, the TCB has implemented changes in its sales management. Instead of truck sales, specific sales centres have been established throughout the country, including Dhaka. These centres offer all the necessary products, and beneficiaries can purchase them at any time."
He said it becomes easier to plan and organise when the number of beneficiaries is determined.
"Additionally, we received support from local government and public representatives who also monitor our activities. They helped us with enlisting people for the ration cards. This has played an important role in our capacity building efforts."
With sales centres, people no longer have to queue up before trucks. This has come as a saving grace for many, especially the elderly or those with health complications.
Renu Ara, a TCB card holder of Ward-32, told TBS, "It was very difficult for me to stand in line for hours. Now that there is a shop, I can go when I need to. Sometimes the trucks came when I didn't have money, so I couldn't make the needed purchase. This is also no longer the problem."
Delays in loading and unloading also often resulted in trucks arriving late, and some consumers may not have been able to visit the truck at the specified time. However, with the establishment of permanent shops by TCB dealers, these inconveniences have been eliminated.
People can now visit the shops at their convenience and purchase products using a card, leading to a more organised process and less chaos.
The TCB has been selling goods below market price to one crore cardholders through its centres since 2022.
Earlier, it usually operates during the month of Ramadan, when traders usually hike prices of essentials in arbitrary manner.
During Covid-19, it began operating four times a year. Then the government expanded the services throughout the year.
The TCB functions almost as a vanguard against price shocks which would eat into the meagre income of many people.
It charges little for much, stabilising the market by increasing supply and selling products at subsidised rates across the country.
The TCB came to prominence at the height of the Covid-19 pandemic. With many jobs lost and incomes reduced, the corporation played the dual role of game-changer and saviour for millions.
Its role is still crucial, especially amid the current economic situation.
The severity of the cost of living shock is evident at the rice trucks of the Open Market Sales (OMS) run by the Food Department in Dhaka, where long queues of people clearly suffering from hunger can be seen.
A study by the Consumer Association of Bangladesh (CAB) conducted in Dhaka Metropolitan revealed that the cost of living has risen by more than 11% compared to January 2022.
Amid this steep rise in inflationary pressure, the TCB's capacity has been increased to alleviate the worries of the people, according to officials concerned.
With each crisis, the TCB's role has been further solidified and shaped.
But its role in an emergency is nothing new. The TCB in its earliest iteration was also a child born out of and in a crisis.
A child of a crisis
After gaining independence through the 1971 war, Bangladesh had to take stock of what was left in the war-torn country. The newly emergent country's roads, air and sea ports had all been rendered unusable, ravaged by war.
The economy was under great strains, the paramount need being to replenish supplies of consumer goods, construction materials and industrial raw materials on an urgent basis.
For consumer goods, fair prices were also required. In the trying period of 1972, the TCB was established in January.
Back then, the corporation was engaged in importing industrial raw materials and exporting readymade garments and jute.
As time went by, the economy stabilised and businesses took over most of the trade. The TCB's role was reimagined: this time as an entity which builds up buffer stocks of daily necessities and supplies those in the time of need.
Every Ramadan, the TCB would begin selling essentials at a very low cost. But after the pandemic hit, the TCB renewed efforts to supply goods on a more regular basis.
Now, with the economic recession badly affecting people's income, the TCB has once again come to the rescue.
According to data from the Ministry of Commerce, there is an annual demand for 20 lakh tonnes of edible oil and sugar.
Apart from this, the demand for lentils is six lakh tonnes.
The TCB aims to sell 2.40 lakh tonnes – 12% of demand – of edible oil in the 2022-23 fiscal year.
Besides, it will also sell 1.2 lakh tonnes of sugar and 2.4 lakh tonnes of lentils.
Furthermore, it will sell a thousand tonnes of chickpea and 1,300 tonnes of date.
How the TCB works
The TCB purchases products from both local and international markets, with soybean oil being a product it has been buying from local marketing companies for years.
Recently, the Cabinet Committee on Public Procurement approved the purchase of 1.10 crore tonnes of soybean oil and 4,000 tonnes of lentils. The oil will come from Meghna Group and the lentils from a company in Turkey.
The soybean oil is being bought at Tk176.88 per litre and the lentils at Tk91.60 per kg.
The TCB will sell the oil at Tk110 per litre, with the loss covered by a subsidy from the finance ministry.
As TCB has expanded its product offerings beyond Ramadan, the subsidy amount has increased significantly. In FY 2019-20, TCB's deficit stood at Tk500 crore, which has now increased to over Tk1,000 crore. The subsidy amount exceeded Tk1,158 crore in FY 2021-22.
The approved budget for the financial year 2022-23 estimates the subsidy amount to be Tk1,262 crore.
According to TCB data, there are currently 4,728 dealers across the country, whereas in 2009, there were only 187 dealers.
The TCB dealers receive a commission of Tk5 on each product, which covers the cost of loading, unloading, and transportation of goods.
To increase its emergency stock capacity, TCB is constructing modern warehouses in three locations – Chattogram, Sylhet and Rangpur – at a cost of Tk28 crore.
Currently, TCB has an emergency storage capacity of 30,000-35,000 thousand tonnes through permanent and rental warehouses.
In addition, TCB has recently established a total of 12 regional offices/camp offices, including four new camp offices, to cover the entire country.
At present, all TCB activities are being conducted from regional offices or camp offices in each department.
Challenges still there
The primary challenge faced by TCB is a lack of working capital. The company has repeatedly requested an emergency capital of Tk1,000 crore, but it has yet to be granted.
Consequently, the company has to borrow from banks at an interest rate of 9%, which adds to its costs.
The government acts as a guarantor for TCB's bank loans, providing an advantage for the company. However, suppliers have to bear a 2% advance income tax on TCB product purchases, which they add to the product's price, causing an increase in the purchase price.
Moreover, TCB's manual beneficiary card issuance is another area of concern. TCB Chairman Brig Gen Md Ariful Hassan believes that digitising the card system will enhance transparency.
