Govt to increase subsidy instead of hiking TCB product prices

The government has decided to increase subsidies for edible oil and lentils instead of putting pressure on the low-income people by hiking their prices.

Earlier, in the wake of rising commodity prices amid the Ukraine-Russia war, the Trading Corporation of Bangladesh (TCB) had proposed hiking the prices of edible oil and lentils before selling the products among 1 crore cardholding families. 

Now, poor consumers will get soybean oil, lentils and sugar from TCB trucks before Eid-ul-Azha at prices as before Eid-ul-Fitr.

To reduce the subsidy, the state-run agency had proposed an increase in the prices of soybean oil from Tk110 to Tk130 per litre and lentils from Tk65 to Tk75 per kg.

Brigadier General Md Ariful Hasan, chairman of TCB, told The Business Standard that oil, sugar and lentils would be sold at previous prices since the commerce ministry had not approved the proposal.

TCB products will be sold across the country from 22 June, with the agency completing sales among 1 crore family card-holders by 5 July.

The TCB could not procure soybean oil on time even though it was supposed to sell it during 16-30 June.

The corporation had told the commerce ministry that the prices of various essential commodities had also gone up in the domestic market due to the rise in prices in the international market.

As the difference between the current market price and the consumer price of TCB is huge, the amount of government subsidy has increased and the possibility of sales of TCB products illegally through dealers and consumers has become a threat. For this reason, it is necessary to set a new price in line with the market price, it added.

Commerce ministry officials say the poor are already under pressure as prices of most essential commodities have gone up in the market. In this situation, if the prices of TCB products are increased, there may arise discontent among consumers. That is why the government did not consider the proposal to increase prices.

TCB will distribute oil, sugar and lentils at subsidised prices among one crore families before Eid-ul-Azha. At present, a litre of bottled soybean oil costs Tk205, whereas TCB will sell it at Tk110. In other words, TCB is selling oil at Tk95 less than the market price.

However, before Eid-ul-Fitr, when TCB sold oil at Tk110 per litre, the purchase price of it for TCB was Tk168. In other words, the subsidy by TCB for every litre of oil has increased by Tk27 in two months.

At present, consumers have to pay Tk130 to buy one kg of local lentils from the market. TCB will sell the item at Tk65; thus the government is selling the product at Tk65 less than the market price. One kg of sugar is being sold at Tk85 in the market. But TCB will sell it at Tk55, which is Tk30 less than the market price.

Before the forthcoming Eid-ul-Azha, two litres of soybean oil, 2 kg of lentils and 1 kg of sugar will be sold to each of one crore families. As such, a family will be able to save Tk350 in buying these three products compared to the market prices.

According to TCB sources, the agency needs two crore litres of soybean oil, 20,000 tonnes of lentils and 10,000 tonnes of sugar to sell these products among one crore households.

The TCB Chairman said, "We have taken preparations to sell the products from 22 June to 5 July and are moving forward accordingly."