No rice for TCB family cardholders in Jan amid supply shortage

The hardship of low-income family cardholders is set to worsen as the Trading Corporation of Bangladesh (TCB) has excluded rice from its list of subsidised food items for January due to a supply shortage from the food ministry amid soaring prices.

Additionally, at least 37 lakh cardholders, out of the total 1 crore beneficiary families, will not receive products from the state-run trading enterprise this month due to the introduction of smart family cards replacing handwritten ones, according to officials.

In a press release today, TCB announced that edible oil, pulses, and sugar will be available at affordable prices for family cardholders this month.

"A cardholder will receive two litres of edible oil, two kilograms of lentils, and one kilogram of sugar," the release stated, adding that the commerce adviser will inaugurate the January sales today at Begunbari in the capital.

To cushion inflation-pressed low-income families, 5kg of rice has been provided to each TCB family cardholder at Tk30 per kilogram since July 2023, sourced from the Directorate General of Food.

Regarding the rice shortage in January, TCB information officer Humayun Kabir told The Business Standard, "Rice was supplied until December, but it was unavailable in January. TCB is in communication with the food directorate and will resume distribution if rice becomes available."

A source revealed that the food directorate supplies 50,000 tonnes of rice to TCB every month. However, no budget allocation exists within the food directorate for supplying rice to TCB.

"There is also no allocation in the commerce ministry's budget for this purpose," the source told TBS on condition of anonymity. "As a result, the food directorate has no funding to cover the costs of purchasing, managing, and transporting the rice."

The source further explained, "There is no book adjustment system in place. Consequently, the food directorate has suspended rice supply to TCB until it receives clarity on how it will recover the costs for the rice already supplied."

Meanwhile, to address rising demand, the food ministry has requested an additional allocation of Tk1,534 crore from the finance ministry for open market sales and Tk3,372 crore for rice imports. However, the finance ministry has yet to make a decision.

According to TCB data, the price of coarse rice, such as Swarna and China, has risen by Tk3-4 per kilogram in the past week, currently selling at Tk54-58 in various markets across the capital.

On 31 December and even on 7 December, this variety of rice was priced at Tk50-55 per kilogram.

To support low-income families and ease market demand, TCB distributes several essential products at subsidised rates each month through one crore family cards nationwide. 

These regularly include edible oil, pulses, and sugar, along with rice and onions. Chickpeas and dates are also added to the list during Ramadan.

The previously handwritten TCB family cards are being replaced with smart digital cards under a government initiative.

According to the TCB information officer, as of 7 January, 57 lakh beneficiaries have received smart cards, while another six lakh cards are being processed and are expected to be delivered this month.

"If the remaining six lakh cards are distributed as planned, up to 63 lakh beneficiaries will be able to purchase products from TCB, leaving the rest unable to do so," he added.

Meanwhile, verification of NID and other information for 13 lakh cardholders is ongoing, and cards will be issued to eligible individuals upon completion of the verification process.