What's really happening with TCB's truck sales?

The Trading Corporation of Bangladesh's (TCB) subsidised sales of essential food products via trucks has ended as scheduled. 

But, as the programme serves as a lifeline for low-income people, amid high food inflation, some started demanding its reinstatement.

The state-run corporation provides subsidised food products items like rice, lentils, and edible oil to its millions of cardholders nationwide throughout the year. 

However, the truck sale is a temporary initiative aimed at addressing specific needs, according to officials.

The programme was last launched on 24 October last year, serving 28,000 people daily in Dhaka and Chattogram combined, including those without TCB cards. 

Although it was initially scheduled to end on 30 November, escalating food prices prompted an extension. Nevertheless, it concluded as planned on 31 December.

Civil society members and organisations, including the Jatiya Nagorik Committee, a political platform formed in the aftermath of the July uprising, slammed the "sales halt".

When asked, TCB spokesperson Humayun Kabir told TBS, "The truck sale programme runs during high inflation or special demand, as directed by the Ministry of Commerce."

"Family cardholders receive products at subsidised rates year-round, while truck sales are organised based on need. For example, chickpeas and dates are sold via trucks during Ramadan, the month of fasting. Last November, TCB sold potatoes via trucks when the price soared," he said, adding last time TCB held truck sales was in November and December of 2023. 

According to sources, in October, TCB sold products through 50 trucks in Dhaka and 20 in Chattogram. Under the programme, consumers could purchase up to 2 litres of edible oil at Tk100 per litre, 2 kg of lentils at Tk60 per kg, and 5 kg of rice at Tk30 per kg.

Starting from January this year, TCB is distributing products exclusively to families with smart cards.

Out of 1 crore family cardholders, only 57 lakh smart card holders are eligible. Previously, families used paper cards to buy TCB products, which have now been replaced with smart cards.

TCB officials said that cards issued to well-off individuals previously included on the list have been cancelled. Families with multiple cardholders and those with incorrect names or addresses on their cards were also excluded.

"When the one crore handwritten cards were integrated with the National ID [NID] system, it was found that some individuals had obtained a card in Dhaka using the same NID and another in their village home. Consequently, 43 lakh cards were excluded after NID verification," said Humayun Kabir.

He said that the transition to smart cards is ongoing to ensure transparency, noting that duplicate cards were automatically cancelled once the information was uploaded to the server.

Kabir added that six lakh new smart cards are currently being printed, including those previously excluded due to errors like mobile number mismatches, as well as new beneficiaries. 

Additionally, the information of 13 lakh more families is under verification, and they are expected to receive smart cards within the next 1-2 months, he added.

Govt's unnecessary tax increase and suspension of TCB programme amidst inflation: Dr Selim Raihan

SM Najer Hossain, vice-president of the Consumers Association of Bangladesh (CAB), told TBS, "Previously, TCB products were distributed to 1 crore cardholder families, but now only 5.7 lakh families are receiving them, leaving 43 lakh families excluded. Many of those left out might have been omitted by mistake."

He opined that the truck sales programme could have continued for a few more days instead of being stopped abruptly.

"Meanwhile, the government has increased VAT and taxes on various products. This raises the question: does the government aim to solve the people's problems, or is it adding to their difficulties?" he said.

In an opinion piece published in The Business Standard today, Executive Director of Sanem Selim Raihan has said the recent decisions by the interim government—raising taxes and suspending the TCB truck sale program—clearly reveal the short-sightedness and inconsistency of state policies. 

"The first decision, which increases taxes on over a hundred products, is particularly troubling for the public. The current high inflation rate has already put immense financial pressure on the population, and further tax increases will only exacerbate this burden. Consequently, the prices of goods in the market will rise, creating even more challenges for the poor and middle classes.

It is truly alarming that the government continues to rely heavily on indirect taxes to boost revenue. Indirect taxes generally place the most strain on the general public, as they are directly tied to the price of goods or services, with the entire burden falling on consumers, he wrote.

"On the other hand, the suspension of the TCB truck sale program is deeply troubling. This initiative was a crucial means of providing affordable goods to low-income people. Given the severity of inflation and the instability of people's incomes, this program could have been an important tool for further aiding the poor," Selim Raihan wrote.

Selim, also an Economics Professor at DU, said however, the government's decision contradicts the reality that such a program is needed. By suspending the TCB initiative, the government has narrowed the scope of assistance to those in need, highlighting a disconnect between the government's economic policies and the public's needs. This move will not only worsen the living conditions of the poor but will also undermine public trust and confidence in the government.