Tk5,280cr to be spent yearly on food subsidy for 1cr family cards

The government will spend Tk5,280 crore a year to provide food assistance at a subsidised cost to one crore families through family cards initiated by the Trading Corporation of Bangladesh (TCB), said Tapan Kanti Ghosh, senior secretary, ministry of commerce.

"This information came to us as preliminary, which may change if the price of the product increases or decreases," Tapan Kanti told The Business Standard at a seminar titled "Export diversification imperative: Key sectoral opportunities and policy priorities for Bangladesh" organised by Policy Exchange of Bangladesh in the capital on Thursday. 

TCB started selling products at subsidised rates through selected dealers in August when selling from trucks stopped. Family card holders can buy a maximum of two litres of soybean oil, two kilograms of lentil, one kilogram of sugar and two kilograms of onion.

The commerce secretary said that it is very difficult to do business in Bangladesh as there is no competitive environment. As a result, big businesses benefit, but not the small ones.

He acknowledged the various obstacles faced by traders. For example, approval should be obtained with NID to start a business.

Policy Research Institute (PRI) Executive Director Ahsan H Mansur said a shortage of capital and lack of FDI in flagship industries are the main obstacles to diversification in Bangladesh.

While presenting the keynote, Policy Exchange of Bangladesh Chairman M Masrur Reaz highlighted the challenges of 14 high-potential sectors outside of RMG in Bangladesh. Among them, he highlighted the export potential of agribusiness, the digital economy, start up, synthetic footwear, existing barriers and ways to overcome them.

He also highlighted how Vietnam, one of Bangladesh's competitors, has been successful in diversifying export products.

Business leaders blame the lack of long-term policies, mistrust, cost of doing business, and lack of supportive attitude of the National Board of Revenue (NBR) for lagging in diversification.

Nihad Kabir, former president of the Metropolitan Chamber of Commerce and Industry (MCCI), said traders always have to be in tension about VAT-tax and HS code of imported goods. Much has been said about the modernization of NBR but nothing has been done.

Dhaka Chamber of Commerce and Industry's former president Abul Kasem Khan said Bangladesh is not competitive in any field except labour. Besides, Vietnam is getting additional benefits as a member of the Association of Southeast Asian Nations (Asean) and emphasised Bangladesh becoming a member of this bloc.

NBR's First Secretary Khairul Kabir Mia blamed the lack of automation of other agencies for the lag in customs-related activities including import and export.

Citing the recent Time Release Study, he said that it takes 10 days after the goods arrive at the port to be released. Out of that, only seven days are required to submit the bill of entry, which is not related to customs.

However, he admitted that the NBR needs reforms.