TCB plans Tk8,000cr procurement to stabilise essentials market

The state-run Trading Corporation of Bangladesh (TCB) has planned to purchase essential commodities worth around Tk8,000 crore during the current fiscal year to stabilise the country's essential commodity market amid a global supply chain crunch.

Edible oil, lentils and sugar will remain the main procurement items, alongside additional commodities such as dates and chickpeas, officials said. Initially, TCB plans to source about 50% of these products domestically while the remaining 50% from international markets.

"If international sourcing proves more competitive and reliable, the corporation may increase its share of overseas procurement," said TCB Chairman Brigadier General Mohammad Foyshol Azad in a recent interview with the state-run news agency BSS.

According to the Ministry of Commerce, the TCB has prepared a procurement plan for FY27 to ensure adequate supply of essential commodities. Under the plan, TCB intends to procure a total of 22 crore liters of edible oil, 2.20 lakh tonnes of red lentils, 1.10 lakh tonnes of sugar, 14,000 tonnes of chickpeas and 4,400 tonnes of dates through local and international sources.

The TCB has also outlined operational measures to maintain adequate stocks and ensure uninterrupted distribution of essential commodities among consumers.

As part of its stock management, TCB is monitoring monthly demand, allocation, stocks in stores, and supplies in the pipeline for major commodities.

TCB's operational plan also includes strengthening its storage capacity. The corporation currently has 40 godowns, of which nine are owned by TCB, and 31 are rented.

The total storage capacity of the godowns stands at approximately 48,370 tonnes, including 13,371 tonnes in TCB-owned facilities and 34,999 tonnes in rented facilities.

The procurement and stock-management initiatives are aimed at ensuring the availability of essential commodities and maintaining market stability, particularly for consumers dependent on government-supported supply programmes.

The chairman said TCB is also working to reduce its dependence on subsidies by procuring commodities at competitive prices and selling some products at modest margins.

Foyshol said the government is working to make the state-run corporation more responsive to market demand while expanding its role in stabilising prices of essential commodities.

"TCB supplies around 250,000 tonnes of edible oil annually, accounting for nearly 15% of the overall market. At the household level, its effective market share is much higher," he said.

Foyshol said TCB supplies a significant share of household requirements for lentils and sugar, helping prevent excessive price increases in the market.

He said TCB is also expanding its range of products. Besides oil, lentils and sugar, the corporation has already introduced soap, detergent and salt on a pilot basis and plans to add products such as flour, spices, chili and turmeric.

"These products will be supplied at prices lower than the regular market prices, but without government subsidy," the chairman said.

He said TCB currently has around 80 lakh smart cards endorsed, while nearly 75 lakh cards have already been distributed under the programme. The remaining beneficiaries are expected to receive cards before the next Holy Eid-ul-Fitr.

He described the smart-card system as a 'dynamic' process because beneficiaries may be added, removed or replaced due to death, relocation or other circumstances.

The chairman said TCB's current stock position is satisfactory for ongoing operations.

He said TCB is also moving towards full automation of its supply chain. "Dealers currently use mobile phones to scan smart cards, while POS machines are expected to be introduced soon to provide consumers with transaction receipts," he added.

A new mobile-based system is also being developed under which smartphone users will be able to access their smart-card information digitally and make payments through mobile financial services or in cash.