The Trading Corporation of Bangladesh (TCB), the state marketing agency that sells essentials at subsidised prices, aims to cut its subsidy by Tk 500 to 600 crore this financial year. It plans to do so by lowering bank interest and running costs and earning more from commercial sales. TCB also plans to reduce its reliance on government subsidy and become financially self-reliant within four to five years. It says there is no plan to raise the prices of subsidised goods.
TCB's subsidy spending in 2025-26 was Tk 2,514.22 crore, against a budget allocation of about Tk 5,500 crore. Its chairman, Brigadier General Mohammad Foysal Azad, said the core problem is selling goods far below cost: some are sold 40 to 45 per cent below the purchase price, and edible oil needs the most subsidy. Since 2022 TCB has sold edible oil at Tk 100 a litre, while buying it now costs Tk 190 to 195 a litre including dealer commission, and about Tk 200 with bank interest.
To cut interest costs, TCB now buys sugar and lentils with cash instead of letters of credit (LC) and loans against them (LTR). That saved about Tk 14.19 crore in bank interest in the first two months of the financial year, and about Tk 42.25 lakh in LC charges and related costs. Its annual interest bill is now Tk 400 to 450 crore, and it aims to cut about Tk 300 crore of that. Because private banks offer rates 1.25 percentage points below state banks, TCB has also started opening LCs through them.
TCB has launched an application programming interface (API) so that sales money reaches it faster: payments used to come through deputy commissioners' accounts and will now go straight from dealers to TCB. Since September goods have been supplied directly from regional warehouses, cutting transport and handling costs. Surveys cost the agency Tk 60 to 70 crore a year, and ending repeated surveys could save Tk 40 to 50 crore.
To earn more, TCB has brought soap, detergent and salt to market as commercial products. They sell below market prices but above cost, and commercial activities made a profit of Tk 24.37 crore in 2025-26. Foysal Azad said buying these products is entirely optional for beneficiaries, no one will be made to buy them, and subsidised goods will be sold at the old prices.
The chairman cautioned that the total subsidy could still rise if the number of beneficiaries grows. About 5 million people now buy goods through TCB each month, including extra products, and the target this year is 7 to 8 million. "If we reach 8 million people this year, we hope to reach 10 million next financial year," he said.
The report is by Dainik Bangla.
Photo: Press Information Department / Wikimedia Commons (Public domain)
Source: Dainik Bangla
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