Bangladesh : TCB to procure 66m litres of edible oils
The Trading Corporation of Bangladesh (TCB) plans to procure 66 million liters of edible oils, 10,000 tonnes of sugar, and 10,000 tonnes of lentils to support subsidized sales for low-income families. These items will be sourced locally, though procurement faces challenges due to supplier hesitancy over government-fixed prices. To address shortages, particularly for sugar ahead of Ramadan, the TCB seeks to activate MoUs with Canada, Russia, India, and Nepal. Subsidized sales currently benefit 30-32% of Bangladesh’s population.
The Trading Corporation of Bangladesh (TCB) would purchase 66 million litres of edible oils from the local suppliers to sell at subsidised rates among 10 million low-income card-holder families, sources said.
It would also buy 10,000 tonnes of sugar and 10,000 tonnes of lentils from domestic sources.
The state trading agency has already floated tenders to procure the essential commodities.
It will procure 22 million litres of soybean oil, 11 million litres of rice bran oil, 22 million litres of palm oil and 11 million litres of sunflower oil.
The TCB is currently conducting its sales drive of items like soybean, lentil, and sugar. Moreover, it sells chickpeas and dates at reasonable rates during the holy month of Ramadan while onion and potato during lean periods or to meet emergency needs.
The TCB needs around 20 million litres of soybean oil per month and it procures it from the local suppliers to meet the demand for the poor families.
According to a TCB document, currently open bids are invited to procure these products from both local and international sources. However, due to a lack of genuine suppliers, it is failing to buy soybean, palm Oil and rice bran oil.
However, it has floated such tenders to procure the edible, sugar and lentils from the local suppliers.
In the last couple of months, the TCB could not procure essentials from domestic and international sources despite its hectic search for sufficient suppliers/lower bidders, according to a previous document.
In many cases, some genuine suppliers are proposing higher than reasonable rates.
Domestic suppliers are not willing to bid as the rate fixed by the government is much lower than the current market rates, says a source with good knowledge about the market.
The mobilisation of such commodities as required for the 10 million cardholders often faces disruptions.
The TCB has not been selling sugar for the last couple of months due to a shortage of the sweetener. It is, however, becoming desperate to procure sugar for the upcoming Ramadan drive. TCB officials are expecting to be able to supply sugar during the month.
To procure adequate essentials, including edible oil, from abroad, the TCB recently requested the commerce ministry for steps to activate memoranda of understanding (MoUs) with four different countries -Canada, Russia, India and Nepal.
A TCB document suggested that the MoUs would be activated with an eye to import all key items from the international market.
Items like edible oil, lentil and sugar will be available at affordable prices if the MoUs are executed, it reads.
The TCB signed the MoUs with Canada, India, Russia and Nepal in March 2011, November 2018, March 2024 and March 2020 respectively.
The government is going to buy some commodities in advance to operate the TCB sales drive for the upcoming Ramadan, according to a source.
Currently, the TCB is selling 5.0 kg of rice (supplied by the food department), 2.0 kg of lentil and 2.0 litres of soybean oil at subsidised rates, with 30-32 per cent of the country’s population benefiting from the programme.
These items are bought every month as per annual procurement plan following the Public Procurement Act 2006 and the Public Procurement Rules 2008.
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Source : The Financial Express
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