Dhaka:The Trading Corporation of Bangladesh (TCB) is implementing a strategic plan to reduce its reliance on government subsidies by Tk 500 crore to 600 crore in the current fiscal year. The plan, spanning four to five years, focuses on lowering bank interest expenses, cutting operational costs, and boosting earnings from commercial activities.
According to Bangladesh Sangbad Sangstha, TCB Chairman Brigadier General Mohammad Foyshol Azad stated that the corporation is working towards financial self-reliance by diminishing its dependency on subsidies without increasing the prices of subsidized products. Despite the growing number of beneficiaries potentially increasing subsidy requirements, TCB aims to manage these challenges by addressing the gap between procurement and selling prices, especially in commodities like edible oil, which has been sold at a significant loss.
TCB incurred Tk 2,514.22 crore in subsidy expenditure in the fiscal year 2025-26, with a budgetary allocation of approximately Tk 5,500 crore. Edible oil remains a significant contributor to subsidy costs, as it is sold at Tk 100 per litre against a procurement cost of around Tk 190-195 per litre. To curb financing costs, TCB now purchases sugar and lentils with cash, reducing reliance on bank loans and letters of credit.
The corporation has successfully reduced bank interest expenses by approximately Tk 14.19 crore in the first two months of the current fiscal year and aims to cut annual bank interest costs by Tk 300 crore. Additionally, TCB has introduced an application programming interface (API) to streamline cash flow and ensure faster payment processing from dealers.
TCB's commercial activities have also been enhanced, with the introduction of products like soap, detergent, and salt. These products are sold above procurement cost but below market prices, contributing Tk 24.37 crore in profit in FY2025-26. The corporation is also optimizing distribution and administrative costs by utilizing regional warehouses, which is expected to lower expenses significantly.
The TCB Chairman emphasized that the government has no intention of increasing prices for existing subsidized products, reassuring beneficiaries that current prices will remain unchanged. The introduction of additional optional products aims to diversify revenue without imposing purchasing requirements on beneficiaries.