The large sum of money given by the government in subsidy to the Trading Corporation of Bangladesh (TCB) every year appears to have largely gone to waste as it yielded little benefit to the people.
The amount of subsidy for the TCB jumped to Tk 669.81 million in the fiscal year (FY) 2013-14, up from Tk 586.89 million in the previous FY, according to the TCB statistics.
In 2010-11 and 2011-12 the government provided Tk 690.8 million and Tk 775.88 million respectively in subsidies, the TCB data showed.
But the state-run trading wing could not make any visible impact with regard to keeping the market of essentials stable and at a tolerable level for the common consumers, despite getting a large amount of deficit financing every year, said a high official of the ministry of commerce (MoC) seeking anonymity.
The state-run entity mainly sells rice, pulse, oil, potato etc at subsidised rates to keep the market within the reach of the common people.
While talking to the FE Wednesday, Prof Dr MA Taslim of Dhaka University's Economics Department said: "It is not possible for the government to control market prices. Even it is not possible for those at the TCB to do it."
"The activities of TCB are very limited. As a result, the state entity could not leave any visible impact on the market of essential commodities," he added.
When asked about how to make TCB's market intervention more effective, he said: "It was closed down. Why has it been reopened?"
However, a high official at the MoC said the top priority of the present government was to keep the prices of essentials within the purchasing capacity of the commoners. So, the TCB was selling goods at subsidised rates across the country.
The present government was relentlessly working to contain the prices of essential commodities with the TCB taking measures to that end, he said about the current run of open-market sale.
"If you tell me that the consumers are not getting any benefit out of different TCB moves, it is obviously an unethical story. TCB has a significant contribution to reining in the prices of commodities," he also said.
The state-owned entity mainly sells rice, o
Sources, however, attributed the TCB failure to procedural delays, shortage of manpower, inadequate warehouses and dearth of capital.
Besides, low quality of imported goods, small profit margins and high costs of transportation were also discouraging dealers to do business with the TCB, the sources said.
As a result, they observed, no tangible impact could be witnessed in respect of market intervention, despite repeated efforts by the state-run corporation.
Due to the procedural delays, TCB cannot import any essential items in time. It thwarts the very purpose of imports, commerce ministry and TCB sources say.
When the demand for an item goes up in the market, the TCB cannot import it immediately due to its procedural drawbacks. In spite of government efforts to resolve a commodity crisis, the result turns out to be a zero, they say.
The TCB can play a significant role in ensuring a stable market. But the corporation cannot function efficiently on the local market without enhancing its capacity. It should work like a private firm, market experts note.
About such problems, a TCB official told the FE that the government had no other option but to strengthen the TCB as early as possible.
© 2024 - All Rights with The Financial Express
