The Trading Corporation of Bangladesh (TCB) is grappling with mounting financial pressure as soaring procurement costs and high-interest bank loans have pushed its subsidy burden beyond Tk 6.15 billion in just three months, sources say.
Data shows between October 1 and December 31, 2025, the TCB faced a total trade gap of Tk 6.16 billion, reflecting the difference between the cost of importing and distributing essential commodities and the subsidised prices that consumers are charged.
The losses underscore the growing fiscal strain of the government's effort to provide low-cost essentials to nearly 10 million low-income families amid persistent inflationary pressure.
Among all commodities, soybean oil generated the largest deficit, accounting for more than Tk 3.25 billion of the total trade gap.
Lentil and sugar created deficits of Tk 1.81 billion and Tk 1.11 billion, respectively.
Although the state-run TCB earned marginal profits from non-food products, such as laundry soap and detergent, the gains were too small to offset the heavy losses incurred from subsidised food distribution.
TCB's financial difficulties have been compounded by rising borrowing costs tied to its Loan against Trust Receipt (LTR) facilities from four state-owned banks - Sonali, Rupali, Agrani, and Bangladesh Krishi.
The banks currently charge an interest rate of 12.90 per cent, significantly increasing TCB's financing burden.
According to official estimates, interest expenses accounted for around 9.6 per cent of the total subsidy requirements in the fiscal year 2022-23.
That share was projected to nearly double to 18.21 per cent by FY25, reflecting the impact of elevated lending rates and expanding subsidy operations.
In a proposal submitted to the Ministry of Commerce, TCB Chairman Mohammad Foyshol Azad argued that the corporation should not be treated as a commercial profit-making institution as its primary role was to stabilise markets and protect low-income consumers.
The agency requested the government to reduce interest rates on its government-backed loans to between 5.0 per cent and 6.0 per cent, beginning on July 1, 2026.
Officials warned that without lower financing costs and stronger fiscal support, the TCB's ability to continue large-scale subsidised sales might weaken, potentially exposing low-income households to further food price shocks.
Experts say the situation highlights the broader challenge facing the government, which is balancing social protection programmes with rising fiscal and banking-sector pressures in an environment of high inflation and expensive credit.
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