TCB truck sales closed, 4.3m family cards cancelled amid inflation woes

Last October, the Trading Corporation of Bangladesh (TCB) launched a programme to sell oil, lentils, and rice from trucks to assist low-income people.

As a result, 24,500 people in Dhaka and Chattogram were able to purchase these essential goods at subsidised prices daily, even without TCB family cards. However, this programme was discontinued after running for only two months and seven days.

Similarly, the Department of Agricultural Marketing introduced a programme in October to sell agricultural products from trucks at subsidised prices.

Unfortunately, this initiative has also been recently halted. Additionally, 4.3 million of the 10 million TCB family cards issued nationwide have been cancelled due to irregularities.

Economists warn that low- and middle-income households are currently struggling under the pressure of high inflation. In this context, expanding programmes like truck-based sales is crucial to alleviating their hardships.

Conversely, shutting down these initiatives or reducing their scope will likely exacerbate the challenges faced by the poor.

The people of Bangladesh endured significant pressure from high inflation throughout last year. According to the Bangladesh Bureau of Statistics (BBS), food inflation remained in double digits for nine consecutive months.

Midway through the year, the prices of essential items such as rice, onions, potatoes, chicken, and eggs surged sharply in the market.

To alleviate the burden, the Trading Corporation of Bangladesh (TCB) launched a programme on 24 October to sell goods via trucks at 50 locations in Dhaka and 20 locations in Chattogram.

Each truck carried enough products to serve 350 customers, who could buy up to two litres of edible oil, five kilogrammes of rice, and two kilogrammes of lentils. This initiative allowed consumers to save at least Tk 350 or more. Despite its success, the program was discontinued on 31 December.

TCB officials explained that the truck sales programme was initiated temporarily in October at the direction of the Ministry of Commerce. Although it was extended once, the programme ended on 31 December due to the absence of further instructions. Officials stated that sales would resume when new directives are issued.

Commerce Advisor Sheikh Bashiruddin told Prothom Alo yesterday, “We have been informed about the matter. The truck sales programme will be reconsidered.”

Similarly, prices of various vegetables, chicken, and eggs increased abnormally in September and October. To address this, the Department of Agricultural Marketing began selling agricultural products via trucks in Dhaka and Chattogram in mid-October.

The initiative provided essential items like potatoes, eggs, onions, and vegetables at affordable prices. However, this programme also came to an end on 27 December.

Director General of the Department of Agricultural Marketing, Md. Masud Karim, stated that the programme was halted due to a decline in vegetable prices. He added, “If the government considers it necessary, we are ready to work with any agricultural product experiencing a price hike.”

Previously, the Trading Corporation of Bangladesh (TCB) sold essential goods to the public at affordable prices through dealers operating trucks across the country, including in Dhaka.

However, in June 2022, the truck sales program was replaced with the "Family Card" initiative aimed at low-income individuals. Under this programme, TCB provided select products to 10 million families each month. A cardholder could purchase up to two litres of edible oil, two kilograms of lentils, one kilogram of sugar, and five kilograms of rice per month.

During the previous Awami League government, allegations of widespread irregularities surfaced regarding the distribution of these family cards.

After assuming office in August, the interim government initiated an investigation into these issues. Following rigorous checks and evaluations, 4.3 million cards were removed from the original list of 10 million.

According to TCB officials, individuals who had obtained cards through irregular means were excluded from the programme. Starting last Wednesday, the remaining 5.7 million families began receiving new smart cards to replace the earlier paper cards. The goal is to gradually increase the distribution back to 10 million cards.

In addition to TCB's efforts, the Food Directorate sells rice and flour at subsidised prices through the Open Market Sales (OMS) programme, targeting low-income individuals. This service operates through 191 sales centres across Dhaka, including 70 truck-based locations. Consumers can purchase up to five kgs of rice for Tk 30 and five kgs of unpackaged flour for Tk 24 from these centres.

Food Directorate officials reported that the OMS programme is currently active in Dhaka, Gazipur, Narsingdi, and Narayanganj districts, as well as all city corporations, district and pourashavas. Discussions are also underway to expand the OMS programme to upazila levels, with a decision expected later this month.

When TCB launched its truck sales programme last October, the organisation indicated that the initiative could be extended if inflation remained high. However, despite food inflation reaching 12.92 per cent in December, according to the Bangladesh Bureau of Statistics (BBS), the programme was not extended.

While vegetable prices saw some decline, the cost of most other essential goods remained unchanged, further straining low-income households. Economists believe that discontinuing the truck sales programme in this environment will exacerbate hardships for the general public.

MA Razzak, chairman of the private research institute Research and Policy Integration for Development (RAPID), told Prothom Alo that halting the truck sales programme was a mistake.

He suggested that the products allocated for the 4.3 million cancelled family cards could have been redirected to OMS or truck sales. This approach, he argued, would have provided much-needed relief to the people.