The government is set to increase the price of sugar sold under the Trading Corporation of Bangladesh (TCB) by Tk 10 per kg, reports The Financial Express.
Sources say the TCB has suggested a new price of Tk 80 per kg for sugar to ease pressure on government funds, the media stated.
Currently, around six million low-income families with smart cards benefit from the TCB’s subsidized sales program, down from 10 million previously. The corporation argues that the price increase will not significantly affect these beneficiaries but will help save over Tk 8.40 billion in subsidies annually.
The TCB has already submitted the proposal to the commerce ministry. A ministry official confirmed that, on January 2, the ministry had asked the corporation to assess the possible impact on consumers if prices were raised.
Under the program, each cardholder can purchase up to one kilogram of sugar, two kilograms of lentils, and two litres of soybean oil. The TCB’s analysis indicates that, while market prices for these items have surged over the past year, government-controlled rates have remained unchanged.
The proposal also suggests that increasing TCB prices could help curb unscrupulous practices, such as hoarding and black-market sales by dealers. It further argues that charging slightly higher rates could discourage retailers from inflating prices in local markets.
Despite repeated attempts, senior TCB officials declined to comment on the issue. However, a senior commerce ministry official confirmed on Monday that the proposal had been received and was under review.
