Public Food Distribution Drops by 6%

The Trading Corporation of Bangladesh (TCB) plans to procure 66 million litres of edible oil, 10,000 tonnes of sugar, and 10,000 tonnes of lentils from local suppliers to support 10 million low-income families. Despite issuing tenders, TCB faces challenges due to higher supplier rates and reluctance to bid at government-fixed prices.

The government will procure soybean oil, lentils, LNG, and fertilisers to meet domestic demand. The Advisors Council Committee on Government Purchase, chaired by Finance Adviser Dr Salehuddin Ahmed, approved proposals for these procurements.

The National Board of Revenue (NBR) has removed all import taxes on sunflower and canola oils and reduced the VAT on their imports to 5 percent, aiming to boost supply and control rising edible oil prices. Effective until March 31 next year, this move is expected to reduce import costs by Tk 40-50 per litre.

Despite rising inflation, public food distribution in Bangladesh fell by 6% year-on-year in the first half of the current fiscal year. Public agencies distributed 13.78 lakh tonnes of rice and wheat until December 5, down from 14.63 lakh tonnes the previous year.

Bangladesh's interim government approved several procurement proposals to support low-income households and farmers. The Trading Corporation of Bangladesh (TCB) will buy 1.40 crore litres of edible oil from S Alam Super Oil Ltd, including 30.10 lakh litres of soybean oil for Tk 53.34 crore and 1.10 crore litres of palm oil for Tk 134 crore.

The government has increased edible oil prices by Tk 8 per litre, setting bottled soybean oil at Tk 175 and loose soybean and super palm oils at Tk 157 per litre, effective immediately. The hike follows a supply crunch and rising international crude oil prices, now nearing $1,200 per tonne.