TCB hikes prices of sugar, pulse

The Trading Corporation of Bangladesh (TCB) has hiked the price of daily essentials sold at subsidised rates by Tk 5 due to an increase in prices of the commodities, putting more pressure on the country's low-income groups.

As such, the price of sugar has gone up to Tk 60 per kilogramme (kg) while pulses will now cost Tk 70 per kg starting today, according to a press release from the TCB.

However, the price of edible oil has been kept unchanged at Tk 110 per litre.

The TCB sells these goods at subsidised rates to around 1 crore beneficiary cardholders in all metropolitan cities and other areas of the country in order to keep prices within the reach of low-income people.

The sales activities are conducted from designated shops and other establishments with the overall cooperation of city corporations as well as district and upazila administrations on a scheduled routine.

Professor Selim Raihan, an economist and executive director of the South Asian Network on Economic Modeling, termed the price hike as an act of "inconstancy" considering the current situation.

Price of sugar has gone up to Tk 60 per kg while pulse will now cost Tk 70 per kg from today

"The people who stand in line at TCB establishments are already under huge pressure. So, the government should not increase the prices at this moment," he said.

"It is incomprehensible to me how much the TCB will actually benefit by hiking the prices of sugar and pulses by Tk 5," he added.

The economist then underscored the need to increase allocations for expanding the coverage of this social safety net programme by raising the supply of such products.

However, TCB Chairman Ariful Hassan said they have merely adjusted the prices with the current market situation.

"We try to keep the subsidy around 30-35 per cent, but we have to adjust the prices when products become costlier," he added.

Hassan went on to say that even then, the price hike is not comparable to the rate at which prices have risen in regular markets.

For example, the TCB would previously buy sugar for around Tk 75-80 per kg and sell it for Tk 55.

Now though, they have to buy it for around Tk 110 to Tk 115 and sell it for Tk 60.

Hassan then assured that the TCB will continue selling essentials at subsidised rates until the market prices become stable.