The government is going to increase oil, lentil and sugar prices by Tk 20 per litre, Tk 10 per kg and Tk 10 a kg respectively for sale under the Trading Corporation of Bangladesh (TCB).
The TCB has proposed the prices of soybean, lentil and sugar at Tk 120 per litre, Tk 70 per kg and Tk 80 per kg respectively to lessen the burden on the coffers, according to sources.
Currently, the drive is being operated among an estimated 6.0-million low-income smart-cardholding families. It was earlier 10-million cardholders.
The TCB claims there will be no significant impact on the smart cardholders if the prices of the items are enhanced. "More than Tk 8.40 billion of subsidy will be saved annually."
It has sent the proposal to the commerce ministry to this effect.
On January 02, the ministry asked the TCB to submit a report on the likely impact on consumers if the prices of the key items were enhanced, according to a ministry official.
A consumer can buy a maximum of one kilo of sugar, two kilos of lentils and two litres of soybean oil from the sales drive through smart cards.
Earlier, the TCB analysed prices of the items in question at consumer level.
The government did not increase the prices of TCB products, although the same have increased 'in the local kitchen market' during the last one year period, reads the proposal.
TCB believes the tendency of selling at higher prices at shops will reduce after the collection of the items by the general public.
Besides, in some cases, sharp practices or hoarding to sell them on the black market by the dealers concerned will also decrease if the prices are hiked.
Senior officials of the entity declined to make any comment regarding the issues despite several attempts over phone.
"We have received the proposal and working on it," said a senior ministry official at the secretariat on Monday.
