In contrast to the government policy of strengthening the state-owned Trading Corporation of Bangladesh, the parliamentary watchdog on commerce yesterday opposed providing subsidies for years, terming it a ‘bleeding of the economy’.
According to its election manifesto for the ninth parliamentary polls, the Awami League government had granted over Tk272 crore as subsidy to what they say keep the price level of essentials down.
The parliamentary standing committee on commerce ministry strongly opposed the TCB chairman’s proposal for increasing its paid-up capital to Tk1,000 crore from the existing Tk5 crore, asking the corporation to come up with an idea that could stop the subsidy from the public exchequer.
The 10-member watchdog, with its chairman Ali Ashraf chairing, rejected the ministry’s offer of overseas trips for the committee members to take part in the trade fairs and recommended that the Export Promotion Bureau prepare a report on the outcomes of the overseas trade fairs costing public money.
“How long should the subsidy continue? The products marketed by TCB are worst standards; these are, in most cases, edible. This bleeding of the economy must stop,” Ali Ashraf told the Dhaka Tribune after the meeting at the parliament building.
The TCB chairman sought Tk1,000 crore as paid-up capital, but the committee rejected, said Ali Ashraf.
“Given the context of globalisation, the World Trade Organisation and the free market economy, can the state do business now? The state should only facilitate and monitor the situation,” he said. “The idea of business by the state no longer exists”.
The working paper presented in the meeting reads that the Commerce Ministry had put forward a proposal to the Finance Ministry to create an interest-free current capital of Tk200 crore for TCB aimed at reducing the amount of subsidy.
Monjurul Islam Liton, the Awami League MP from Sundarganj of Gaibandha, told the meeting that TCB could not play its due role as expected. “TCB must perform better,” he told the Dhaka Tribune.
TCB has 12 warehouses in 10 districts with the capacity of 41,77 metric tonnes. Of the total, eight rented warehouses have the capacity of 32,207 metric tonnes.
The corporation plans to increase the capacity to 128,184 metric tonnes. It had already started constructing four more warehouses in Chittagong, Rajshahi, Sylhet and Rangpur divisions — each having the capacity of minimum 4,000 metric tonnes.
According to its development plan, TCB is set to open regional offices in Mymensingh, Bogra, Comilla and Faridpur.
Before the start of the meeting, one of the committee members requested Commerce Minister Tofail Ahmed to sponsor the MPs’ overseas tour. The minister then told the meeting that the MPs could attend the trade fairs arranged by EPB.
“This is not a necessity for the MPs to go on foreign trips,” said Prof Ali Ashraf, adding that EPB should give the watchdog a report on the gains of the trade fairs as huge amount of money was spent for such purposes.