Term paper
On
Consequences of interference by TCB on commodity market in
Bangladesh

Course no. MGT-301

Macroeconomics

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Md. Thoufiqul Islam
Assistant professor,
Department of Management Studies
University of Dhaka

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Nazim Uddin ID-106
Md. Sohag sarder ID-151
Fatema Rajani ID- 153
Syed Faisul Islam ID-214
Zahirul islam ID-219

13th batch
Department of Management Studies
University of Dhaka

  

March, 22, 2010.

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The number of persons to whom we owe thanks for their contributions to the development of this
paper defines enumeration. Of particular help in this project were the suggestions & advice
offered to us by our most respected course instructor Mr. Mohammad Thoufiqul Islam, lecturer
department of Management Studies, University of Dhaka.

We would like to give thanks our entire respondent who provided us information. Also thanks to
Mr. Serajul Islam Khandaker, P.S. to chairman and public relation officer of TCB.

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PREFACE

It is our pleasure to submit our term paper on ³consequences on interference by TCB on

commodity market in Bangladesh.´ While preparing this term paper, we have tried to gather as
much information as possible to enrich it. We believe that it was a challenging job to work with
this type of topic which is highly sensitive for our economy.

The present term paper is not free from limitations. There might have problems regarding lack &
limitations in some aspects & also some minor mistakes.

Regard,

Nazim Uddin ID-106

Md. Sohag sarder ID-151
Fatema Rajani ID- 153
Hasib Redwan Khan ID-174
Syed Faisul Islam ID-214
Zahirul Islam ID-219

13th batch
Department of Management Studies
University of Dhaka

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 [

  


March 22, 2010

Mohammad Thoufiqul Islam

Course Teacher,
Macroeconomics
Department of Management Studies
University of Dhaka

Subject:   
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Sir,

Here is a term paper about ³ 


 





 
 
 
 
´ for your kind evaluation. To prepare this term paper, we have given our best effort
that would enhance our efficiency.

We would be very grateful if you accept this term paper.

Sincerely Yours,

Nazim Uddin ID-106

Md. Sohag sarder ID-151
Fatema Rajani ID- 153
Hasib Redwan Khan ID-174
Syed Faisul Islam ID-214
Zahirul Islam ID-219

13th batch
Department of Management Studies
University of Dhaka

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The purpose of this research is to observe the consequences of TCB in commodity market. This
organization is the national trading house under the ministry of commerce. Data have been taken
from many direct and indirect sources. These are used to address the purpose of the research. At
present the activities of TCB are directing the market to some extent compared to the past.TCB
has a great potential to control and influence in commodity market. But this organization is now
in a position, suffering from various deficiencies because of its being a government organization.
So, most of the time the authority to take decision and actions are influenced by political leaders.
The manpower of TCB is not sufficient to run the activities of the organization properly. in
Bangladesh it is more important to activate and utilize the potential of TCB effectively. The
market price of major commodities in Bangladesh is going beyond the capabilities of consumers
and imbalance exists between demand and supply of consumer goods. Many market analysts and
specialists think that TCB can play the vital role in commodity market. To do so, the support of
government is required directly.






KEY WORDS:
1. Import & Export by TCB
2. Market condition
3. Performance of TCB
4. Impact in the commodity market

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In the backdrop of scarcities of essential consumer items and industrial raw
Materials after the liberation of Bangladesh in 1971, the Trading Corporation of
Bangladesh (TCB) was established under President¶s Order No. 68 of 1972. The main objective
behind the creation of TCB as the state trading organization was to ensure steady supply of
essential consumer goods and industrial raw materials and to make them easily available to the
consumers at reasonable prices.
The main functions of the corporation are:
1. To carry on the business of imports and exports in accordance with the policy of the
Government.
2. To arrange for the sale and distribution of the imported goods and to appoint
Dealers/agents etc. for this purpose as per Government directives.
3. To do all other acts and things connected with or ancillary thereto.
And
4. Monitoring of prices of essential commodities in the local market vis-a-vis prices in the
International market.
Ever since its inception, TCB did perform a commendable joy by ensuring steady inflow of a
large number of essential commodities in the market which provided succor to the common
people of the country. Over the years, TCB has developed expertise and is now manned with a
group of professionals who are highly skilled in import, export, shipping, clearing and
movement, marketing, distributing, banking and all other ancillary activities that go with a
national export-import house. Though originally set up as an import-export house, TCB has in
recent years been playing an increasingly important role in the field of exports. TCB is now
exploring worldwide market for Bangladeshi products and is supplementing the efforts of the
sector corporations and the private sector in boosting up exports from Bangladesh. Besides,
introducing new items and exploring new markets, it has been promoting the sale of different to
sell non-traditional items. As a sequel to the privatization policy and market economy drive to
the Govt. TCB¶s import activity is now confined to some essential consumer items like cement,
milk powder, pulses, spices, salt and few industrial raw materials etc. on intervention basis in
order to help stabilize the market prices by equitable distribution through its country wide
network.

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 OBJECTIVE OF THE STUDY

1. To find out the activities done by TCB.

2. To find out the role of TCB in commodity market in Bangladesh.
3. To find out the impact on the commodity market by the interference of TCB. .
4. To find out how many products TCB import and export to fulfill the demand of the
market.
5. To find out how political government affect the activities of TCB
6. To find out the importance of TCB for controlling the commodity market.

METHODOLOGY

 

The survey was carried out in Trading Corporation of Bangladesh (TCB) in the central of Dhaka
city. All their activities were investigated to identify whether the impact in the commodity
market exists or not.


 

For the purpose of the survey based on µconsequences of interference by TCB on commodity
market¶ a modified structured English version questionnaire was prepared. The questionnaire
was translated into Bangla.

The questionnaire had three parts:

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Part-1 had the introductory information. Part-2 had objective and main functions of TCB. Part-3
had the information how TCB interferes in the commodity market. The questionnaire with a
request letter was delivered to the PO to chairman and public relations officer of TCB. The letter
contained statements of request to cooperate the study, study rationale, study objectives and
instructions for proper filling up the questionnaire. One week later our questionnaire was
returned after filling up the paper.

 


Data obtained in the baseline survey were analyzed to identify the consequences of interference
by TCB on commodity market. We also read many articles of magazines, columns of different
newspapers and visited some other organizations to collect information and that information is
analyzed to fulfill our objectives.

Limitations of the study

1. Nowadays TCB do not perform their activities actively. So it is not possible to know
appropriately what TCB perform.

2. There is no appropriate information about market to TCB.

3. Employees of TCB were not as cooperative as it was needed to do our research.

4. We did not have enough time to do the research as it was related to our whole Economy.

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 ROLE OF TCB

The main functions of the corporation are to carry on the business of imports and exports in
accordance with the policy of the Government.

Export:

TCB started export activities from its very inception. During the year of 1973-92, TCB signed a
good number of special trading agreement (STA) / counter trading agreement (CTA) with
multinational business houses for mobilizing faster growth of export, specially no-traditional
items. TCB saved hard-earned foreign currency through importation of certain essential items
against export of goods under special trading agreement (STA) / counter trading agreement
(CTA).

TCB was the pioneer in export of readymade garments from Bangladesh for the first time in
1975 which has now become the main export item of the country. In the context of present free
market economy and having no product of its own, TCB¶s volume of export has decreased.
However, TCB has been continuing its export activities.

Main export items were:

1. Jute goods 7. Wet-blue leather 14.Molasses

2. Raw jute 8. Frozen shrimps 15.Hard board
3. Newsprint 9. Tamarind with seeds 16.Ginger
4. Finished leather 10.Human hair wastes 17.Frog legs
5. Urea fertilizer 11.Handicrafts 18.Partex
6. Ceramic products 12.Safety matches 19.Ready-made
13.Tea 20.Garments etc.

Export since 1972 (as on 08-06-2009)

(Fig. in crore TK)

Year Taka Year Taka Year Taka

1972-73 4.73 1984-85 66.95 1996-97 10.31
1973-74 7.51 1985-86 131.45 1997-98 12.85
1974-75 10.31 1986-87 154.71 1998-99 11.44

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1975-76 10.37 1987-88 183.87 1999-00 12.22
1976-77 11.04 1988-89 240.43 2000-01 17.39
1977-78 27.26 1989-90 117.02 2001-02 4.52
1978-79 20.49 1990-91 129.33 2002-03 1.01
1978-80 29.82 1991-92 90.43 2003-04 1.64
1980-81 27.87 1992-93 54.11 2004-05 2.37
1981-82 45.05 1993-94 25.59 2005-06 1.19
1982-83 34.83 1994-95 26.52 2006-07 1.63
1983-84 40.48 1995-96 19.69 TOTAL: 1586.43
Source: annual report of TCB (2008-09)

Import:
TCB played a vital and significant role in the import trade during the initial years after liberation.
By importing a good number of essential consumer goods and industrial raw materials, it
stabilized the prices in the market, as well as provided a great relief to the general consumers and
small industrial units by supplying goods at reasonable prices.

During the period of 1972-77 TCB used to import as many as 70 commodities such as cement,
milk food, C.I. sheet, drugs and medicine, textile, yarn, soda ash, auto rickshaw, salt, sugar,
onion, M.S Billets Al, Ingot, pig-iron, zinc ingot, arms and cartridges, timber etc. but due to
introduction of free market economy, TCB¶s role in the field of import has become very limited.
As a result, functions and activities of TCB have largely been squeezed.

Since fair trade has yet to be started, TCB¶s role is significant to control the market. In fact,
TCB¶s intervention role can never be denied. Whenever there has been any short-fall in the
supply of any essential consumer goods in the market, TCB has, on the advice of the
Government, made arrangement for the emergency import of the said items in order to ensure
adequate supply and to stabilize the market price. During 2005-06, in view of unusual price
situation of some essential commodities in the local market, TCB imported red lentils and
procured onion and gram (chhola) from local market and sugar from BSFIC for direct sale at a
fair price. The program is still continuing.

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Year Item Quantity C&F value
1981-82 Cement 417630 MT 62.41
G.C.I. sheet 19182 L.T 10.20
Milk food 86950 Ctn. 4.83
M.S. billets 69760 MT 32.07
Pig iron 40907 MT 11.96
Al. ingot 3396 MT 9.19
Zinc ingot 99.77 MT 0.16
Arms 925 Pcs. 0.25
Cartridges 840000 Pcs. 0.25
Razor blade 1500000 Pcs. 0.11
Drugs & medicine ----- 4.00
135.43

Year Item Quantity C&F value

1982-83 Cement 344586 MT 48.83
G.C.I. sheet 4420 L.T 4.84
Milk food 122000 Ctn. 7.14
Pig iron 3098 MT 0.91
Al. ingot 990 MT 2.74
Zinc ingot 200 MT 0.37
Drugs & medicine ---- 3.58
68.41

Year Item Quantity C&F value

1983-84 Cement 368744 MT 45.64
G.C.I. sheet 14851 L.T 17.87
Milk food 86780 Ctn. 4.70
Drugs & medicine ----- 5.19
73.074

Year Item Quantity C&F value

1997-98 Bp sheet 1881.74 MT 4.06
Zinc ingot 204.606 MT 1.18

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 Timber 600.442 MT 2.62
Arms 1000 Pcs. 1.18
Cartridges 500000 pcs. ----
Pesticides 60.00 MT 0.31
9.35

Year Item Quantity C&F value

1998-99 Bp sheet 1908.90 MT 3.69
Timber 1550.00 MT 6.03
Glass ware 130000 pcs. 0.02
Pesticides 60.00 MT 0.91
10.65
1999-00 Timber 2935.622 MT 11.02
Arms 1200 pcs. ----
Cartridges 249500 pcs. 1.17
Sugar 13700 MT 16.39
28.58
2006-07 Masur Dal 3061.00 MT 15.14
Locally procured Sugar 1500.00 MT 5.85
Soyabean oil 100000 LTR 0.66
Chhola 76.00 MT 0.50
Onion 57.00 MT 0.11
22.296
Year Item Quantity C&F value
2007-08 Soyabean oil 500000 LTR 3.50
Locally procured
3.50
2008-09 Sugar 140.00 MT 0.53
Locally procured Soyabean oil 500.00 MT 5.46
Chhola 15.50 MT 0.08
Onion 32.44 MT 0.07
6.14

Source: annual report of TCB (2008-09)

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Import since 1972 (as on 11.11.08)
Fig. in crore TK.

Year Taka Year Taka Year Taka

1972-73 143.36 1984-85 47.60 1996-97 9.64
1973-74 97.50 1985-86 138.64 1997-98 9.35
1974-75 67.31 1986-87 145.36 1998-99 10.65
1975-76 73.90 1987-88 61.09 1999-00 28.58
1976-77 24.19 1988-89 219.20 2000-01 305.91
1977-78 59.43 1989-90 84.20 2001-02 56.40
1978-79 97.54 1990-91 65.06 2002-03 --
1979-80 97.08 1991-92 45.20 2003-04 ---
1980-81 119.19 1992-93 53.78 2004-05 ----
1981-82 135.43 1993-94 48.52 2005-06 36.52
1982-83 68.41 1994-95 11.04 2006-07 22.26
1983-84 73.40 1995-96 40.05 TOTAL 2495.79
Source: annual report of TCB (2008-09)

Stock position as on 09.06.09

(During the year 2008-09)

Sl.# Name of goods Imported Sale (MT/ Ltr) Stock (MT/ Ltr)
/purchased
01. Masur Dal
02. Sugar 999.795 MT Nil 999.795 MT
03. Onion
04. Chhola (gram)
05. Soyabean oil 546360 Ltr. 123022 369745 Ltr.

Source: annual report of TCB (2008-09)

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Market study and research
Consequent upon abolishment of the dept. of pricing and market intelligence (PMI) with effect
from 31-12-89, TCB started to discharge the functions of market intelligence from January 1990
as per instruction of the ministry of commerce vide their letter no. 5(15)/89-Ad-3/448 dt.
24.12.89. After collecting the retail prices of daily essential commodities from different markets
of Dhaka city, TCB prepares a good number of statements & reports and send the same daily to
different ministries/offices/agencies.

To bring dynamism in monitoring, TCB as per approval of the ministry of commerce, has
formed market study and research cell. From the year 2001-02, the officials of this cell has been
visiting different markets of Dhaka city and collecting the retail and international prices of
essential commodities and preparing reports and being distributed to the office of the honorable
prime minister, different ministries / offices / Agencies every day.

Moreover, this cell, after examining market prices, sends reports to the ministry of commerce.
Concerned officials of the cell, are contacting with the directorate of agriculture marketing under
ministry of Agriculture, Bangladesh Bank, producers, importers and traders of different items,
NBR, sea and land ports, collect information on demand, supply, production, shortage,
international prices, import necessity etc. and send comments and suggestions to the ministry of
commerce for necessary action.

Profit and loss (1972-2007)

Fig. in crore TK.

Year Profits Loss

1972-73 5.22 --
1973-74 9.49 --
1974-75 13.40 --
1975-76 9.38 --
1976-77 11.75 --
1977-78 0.68 --
1978-79 8.11 --
1979-80 14.91 --
1980-81 6.60 --
1981-82 5.05 --
1982-83 5.37 --
1983-84 7.10 --
1984-85 3.20 --
1985-86 6.91 --
1986-87 11.63 --
1987-88 10.24 --

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1988-89 11.33 --
1989-90 8.62 --
1990-91 1.56 --
1991-92 4.96 --
1992-93 -- 9.36
1993-94 26.46 --
1994-95 3.13 --
1995-96 -- 1.53
1996-97 -- 3.77
1997-98 -- 1.85
1998-99 -- 1.52
1999-00 -- 2.70
2000-01 13.21 --
2001-02 102.76 --
2002-03 -- 9.43
2003-04 2.78 --
2004-05 3.05 --
2005-06 1.92 --
2006-07 -- --
TOTAL 308.82 30.16
Source: annual report of TCB (2008-09)

Present functions of TCB:

A. Market intelligence:
1. To sell essential commodities like masur Dal, sugar direct to the consumers by open truck
and through OMS dealers & some selected sale centers within the capital city & some
other divisional towns.
2. Daily market price monitoring of essential commodities of Dhaka city.
3. Collection of information regarding comparative statement of last 3 year¶s demand,
production, supply, stock, and market position of goods.
4. Daily price monitoring of international market price.
5. Daily collection of information retailing to import, clearance, custom duties, VAT on
various goods coming through Chittagong port and monitoring price of essential
commodities of Chittagong, Khulna & Rajshahi city.
6. Daily price monitoring of essential commodities of Khulna city and collection of
information retailing to import, clearance, custom duties, VAT on essential goods coming
through Benapole land port & Rajshahi commissariat.
B. Selling of seized goods:
Sale of confiscated goods (sugar and salt) through tender. TCB earned TK. 9.48 crore
since 1998-2006 by selling of seized goods.

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 Earning from seized goods
(1997-98 To 2007- as on June ¶08)
Fig. in Lac. TK.
Year Sugar Salt Red lentil Total
1997-98 58.48 10.83 -- 69.31
1998-99 163.81 3.08 -- 166.89
1999-00 114.05 0.43 -- 114.48
2000-01 192.85 19.84 0.22 212.91
2001-02 132.31 15.11 -- 147.42
2002-03 74.50 33.28 -- 107.78
2003-04 98.24 9.57 -- 107.81
2004-05 05.35 16.70 -- 22.05
2005-06 121.94 36.90 -- 158.84
2006-07 23.06 1.14 -- 24.20
2007-08 -- -- -- --
TOTAL 984.59 146.88 0.22 1131.69

Source: annual report of TCB (2008-09)

Performance of TCB in 2006-07

(in MT)

Sl.# Name of item Approved Imported Local Sale

quantity purchase

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 01. Red lentil 3000 3040.750 -- 3040.750
02. Soybean oil 3000 -- 600.00 600.00
03. Gram 500 -- 76.100 76.100
(chhola)
04. Onion 200 -- 57.297 57.297
05. Sugar 1500 -- 1500 1500

Source: annual report of TCB (2008-09)

Performance of TCB in 2007-08

(in MT)

Sl. # Name of item Approved Imported Local Sale

quantity purchase
01. Red lentil 3000 -- -- --
02. Soybean oil 3000 -- 546.360 123.022
03. Gram 500 -- 15.500 15.500
(chhola)
04. Onion 500 -- 32.346 32.346
05. Sugar 300 -- 140.000 137.559
06. Arms 2000 pcs -- -- --
ammunition 5.0 Lac

Source: annual report of TCB (2008-09)

Performance of TCB in 2008-09

(in MT)

Sl. # Name of item Approved Imported / Sale Stock

quantity local purchase

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 01. Red lentil 3000 -- -- --
02. Soybean oil/ 12500 -- -- 369745 Ltr
palm oil from previous
year
03. Gram 100 -- -- --
(chhola)
04. Onion 100 -- -- --
05. Sugar 12500 1000 MT -- 999.795
06. Arms 2000 pcs. -- -- --
Ammunition 5.0 Lac.

Source: annual report of TCB (2008-09)

SWOT analysis of TCB

Strengths:

1. TCB owns 42.50 bighas of land including 2 office buildings in Dhaka and another 2 in
Chittagong and Khulna.
2. Self-financed organization with 4 regional offices in old divisional towns.
3. TCB owns 3 godowns in Dhaka with 8850 MT storage capacity.
4. Total bank deposit and value of goods in stock TK. 97.83 crore.

Weaknesses:

1. Absence of experienced and skilled manpower.

2. Approval of organogram showing 225 manpower still under process (PARC
recommended for 523 manpower).
3. Very weak board of directors (only two members).
4. Recruitment and promotion under existing service rules is difficult.
5. Storage capacity is quite insufficient.
6. Procurement of commodities following PPR-2008 is time consuming. Tenderers feel
disinterested to participate in tender giving 10% PG.
7. Very weak distribution network (only 5 sale-centers and 76 dealers throughout the
country.
8. Due to procurement problem, dealers cannot be given saleable items on regular interval.
9. Import in bulk quantity is not possible.

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Opportunities:

1. As a state owned organization, TCB has enough scope to intervene the market
price.
2. Vacant lands of TCB can be used to increase storage capacity and oil refinery.
3. Vacant lands of TCB at Uttara (Dhaka) can be utilized to provide housing facility
for TCB employees.

Threats:

1. TCB is not well-equipped to face the challenges of market economy.

2. To survive as a commercial organization competing the private sector (as per provision of
PO.08).
3. Procurement of commodities cannot be done, as tenderers quote price higher than the
market price.

Findings of the study

1. TCB cannot play the vital role to interfere in the commodity market.

2. Commodity market is centralized to some businessmen.

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 3. Most of the time businessmen do not respond to the invitation for tender by TCB.

4. Some businessman wants to run their business with the government through the
collection of goods by TCB.

5. Most businessmen do not believe in TCB because of its incompetence.

6. At present they serve goods in the market purchasing from the businessman.
.
7. TCB cannot import so many goods compared to the demand. But sometimes their
impact exists in the market.

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 Discussion of the findings

TCB was established to influence in the commodity market in Bangladesh by controlling the
price of essential goods and importing and storing the goods that will be demanded in the
market. In the context of Bangladesh, this organization has become a inactive organization
because of its inefficiency and lack of government support.

Though the organization is doing some operations, it is not enough to meet the market demand.
It has done the activities including collecting sugar, oil, chhola etc. in current year which cannot
meet the demand of people of Dhaka city for one day. Sometimes it purchases goods more than
the market price.

Thus, it has failed to control the local market. If TCB wants to provide some goods in the
market, it is to depend on other businessman. So, these businessmen, not TCB, are controlling
the market.

The manpower of TCB is not enough to inspect the market regularly for taking decisions about
the steps to be taken.

In many occasions, TCB decides to stabilize market by supplying their stored products. But lack
of sufficient stock and cooperation of businessman, it fails to achieve its objectives.

TCB invited tender for the first time for importing sugar on the 17th April, 2007. It was estimated
to import 10000 ton sugar but TCB did not know that it was not possible to ship less than 12000
ton sugar. The lowest bidder did not permit to do the work. Not only sugar, there was not any
other product at TCB. TCB gave the responsibility to import soybean oil to two local companies
although TCB invited international tender.

TCB invited tender to import 100 ton chhola and onion on the 27th July, 2007. But there was not
any definite information to TCB when these goods would come. TCB had failed to import red
lentil for three years. It imported 3061 ton red lentil in the fiscal year 2006-07 for the last time.
After that no business person responded to TCB¶s tender.

TCB did not import any good in the fiscal year 2007-08. So far, TCB has bought 500 ton sugar,
at the rate of 33 TK. per KG, from Bangladesh sugar and food Education Corporation, 500 ton
soybean oil and 500 ton red lentil from the local market. That¶s all about TCB¶s collection from
the local market so far. It is very little compared to the demand. Like, 500 ton sugar can be sold
in Dhaka city within half a day.

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Not TCB, only the business persons can stabilize the price in the market. The commodity market
is centralized to few businessmen. Most businessmen do not believe in TCB because of the
incompetence of TCB. Most businessmen do not respond to the invitation of tender by TCB. The
activities of TCB were shrunk in 1989 by the excuse of open market economy. After that TCB
gradually became weaker to weaker. Now TCB do not have any capability of importing goods by
its own effort. At present they serve goods in the market purchasing from the businessman.

Some businessman does not want TCB to serve many goods in the market importing them. Some
businessman wants to run their business with the government through the collection of goods by
TCB. In these circumstances TCB cannot run their job actively.

TCB decided to sell 5 types of goods through dealer for the month of Ramadan. Wholesale price
of these goods were fixed in the following way-

Item Wholesale price Retail price Market price

Sugar(per kg) 40 37 56
chhola 50 47 60
Palm oil 58 54 65
Soybean oil 70 67 80
Soybean 76 73 95
oil(bottle)

Source: market survey

The demand for sugar in our country is approximately 12 to 13 lac ton. The sugar mills of our
country produced 79 thousands ton of sugar in the fiscal year 2008-09.

It is said from the last 7 months that TCB will import sufficient goods to stabilize the market.
But we confused about the capability of TCB. In fact, TCB is dependent on out sourcing.

We agreed from the beginning that it would be possible to make TCB strong. The activities of
TCB should be done in this way so that it can influence the market supplying products in the
market. Now we see that TCB could not be able to import such products.

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 Recommendation

1. Manpower of TCB needs to be increased and rationalized.

2. At present TCB board consists of chairman & one director. To make it more functional
at least two more directors need to be incorporated. Trading corporation of Bangladesh
order, 1972 (po no. 68 of 1972) to be amended.
3. Provision of taking approval for export or import from ministry of commerce need to be
exempted.
4. Since TCB has to compete with the private business entrepreneurs, some provisions of
PPR-2008 regarding procurement procedure need to be relaxed.
5. To increase the network of TCB abroad, the commercial counselors posted in foreign
embassies of Bangladesh can be entrusted to provide all trade related information to
TCB.
6. State trading with different countries through TCB can be starred.
7. Procurement of some seasonal crops like potato, maize etc. can be done as per price
fixed by the government. During price hike those can be sold at subscribed rate to
control price hike.
8. Training facilities both home and abroad for the TCB officials need to be created.
9. Special preference / facility has to be given to TCB for import of selected essential
commodities.
10.Total storage capacity of TCB need to be increased.
11.One oil refinery & one cold storage may be installed for TCB.
12.Public administration reforms commission¶s (PARC) recommendations can be
implemented.
13.These problems will be solved when the government of Bangladesh will be able to
interfere in the market effectively. To interfere in the market the government must have
the institutional capability and competence. It is the most important thing to keep the
latest information about the supply, demand and stock of commodities in the country
observing the local and international market regularly.
14.Whatever the debate regarding TCB, there is no alternative to increase its capability and
competence for the government. In these circumstances, the stock and supply of the
government will be made up even though it is limited. If there is any instability found in
the market, the government will be able to stabilize the market easily supplying from the
stock. Businessmen will know that the government has the ability to interfere in the
market. (Asaduzzaman Kibria, journalist)

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 Conclusion

Although TCB is not able to fulfill its objectives entirely, sometimes this organization
plays a vital role in critical moments like during the period of Ramadan, flood etc.
government should support and take care to accomplish its activities. Businessmen
should follow the rules and be cooperative to implement the objective of TCB.
It is necessary to determine whether government wants to use TCB as a commercial
organization or to intervene the market price. If government decides to use TCB as a
commercial organization it should be turned into a public limited company. On the other
hand, if the government want to use TCB to intervene market, the loss of TCB has to be
borne by the government like the Directorate of Food.

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References

1. Analysis from Center for Policy Dialogue, Dhaka (2007). Available at www.cpd-
bangladesh.org (access date: 1, December 2007).. 
2. www.tcb.gov.bd
3. Annual report of TCB, 2007-08
4. Bangladesh Economic review 2008-2009

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