Editorial
TCB role in import of essential items
Key is to ensure a smooth distribution system
The move by the government to relax rules for the Trading Corporation of Bangladesh (TCB) to import six essential items is a measure of the priority being given to consumers' needs. Finance Minister A.M.A. Muhith clearly puts matters in perspective when he notes that a quick import of the items --- pulses, edible oil, sugar, grams, onions and powdered milk --- means that the government wants to be ready for Ramadan, obviously a time when consumers are generally put to great difficulties owing to an unnatural hike in prices. The fact that the TCB is once again being brought into the picture indicates a proactive role for the body after a long interval. That the government has embraced the idea of the TCB getting robustly involved in the task of ensuring market stabilisation speaks of the seriousness with which the authorities view the existing market conditions.
What is also important here is that even as the TCB comes back into the supply side of the economy, the private sector will continue importing the afore-mentioned items. A good step in this regard is a promised simplification of the procedures relating to imports by the private sector. So what will likely happen is a complementarity of work between the public and private sectors. The resultant competition (and the economy works best when competitive factors are there) should naturally lead to a decline in the local prices of items of daily necessity. Now, prices are of critical importance, given the fact that when they go up globally, local consumers run into great difficulties. And yet there is the other side of the picture where Bangladeshi consumers are concerned: when prices go down internationally, the same is hardly reflected in the local market. But, as commerce ministry officials point out, every time prices go up in the world market, businessmen in Bangladesh swiftly go for a hike in prices at home. Small wonder that bodies like the TCB have to be brought in.
By far the most important point about the TCB-related move is to have in place an elaborate and workable distribution system for the goods imported. That will be key to the entire programme. The fact is that at this point the TCB is not in a very healthy state. Its old network of agents and distributors is not there. A crucial first step, therefore, must be the establishment of outlets and the appointment of dealers. It is a job where only professional criteria must be applied, without any hint or taint of political bias and in transparent manner. Once that is ensured, it will be a good idea to have an inter-ministerial oversight body in place to monitor purchase patterns and distribution process of the goods through the TCB.
A smooth procurement and a quick supply of goods depend on the presence of a strong, dynamic distribution system. Ensure that and everything else will fall into place.
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