Govt eyes 3cr litres of edible oil for subsidised sale
The government is set to approve the purchase of more than 3 crore litres of edible oil to supply at subsidised prices to low-income families across the country, as the Cabinet Committee on Government Purchase is scheduled to hold its first meeting under the Tarique Rahman-led administration on Wednesday, March 11.
Officials said the Ministry of Commerce will place a proposal at the meeting seeking approval to procure about 3.1 crore litres of edible oil, including rice bran oil and refined palm oil, through the Trading Corporation of Bangladesh (TCB).
The initiative aims to ensure the continued supply of essential commodities at affordable prices to nearly 1 crore low-income families under the government’s TCB Family Card programme.
According to officials at the Ministry of Commerce, the procurement plan includes around 1.8 crore litres of rice bran oil and about 1 crore litres of refined palm oil.
The rice bran oil will be purchased through several tenders, including proposals to procure 80 lakh litres in four lots and another 1 crore litres in five lots.
In addition, a separate proposal will seek approval to purchase around 1.3 crore litres of refined palm oil through the international open re-bidding method.
If approved, the refined palm oil will be supplied by the US-based company Powerhouse General Trading LLC. The company will import the oil from Indonesia and supply it in two-litre PET bottles. The proposed bid price for the palm oil shipment is $1.137 per litre, delivered to Chittagong and Mongla ports.
At that rate, the total cost for the 1.32 crore litres of refined palm oil would be approximately $10.48 million. In Bangladeshi currency, this amounts to about Tk 1.28 billion, calculated at an exchange rate of Tk 122.35 per US dollar.
Government estimates had earlier set the benchmark price for palm oil at $1.144 per litre. The selected bid is therefore $0.007 lower per litre than the official estimate.
After including customs duties, VAT, insurance, transport and other related expenses, the final cost per litre of oil up to TCB warehouses is expected to reach Tk 165.30.
According to TCB market data, the current average retail price of bottled refined palm oil in the local market is around Tk 180 per litre, meaning the government’s proposed purchase price is roughly Tk 14.70 lower per litre than the prevailing market price.
Officials said the edible oil will be distributed through TCB’s nationwide network to about 1 crore families, including beneficiaries in Dhaka’s city corporations and other parts of the country. Under the Family Card programme, low-income households receive essential commodities such as edible oil at subsidised prices.
A senior official of the Ministry of Commerce told Jago News that edible oil is being imported from the international market regularly to maintain an uninterrupted supply under the programme.
He said the current procurement is part of the government’s ongoing effort to ensure that low-income families continue to receive essential commodities at affordable prices through the TCB Family Card system.
Meanwhile, sources said the Cabinet Committee on Government Purchase may also consider several other proposals at Wednesday’s meeting.
Among them, the Local Government Division may seek approval for the second verification of a package under a project titled “Construction of a 1,490-metre-long PC Girder Bridge over the Teesta River on the road connecting Panchpir Bazar and Chilmari Upazila headquarters in Sundarganj of Gaibandha,” which is being implemented by the Local Government Engineering Department (LGED).
In addition, the Power Division may place a proposal to purchase electricity from the gas-based Siddhirganj power plant built by the Electricity Generation Company of Bangladesh Limited (EGCB).
Officials said the proposals will be reviewed during the meeting as the government moves forward with several key procurement and infrastructure initiatives.