The Trading Corporation of Bangladesh (TCB) is likely to count huge losses as 894.621 million tonnes of lentil have started rotting in its warehouse, according to a source familiar with the matter.
This large volume of lentil has been stored in the TCB warehouse for a long time. As a result, they are gradually becoming unfit for consumption, the source added.
He also said fumigation/gas tablets have been used frequently to protect the lentils from pest attacks, but such practice is causing the quality of the lentils to deteriorate. So, consumers are reluctant to buy the food item.
The state-run corporation will have to witness a loss of around Tk 50 million if the lentils, now being infected with fungus, are not released from its warehouse soon, said another source at the TCB.
Not only lentil, some 1257.43 tonnes of sugar have also been remained stored in the TCB's warehouse.
When contacted, TCB Chairman Brig Gen Md Hasan Jahangir declined to make any comment in this regard.
Asked, TCB spokesperson Md Humayun Kabir said, "We have sent a proposal to the commerce ministry recently to reduce the prices of lentil. But the proposal is yet to get approval."
New procurement season for TCB is going to start soon. Besides, the TCB wants to sell the lentils before the end of its life cycle, he said.
The corporation, which gets subsidy from the government, counts huge financial losses every year, said a commerce ministry official.
The government provided the state-run agency with about Tk 3.76 billion in subsidies, including interest, between fiscal years 2010-11 and 2015-16, according to the TCB.
But the trading agency could not make any visible impact with regard to keeping the prices of essentials stable or at a tolerable level for the common consumers even after receiving a large amount of subsidies every year, the official said.
Earlier, TCB reduced the prices of some essential items.
Recently, it has sent a proposal to the commerce ministry to cut the prices of two items -- lentil and sugar.
TCB has proposed lowering the price of lentil to Tk 44 per kg from Tk 55 and the price of sugar to Tk 47 per kg from Tk 55.
The TCB will require Tk 30.7 million as subsidy if it sells the two items at the proposed rates, said the commerce ministry official.
However, prices of soybean oil will remain the same at Tk 85 per litre.
The TCB sells sugar, soybean oil, red lentils, grams and dates through dealers at subsidised rates as part of its intervention into the market.
Some 2,790 dealers are listed with the TCB across the country, according to the state-run agency that works towards keeping the prices of essential commodities stable and supplying them at affordable prices to the consumers.
