TCB’s Income Deficit Soars 460% Amid Expanded Food Aid

The Trading Corporation of Bangladesh (TCB) saw its income deficit surge nearly 460 percent in the last fiscal year, largely due to increased distribution of essential goods to low-income households during a period of high inflation.

According to the Bangladesh Economic Review, TCB’s deficit reached Tk 7,876 crore by the end of FY2024-25, almost six times higher than the Tk 1,406 crore recorded the previous year.

Typically published in June, the finance ministry released the review recently to include full-year data rather than half-year figures. The report also changed its terminology, using “surplus” and “deficit” instead of “profit” and “loss” for state-owned enterprises, noting that many of these organizations are not intended to operate solely for profit.

Among government entities, TCB recorded the second-largest deficit last fiscal year. The Bangladesh Power Development Board (BPDB) led the list with a deficit of Tk 8,803 crore, a slight increase from the previous year but below the Tk 11,163 crore shortfall of FY2022-23.

TCB spokesperson Md Shahadot Hassin said the corporation received about Tk 2,800 crore in government subsidies last year, reflecting the agency’s expansion to serve 1 crore households. Since 2022, TCB has shifted from selling via trucks to distributing subsidized food essentials through family cards.

“We are not aiming to make a profit but to support low-income families,” Hassin said. The corporation sells goods below procurement cost, making it reliant on government funding to sustain operations.

Inflation stood at 8.29 percent in November, remaining high for more than two years, which continues to strain households, particularly those with low or fixed incomes.

Some economists say TCB’s growing deficit also highlights inefficiency and mismanagement. M. Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, acknowledged that while TCB’s support for low-income families explains part of the deficit, operational inefficiencies and leakages contribute to losses across many state-owned firms.

Other state-run organizations, including Bangladesh Sugar and Food Industries Corporation, Power Grid Bangladesh, West Zone Power Distribution Company, and Dhaka Electric Supply Company, also reported deficits exceeding Tk 200 crore. Reaz suggested that the government should reassess the framework of state-owned enterprises, strengthen financial discipline, and consider partial privatization as a solution.

Overall, the combined surplus of all state-owned enterprises fell 13 percent year-on-year to Tk 45,330 crore. Titas Gas generated the largest surplus at Tk 35,298 crore, a 2 percent increase from the previous year, followed by Bakhrabad Gas Distribution Company with Tk 5,162 crore. The Bangladesh Telecommunication Regulatory Commission ranked third despite a 23 percent drop in surplus to Tk 3,187 crore.

Other notable surpluses above Tk 2,000 crore came from Pashchimanchal Gas, Chittagong Port Authority, Bangladesh Petroleum Corporation, and the Civil Aviation Authority of Bangladesh. The Chittagong Port Authority’s surplus has grown steadily since FY2018, rising from Tk 509 crore in FY2021 to Tk 2,297 crore in FY2025. Meanwhile, Bangladesh Petroleum Corporation’s surplus declined by 48 percent to Tk 2,050 crore, although it remained in the black after posting a deficit of Tk 1,983 crore in FY2022.