The government has issued Tk 5.8 billion in state guarantees in favour of the Trading Corporation of Bangladesh (TCB) to facilitate the procurement of essential commodities

The government has issued three state guarantees amounting to Tk 5.80 billion in favour of Sonali Bank to support the Trading Corporation of Bangladesh (TCB) in procuring essential commodities, sources said.

The state-run TCB, under the Ministry of Commerce, plans to purchase large quantities of key essentials to help stabilise the domestic market. The items include 5,000 tonnes of lentils through local tenders, 22 million litres of palm olein via local tenders, and 25,000 tonnes of sugar through international tenders, according to officials.

This initiative is part of the government’s broader effort to ensure an uninterrupted supply of essential goods and curb price volatility through its trading arm. The state guarantees have been issued to Sonali Bank’s Foreign Branch in Motijheel, an official source said.

To ensure financial discipline and transparency, the Finance Division of the Ministry of Finance has imposed a number of strict conditions on the facility. The counter-guarantees will remain valid for one year from the date of issuance.

Under the conditions, TCB must promptly inform the Finance Division after each instalment payment of the proposed Loan against Trust Receipt (LTR), including details of any outstanding liabilities. Updated information on outstanding balances must be submitted to the Finance Division by the 7th of every month until the loan is fully settled.

Officials said all procurement must strictly comply with existing national procurement laws and regulations, with full transparency and accountability to ensure competitive pricing. The funds are also required to be used primarily to clear outstanding dues if TCB receives government subsidies.

The procured essential items will be sold to around 10 million smart card-holding families under TCB programmes. The government has been running monthly nationwide sales drives of key essentials at subsidised prices.