Effects of Tcb on the Economy of Bangladesh

Topics: Market, Capitalism, Free market Pages: 10 (2693 words) Published: December 22, 2010

I would like to thank our honorable teacher for arranging such a good session and allowing me to take this topic for term paper. His special guidance has made it successful to prepare this document. I would like to convey my special gratitude to the authority of the Department of Business Studies for designing this course outline.




What is TCB1

Economic Condition of Consumers2

Present Price Situation of Consumer Goods Market3

Reasons of Price Hike3

International Price Change3
Price Rise of Oil (Fuel)4
Stockiet’s Activity4
Delay in Supply Channel5
Special Events5
Cumulative Action5

Types of Price Change5

One Shot Price Change6
Continuous Price Change6
Special Events6

Activities of TCB6

OMS (Open Market Sale)6
Distribution through Selected Dealers7
Monitoring Market Price7
Procurement of Essential Goods7
From International Market7
From Local Market8

Effects of TCB on Our Economy8

Positive Effects8
Negative Effects9

Findings and Recommendations9



Trading Corporation of Bangladesh, which is abbreviated as TCB, came into existence in the after-war situation of Bangladesh after liberation in the year of 1972. At that time market of Bangladesh was suffering from lack of supply of essential goods and industrial raw materials because of unstable situation. People of Bangladesh were not ready to invest for importing such goods and the Government policies had not yet been formulated in regards of export-import business. So the then government of Bangladesh had to intervene the consumer goods market as well as the industrial raw materials market. It was an aid to nurture the newborn economy of Bangladesh so that internal production industries could boost up and price of consumable goods would not go beyond reach of general people. As the supply chain was not yet built TCH played important role to make essential goods easily available to the consumers at reasonable price. Still TCB is playing such role in Bangladesh to establish a channel through which goods can be easily made available to the consumers in awkward situations.


✓ To understand the role of TCB in consumer goods market. ✓ To investigate possible reasons of price hike in the consumer goods market. ✓ To investigate impacts of TCB both positive and negative on consumer goods market.

What is TCB

TCB, the national trading house under the Ministry of Commerce of the Government of the Peoples Republic of Bangladesh, is an autonomous body headed by a chairman and the administration of this trading house lies on the Board of Directors, which comprises two Directors. All of these members are deputed from the BCS cadre officers’ pool.

Though TCB was established in the backdrop of all round scarcities of essential consumer items and industrial raw materials after the liberation of Bangladesh now it works with some extension of role. TCB is run commercially and sometimes intervening the market during sky rocketing of price of essential commodities or crisis period or during some special events (like the holy Ramadan or disaster) with a view to keeping it within the reach of general mass.

Principal roles played by TCB are as given below.
✓ To carry on business of imports and exports in accordance with the policy of the Government. ✓ To arrange for the sale and distribution of the imported/locally procured goods and to appoint dealers etc., for this purpose as per Government directives. ✓ Monitoring of prices of essential commodities in the local market vis-a-prices in the international market. ✓ Market intervention during price hike in the local market. ✓ To do all other acts and things connected with or ancillary thereto.

Economic Condition of Consumers

Bangladesh is a developing country. It’s economy is mainly based...
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