TCB plans AI-based market intelligence, storage expansion

State-run Trading Corporation of Bangladesh (TCB) Chairman Brigadier General Mohammad Foyshol Azad has said the corporation is preparing to introduce an AI-based market intelligence system to predict price movements, identify potential shortages and improve coordination across the country's essential commodity supply chain.

"A system that can tell us where a disruption is taking place or where one may occur would be extremely useful for TCB," he said.

In a recent exclusive interview with BSS, Foyshol said the initiative is being developed as part of Commerce Minister Khandakar Abdul Muktadir's broader plan to establish an AI-based system for analysing market trends and supply-chain movements. "So, its pilot will be conducted through TCB, Insha Allah," he said.

He cited the rise in green chilli prices earlier in August as an example, saying that TCB sometimes learns about sudden price increases only after they have already occurred.

"An AI-based system could analyse factors such as rainfall, transport disruptions, production, imports, prices and supply flows and provide early warnings," he said.

A core committee comprising representatives from TCB, the Commerce Ministry, the Food Ministry, the Agriculture Ministry, Bangladesh Bank and other relevant agencies has already held several meetings on the proposed system.

"Once the terms of reference (TOR) are finalised, we will proceed with the tender process to appoint a company for the project," he said.

The chairman said better inter-ministerial coordination is also essential because different government agencies are responsible for different commodities. Regular coordination meetings led by the Commerce Ministry are held to monitor prices and supply.

Foyshol said TCB often intervenes in commodities outside its regular mandate when the government considers it necessary. For example, the corporation has previously sold potatoes and procured onions despite these commodities falling primarily under other ministries.

Regarding operational challenges, he identified manpower shortages, financing costs, storage limitations and dependence on district administrations as major constraints.

TCB currently has around 275 employees, while its annual procurement has risen sharply. The corporation purchased around Tk5,500 crore worth of commodities last year and plans procurement of about Tk8,000 crore in this fiscal year.

He said TCB is working to expand its organisational structure and establish offices in around 21 locations to meet its growing responsibilities.

The corporation also needs specialised manpower for new activities such as market-based procurement, profitable sales and AI-based market analysis.

Terming financing as another challenge, Foyshol said the TCB generally receives government loans to finance its procurement operations, while delays in receiving subsidy funds can increase its interest burden.

The chairman said TCB has proposed allowing it to obtain loans from private commercial banks as well as state-owned banks. "Private banks can sometimes offer lower interest rates, which could help reduce financing costs and ultimately lower the government's subsidy burden,"

He also called for changes in VAT provisions affecting traders who supply imported commodities to TCB. At present, traders sourcing commodities from abroad may face additional VAT costs compared with domestic producers.

"If this issue is resolved, more suppliers will be able to participate, competition will increase and thus procurement prices could come down," he said.

He said increasing the number of eligible suppliers would also reduce dependence on a limited number of domestic producers.

On infrastructure development, the TCB chairman said TCB is planning new warehouses and redevelopment of several old facilities. A new warehouse is planned in Uttara, while some old TCB buildings will be redeveloped through public-private partnership (PPP) arrangements.

The corporation is also expanding its own storage capacity by around 10,000 metric tons, which will gradually reduce expenditure on rented warehouses.

He said TCB has already moved substantially towards an automated supply chain. The introduction of POS machines and a new mobile application will further improve transparency and consumer convenience.

The chairman also defended the new dealer-selection process, saying it is based on government guidelines, scrutiny by district administrations and an online lottery system.

Under the new arrangement, one dealer is planned for every 1,500 smart-card holders. He said the system has been designed to minimise opportunities for outside intervention.

"Once the applications are scrutinised, eligible applicants are selected through an online lottery. There is no scope for intervention in the selection process," he said.

He said TCB is also keeping truck sales as an emergency market-intervention mechanism rather than a regular operation. Such sales may be resumed if prices rise sharply or during periods of exceptional demand, such as Eid.

Looking ahead, he said TCB's priority is to keep essential commodities available at affordable prices, maintain quality and reduce the need for government subsidy through competitive procurement and efficient operations.

"We won't compromise on quality," he said.

He said TCB would continue introducing new products based on consumer surveys and demand.

"Our objective is not to force consumers to buy these products. They are optional. If people need them, they can buy them at lower prices," the chairman said.

He expressed optimism that the ongoing reforms, automation, AI-based market intelligence, improved procurement and infrastructure development would make TCB more efficient and strengthen its role in maintaining stability in the essential commodity market.