The government yesterday decided to buy edible oil and lentils worth Tk 350 crore from five local firms in order to sell them among the poor and low-income people at subsidised rates.

City Edible Oil Ltd, a concern of commodity major City Group, will supply 11,000 tonnes of soybean oil to state-run Trading Corporation of Bangladesh (TCB) at Tk 168 crore, according to a decision by the cabinet committee on government purchase.

This means each litre of the popular cooking oil will cost Tk 152.98, which is higher than the previous purchase rate of Tk 155.57.

Sena Kalyan Sangstha and Nabil Naba Food Ltd will supply 5,000 tonnes of lentils each. The total value of the contracts is Tk 102.75 crore.

The committee also approved the bids of Majumder Bran Oil Mills Ltd and Majumder Products Ltd to sell 50 tonnes of rice bran oil to the TCB. The government will spend Tk 76 crore for the products.

The consent came after the commerce ministry placed the purchase proposals at the cabinet committee.

TCB now sells edible oil, lentils, onions, chick peas and dates among the low-income people at below the market prices so that they can afford the items.