1

A
Project
On
Commodity Boards of India

(On partial fulfillment of paper

“International Marketing”
For

BBS 5th semester

Den Dayal Upadhyaya College
University Of Delhi

Submitted to
submitted by Dr. Rakesh kumar
Keshav Jha
Deptt. Of Business studies
07/B.B.S /7023
DDU College 5th
semester
2

OCT OBER 2009

Content
Page Topic
1 Cover page
2 Content
3 Acknowledgement
4 Declaration
5 Objective
6 Introduction
7 Overall function
8-12 Tea board
13-16 Coffee Board
17-19 Rubber board
20-22 Coconut board
23-25 Spice board
26 -27 Tobacco Board
28-31 Coir Board
32 -34 Silk Board
35 conclusion
36 Bibliography
3

Acknowledgemen
ts
Working on the project “Commodity Boards of India” has been very
pleasurable and enjoy activity. While completing the project, I have incurred
great many debts. I wish to express my gratitude to all of them.
Firstly, I would like to thank my teacher Dr. Rakesh Kumar who not
only guided me to give a practical touch to the project but also helped a lot
in standardizing my research work. I am also indebted to Mr. Pankul Gupta
for continuously provoking me to complete the project.
It would have been very difficult to do this work but for the ever
supportive library staff of DDU college (esp. Mr. Bharat Bhusan and Mr.
Hari Om), British council library.
Last but not the least my mother has been foundation for all my work.
Despite the contribution of all mentioned above, needless to say, if there are
any lapses in my work, I myself take responsibility of them.
We’ve left others’ value excluded; you’ve offered unbeatable
learning, affected untold reflections, all implicitly or naturally
acknowledged.

KESHAV JHA
4

Declaration

We hereby declare that this project has been done only by us and is
not been copied from anywhere. All the resources are properly mentioned in
bibliography. If found guilty, proper disciplinary action may be taken
against us.

……………
Keshav Jha
5

Objective
1. To discuss the importance and need of Commodity Boards, their constitution
And functions; and
2. To explain in detail with respect to promotion, services and assistance, these
Boards extend to the different plantation commodities
6

Introduction
There are five statutory Commodity Boards under the Department of Commerce,
Government of India. These Boards are responsible for production, development and
export of tea, coffee, rubber, spices and tobacco. Coconut development Board is also an
autonomous body which functions under the Ministry of Agriculture, Govt. of India.
Commodity Boards help their members in product development, product innovation and
technology up gradation. They assist exporters with overseas marketing, exchange trade
delegati6ns and provide information on export-import policies. They conduct research,
Formulate policies to promote production and trade, facilitate acquiring of Trade Marks
and Geographical Indications; certification services providing licenses for trading etc...
7

OVERALL
FUNCTION
 To take up various problems, points, suggestions to the States / Central
Government and semi-Government Bodies.
 To take up issues with the Export Promotion Organization - EPCs, Commodity
Board, FIEO, ITPO, Various Government Ministries and Departments for
making easy participation in the Fairs and Exhibitions organized in India and
Overseas.
 To make efforts for creation of transparency in the function of the EP
Organization-EPCs, Commodity Board, FIEO etc.
 To organize Seminars and Meetings at various places to discuss ways and means
to overcome problems and difficulties of the member-exporters / exporting
community.
 To invite Government officials , officials of EP Organizations and Dignitaries at
the meetings / Seminars for facilitation and resolving problems relating to
exports of the member exporters / exporting community.
 To publish brochures, booklets containing useful information for member
exporters, foreign buyers/buying agents etc.
 To distribute the brochures, booklets, directories etc. at the time of fair and other
occasions for the benefits of member exporters.
 To set up International Trade Centers and Flatted Factory Complex (Industrial
Parks).

 To unite exporters to take common cause / issues with the concerned

Organization ,Foreign Embassies and Foreign Mission in India and Foreign
8

Trade Offices in India and Indian embassies / High Commissions overseas etc

1. TEA BAORD OF
INDIA
Tea is one of the industries which by an Act of Parliament, comes under the control of
the Union Govt. The genesis of the Tea Board India dates back to 1903 when the Indian
Tea Cess Bill was passed. The Bill provided for levying a cess on tea exports the
proceeds of which were to be used for promotion of Indian tea both within and outside
India.

The present Tea Board set up under section 4 of the Tea Act 1953 was constituted on 1st
April 1954. It succeeded the Central Tea Board and the Indian Tea Licensing Committee
which functioned respectively, under the Central Tea Board Act, 1949 and the Indian Tea
Control Act, 1938 that were repealed. The activities of the two bodies had been confined
largely to regulation of tea cultivation and export of tea as required by the International
Tea Agreement then in force, and to promotion of tea consumption.

The Tea Board of India was established under the Ministry of Commerce in 1953 by an
Act of the Parliament. It is meant to implement the Government's regulations and policies
for the overall functioning of the tea industry.

The roles of the Board are defined by the provisions of the Tea Act. It is primarily
concerned with the development of the tea industry and trade of tea. Other major
concerns are:
9

• extension of area under tea cultivation,

• research activities for quality improvement of tea and cultivation methods,
• promotion of exports, other licensing activities aimed at containing
• adulteration and other undesirable activities, and
• Interceution on behalf of workers for adoption of welfare measures etc...

STAKEHOLDERS OF TEA BOARD

The present Tea Board is functioning as a statutory body of the Central Government
under the Ministry of Commerce. Tea Board of India is headed by the Chairman
appointed by the Government of India with Headquarter at Kolkata. The Board is
constituted with 31 members (including Chairman) drawn from Members of Parliament,
tea producers, tea traders. Tea brokers. Consumers. And representatives of Governments
in the principal tea producing states like Assam, West Bengal, tripura, Tamil Nadu,
Kerala, Himachal Pradesh and also trade unions. The Board is reconstituted every three
years.

CONSTITUTION OF TEA BOARD

The Tea Board is represented by 31 members as stated above. In addition Tea Board has
the following standing committees:
• Executive Committee: This Committee deals with the administrative matters of
the Board.
• Export Committee: The Export Promotion Committee deals with the work in
relation to the export promotion of tea.
• Labour welfare Committee: Guides the Board in the implementation of
various welfare schemes for the benefit of the plantation workers and their wards.
• Development Committee: Is responsible for overseeing the various
developmental schemes run by the Board.

ROLE OF TEA BOARD

10

Roles of Tea Board are defined in the Tea Act. The focus of the Board is directed
towards development of the tea industry and trade especially in the spheres of
production, extension of area under tea cultivation, improvement in the quality of tea,
promotion of co-operative efforts of growers, research and development efforts in tea,
undertaking promotional campaigns for increasing export of tea and regulatory functions
such as issuance of Exporter's License, Tea Waste License, Tea Warehousing License,
etc. Tea Board also plays a major role in the collection of tea statistics and in the
adoption of a few welfare measures for workers of tea gardens which are not covered
under statutory provisions such as the Plantation Labour Act, 195 1. The functions of the
Tea Board are
Outlined in Section 10 of the Tea Act.

FUNCTIONS OF TEA BOARD

Primary Functions: The Tea Board has wide functions and responsibilities under the
direction of the Central Government. Briefly the primary functions of the Tea Board are:
- rendering financial and technical assistance for cultivation, manufacture and
marketing of tea,
- export Promotion,
- aiding Research and Development activities for augmentation of tea production
and improvement of tea quality,
- extend financial assistance in a limited way to the plantation workers and their
wards through labor welfare schemes,
- encourage and assist both financially and technically, the unorganized small
growers sector,
- collection and maintenance of statistical data and publication, and
- Such other activities as are assigned from time to time by the Government of
India.
General responsibilities
11

- Establishment and other Administrative work and Co-ordination of the activities

of various departments of the Board's Office and also with the Ministry of
Commerce & Industry, Govt. of India, are directly dealt by the Secretariat.
- The Development, including the administration of the Financial Assistance
Scheme and Assistance to the industry for procurement, distribution and
movement of essential input is under the charge of the Director of Tea
Development.
- Finance including accounts and internal audit is under the charge of Financial
Adviser and Chief Accounts Officer.
- Research, both agricultural and industrial, is under the charge of the Director of
Research.
- Regulation of production and export including issue of Export License and
implementation of the Tea Waste (Control) Order are under the charge of the
Controller of Licensing.
- Marketing including promotion of tea in India and abroad is under the charge of
the Director of Tea Promotion (HQ).
- Labor Welfare is under the Charge of Welfare Liaison Officer, North.
- Collection of Statistics including cost studies is under the charge of the
Statistician.
- Legal matters arising in various functional departments mentioned above are
handled by the Law Consultant.
- Implementation of the provisions of Official Language Act and various measures
in this respect are handled by the Deputy Director (Hindi).

Research functions of Tea Board

Research Directorate keeps liaison with research institutions in North-India (TRA) and
South India (UPASI). These tea research institutions are funded by Tea Board from Plan
Budget in terms of funding formula as agreed to between Tea Board and Research
Institutes, and approved by Ministry of Commerce. This apart, Tea Board has its own
Research and Development Centre in Darjeeling (DTR&DC). This centre is especially
set up to look after the specific interests of Darjeeling Tea Industry. Various research
12

programmes are formulated by the Tea Research Directorate for the DTRC. Besides,
various research institutions including Universities are also funded by Tea Board where
they have a prominent role to play. Research proposals of these institutes are placed
before Ad-hoc Tea Research Committee with eminent scientists as its members for
approval of the proposal or otherwise including the modification of the proposal and even
extension of the existing research projects, if so needed. The schemes require approval of
the Ministry of Commerce & Industry before its implementation. Progress of the schemes
is by the Directorate of monitored Research as well as by Ad-hoc Tea Research
Committees.

EXTENSION FUNCTIONS OF TEA BOARD

Development and Promotion oriented matters, it may be pointed out that these two
departments, particularly Development Department is the livewire of the Board.
Development Department monitors the various schemes concerning the tea development
in respect of improvement in production in terms of quantity and quality both for big and
small growers sectors. The schemes are formulated by the Development Directorate in
consultation with Executive Directors located in North-East and South India as well as
producers’ Associations. Once the scheme in terms of concerned policy is drafted out, it
Needs the final approval of Chairman after which the schemes proposed is placed to
Development Committee of the Board. Once approved, they are conveyed to the Ministry
of Commerce and Industry for final clearance before their implementation by the said
Directorate of Tea Board through its offices located in various tea growing regions of the
country.
13

2. COFFEE
BOARD
The Coffee Board (Indian Coffee Market Expansion Board till 1948) is the lineal
successor of the Indian Coffee Cess Committee, the First Statutory All India
Organization of the Indian Coffee Industry constituted by the Government of India, in
response to the unanimous request of all Coffee Interests for an Organization and funds
of their own for the improvement of the industry. The Coffee Board is a Statutory Body
under the Coffee Act of 1942 (Act of 1942) having perpetual succession and a common
seal, with powers to acquire and hold property, to contract and to sue and to be sued.

STAKEHOLDERS OF COFFEE BOARD

The Board consists of a Chairman appointed by the Central Government and 32

Members representing the various interests as provided under Section 4(2) of the Coffee
Act read with Rule 3 of the Coffee Rules, 1955. The different Members of the Board
besides chairman are nominated from the Members of Parliament, representatives of
Government of major coffee growing states, representatives from other states,
14

representatives of large coffee growers, representatives of small coffee growers,

representatives of coffee trade interest, representatives of coffee curing establishments,
representatives of labour interests, representatives of consumer’s interests, and
representatives of instant coffee
Manufacturers, and representatives from among eminent personalities in the
Filed of research/marketing/management/promotion of coffee.

CONSTITUTION OF COFFEE BOARD

The Coffee Board of India is an autonomous body functioning under the Ministry of
Commerce and Industry, Government of India. The Board serves as a friend, philosopher
and guide of the coffee industry in India. Set up under an Act of the Parliament of India
in the year 1942, the Board focuses on research, development, extension, quality
upgradation, market information, and the domestic and external promotion of Indian
coffee. Till 1995, the Coffee Board had a monopolistic control over the marketing of
Coffee in India. However, the winds of liberalization swept the Indian coffee industry
and since 1995, marketing of coffee is strictly a private sector activity. In fact the Coffee
Board went through a massive down-sizing and two-thirds of its employees were retired
under a voluntary retirement scheme. The Coffee Board conducts basic and applied
research on coffee and can boast of 75 glorious years in coffee research. The Central
Coffee Research Institute in the Chickmagalur district, Karnataka State, has been in the
forefront of coffee research over the years and continues to remain one of the premier
Institutes in the world as far as coffee research are concerned. The Research Department
publishes various journals and periodicals. It also offers various services to growers and
exporters.

ORGANISATIONAL SETUP OF DIVISIONS, FQCTIONS AND

DUTIES

The Secretariat: deals with the entire staff related and office establishment matters. It
also deals with convening of meetings of the Board and the statutory committees,
administration of funds allocated under Labor welfare measures for the benefit of
15

children of plantation laborers and allocation of funds for construction/maintenance f

hospitals/schools in plantation areas.

Research Department: Undertakes research in plant breeding, cultural operations and

rendering advisory services to the planting community. The personnel in the Research
Department mainly comprise of scientific officers in the respective disciplines.
Analytical Lab and Quality Evaluation Centers are the other wings of Research
Department.

Extension and Development Department: Anchored between the Research fraternity

and the coffee growers focused on transfer of coffee technologies standardized by the
research scientists to the growers for achieving improved levels of production
/productivity and also to enhance quality of coffee in line with the objectives envisaged
in the plan for coffee development. It also renders assistance to planters in the various
facets of coffee cultivation.
Promotion Department: Promotes the consumption of coffee in India and abroad
through various measures. The following are the wings of Promotion Department (a)
Market Promotion section (b) Indian Coffee Section.

Exports and Marketing: Board performs the role of a facilitator to the coffee industry
in respect of export promotion. The following are the wings of the Marketing Department
(a) Exports Section (b) General Section (c) Market Intelligence Unit.

Accounts and Finance: This department is in charge of administration/ allocation of

funds of the Board. The Wings of Accounts and Finance department are (a) Plan Fund
Accounts (b) Non Plan Fund Accounts (c) Budget Section (d) Internal Audit party (e)
Development Accounts (f) Pension Section (g) Pool Fund Accounts.
GENERAL FUNCTIONS
• Implement development plan programs like replanting, new planting and quality
up gradation,
16

• Carryout export promotion activities like participation in overseas trade fairs,

organizing visit of roaster delegations to Indian Coffee tracts and cupping
sessions,
• Take up domestic promotion efforts involving the private sector to expand
domestic consumption,
• Establish and develop database on all aspects of the industry,
• Dissemination of market information on a regular basis to various segments of
the industry,
• To give policy formulation advice to Government and the self regulated industry,
• Provide necessary support to the planters in crisis and carryout necessary labor
welfare measures,

• Conduct training programs which aim to develop and provide qualified cup
tastes to various segments of the industry,
• Carry out necessary steps for the improvement of coffee quality,
• Act as the recognized spokesperson on behalf of the coffee industry to the
Government, media, trade and general public; and to guide the overall growth
and development of the coffee industry in the Country, and
• Represent the Indian Coffee industry in the International Coffee forums viz.,
International Coffee Organizations, Specialty Coffee Associations and work
with them for the benefit of coffee industry.
17

3. RUBBER
BOARD
After the World War 11, there were growing demands from the rubber growers for
setting up a permanent organization to look after the interests of the industry. Thereupon,
the Government of India set up an ad-hoc committee in 1945 to study the situation and to
make appropriate recommendations. On the recommendation of this ad-hoc committee,
the Government passed the Rubber (Production and Marketing) Act, 1947, and the
"Indian Rubber Board" was constituted forthwith to provide for the overall promotion
and development of the sector under its guidance and control. As envisaged in the Act,
the Indian Rubber Board was set up as a statutory organization responsible for asisting
the government in the implementation of the various provisions of the Act. The Act
which came into force in 1947 has since undergone many amendments. The Rubber
production and Marketing (Amendment) Act of 1954 which took effect on August 1,
18

1954 made some important changes in the constitution of the Board and renamed as The
Rubber Board. It clearly defined the role of the Board in the development of the industry
and in formulating and implementing necessary research and development programmers.
This was followed by notification of the Rubber Rules, 1955 laying down guidelines for
the Board to follow in carrying out the purposes of the Act. The rules have been
subjected
To need based amendments from time to time. The Rubber (Amendment) Act of 1960
made certain alterations in the rate and procedure of collection of cess on rubber. The
Rubber (Amendment) Act of 1982 provided for the Central Government to appoint a part
time or whole time Chairman for the Board and if necessary, an Executive Director for
Exercising such powers and performing such duties as may be prescribed or delegated to
him by the Chairman. The 1994 Amendment refixed the maximum rate of cess that can
be levied on rubber.

RULES AND REGULATIONS

The Rubber board functions under the Ministry of Commerce & Industry of the
Government of India. The Board has a Chairman appointed by the Central Government.
He is the principal executive officer responsible for the proper functioning of the Board
and implementation of its decisions and discharge of its duties under the Rubber Act.
There are 26 other members of the Board consisting of: two members to represent the
State of Tamil Nadu. One of them shall be a person representing rubber producers,
Eight members to represent the State of Kerala. five of them shall be representing the
rubber producing interest, three of such being persons representing the small growers,
ten members to be nominated by the Central Government, two of whom shall represent
the manufacturers and four labor, three members of Parliament two whom shall be
elected by the House of the People and one by the Council of States, Rubber Production
Commissioner of the Rubber Board (ex-officio), and Executive Director (ex-officio).
One of the members is elected as Vice-Chairman on an annul basis. The Board meets
periodically for transacting business.
19

ORGANISATIONAL HIERARCHY IN RUBBER BOARD

The activities of the Board are classified under nine departments’ viz.,
Administration, Finance & Accounts (F&A), Rubber Production (RP), Research,
Processing & Product Development (P&PD), Statistics & Planning (S&P), Training,
Licensing & Excise Duty (L&ED) and Market Promotion. Publicity and Public
Relations (P&PR) Division, Vigilance Division and Internal Audit Division although
grouped under Administration and Finance & Accounts Department, for general
purposes, function directly under the Chairman. The Board has its headquarters at
Kottayarn in Kerala State.

GENERAL FUNCTIONS

The functions of the Board as defined under the Act are:

a) It shall be the duty of the Board to promote by such measures as it thinks fit, for the
development of the rubber industry.
b) Without prejudice to the generality of the foregoing provision, the measures
referred to therein may provide for:

• undertaking, assisting or encouraging scientific, technological and economic

research,
• training students in improved methods of planting, cultivation, manuring and
spraying,
• providing of technical advice to rubber growers,
• improving the marketing of rubber, the collection of statistics from owners of
estates, dealers and manufacturers,
• Securing better working conditions and the provisions and improvement of
amenities and incentives for workers, and.
• Carrying out any other duties which may be vested in the Board under rules
made under this Act.
20

c) It shall also be the duty of the Board to:

• advise the Central Government on all matters relating to the development of the
rubber industry including the import and export of rubber,
• advise the Central Government with regard to participation in any International
Conference or schemes relating to rubber,
• submit to the Central government and such other authorities, as may be
prescribed, half-yearly reports on its activities and the working of this Act,
• And prepare and furnish such other reports relating to the rubber industry, as may
be required by the Central Government from time to time.

4. Coconut
Development
Board (CDB)
21

Coconut Development Board (CDB) is a statutory body established by the Government

of India for the integrated development of coconut production and utilization in the
country with focus on productivity increase and product diversification. The Board which
came into existence in 198 1, functions under the administrative control of the Ministry
of Agriculture and cooperation, Government of India, with its Headquarters at Kochi in
Kerala and Regional Offices at Bangalore (Karnataka), Chennai (Tamil Nadu) and Patna
(Bihar).

FUNCTIONS OF THE BOARD

Major function of the CDB is adopting measures for the development of coconut
industry, inter alias

• Imparting technical advice to those engaged in coconut cultivation and industry.

• Providing financial and other assistance for the expansion of area under coconut.
• Encouraging adoption of modern technologies for processing of coconut and its
products.
• Adopting measures to get incentive prices for coconut and its products.
Recommending measures for improving marketing of coconut and its products.
• Recommending measures for regulating imports and exports of coconut and its
products.
• Fixing grades, specifications and standards for coconut and its products.
- Financing suitable schemes to increase the production of coconut and to improve
the quality and yield of coconut.
• Assisting, encouraging, promoting and financing agricultural, technological,
industrial or economic research on coconut and its products.
• Collecting statistics on coconut and its products and publishing them.
• Undertaking publicity activities and publishing books and periodicals on coconut
and its products.
THRUST AREAS
• Increasing production of quality planting material.
22

• Creating future production potential by bringing more area under coconut.

• Improving productivity of existing coconut holdings.
• Integrated management of major pests and diseases.
• Strengthening coconut industry by promoting product diversification and by-
product utilization.
ACHIEVEMENTS OF COCONUT DEVELOPMENT BOARD

The progress of the Indian Coconut Sector during the last two decades can be classified
into three distinct categories.
• First is the progress achieved in extending the cultivation of the crop in more
areas both in traditional and non-traditional areas.
• Second is the increase in area, production and productivity of coconut in
Functional Dimensions of the country with the regress in the
consumption of coconut oil in both Commodity Boards edible and non-edible
sector which warranted the need for the development of broad based
processing technologies for the sustainable growth of the industry.
• Third are the problems of low income from the coconut holdings due to price
fluctuations, decline in the prices of coconut and its products which
necessitated the need for the development of appropriate coconut based
farming systems to enhance the farm level income.
In pursuit of making the Indian coconut products accessible to consumers across
the world, there have been significant changes in the domestic markets in terms of
product developments and deep market integration. Viable processing
technologies are now indigenously available in the country for manufacture of
varied products based on coconut kernel, coconut water, husk, shell and wood.
The potential of coconut palm as a source of renewable energy is also being
recognized. The Coconut Development Board has been playing pivotal role in
promoting viable coconut based farming system, on-farm processing and products
development. The concerted efforts of the Board in enhancing farm level income
through productivity improvement and other production measures, product
23

diversification and subsequent demand creations for the new products, have
resulted in a dynamic push to the industry for its sustained growth. Thus the
Board has, by now rendered yeomen service to the cause of the coconut industry.

SCHEMES OF COCONUT DEVELOPMENT BOARD

• Production and Distribution of Planting Material

• Expansion of Area under Coconut
• Integrated Farming for Productivity Improvement
• Technology Demonstration
• Market Promotion and Statistics
• Information and Information Technology
• Human Resource Development

5. SPICES BOARD
The Spices Board was constituted in 1986 under the Spices Board Act 1986 (No. 10 of
1986) with the merger of the erstwhile Cardamom Board (1968) and Spices Export
Promotion Council (1960). Spices Board is one of the five Commodity Boards
functioning under the Ministry of Commerce and Industry. It is an autonomous body
24

responsible for the export promotion of the scheduled spices and production and
development of some of them such as Cardamom and Pepper.

SPICES BOARD GOVERNING BODY

Spices Board, is governed by a 32 member Governing Body. The Chairman is appointed

by the Ministry of Commerce, Government of India. The various members on the board
are represented by Members of Parliament secretaries and other officials from the related
ministries such as Export Promotion (Agra. Division) in the Department of Commerce,
(Ministry of Commerce and Industry), Commissioner (Horticulture), representing the
Department of Agriculture, (Ministry of Agriculture and Cooperation), Director
(Finance), representing the Finance Division in the Department of Commerce, (Ministry
Of Commerce and Industry). Representatives of spices growers, labourers working in
spice plantations, exporters of spices and specialist organizations such as Central Food
Technology Research Institute (CFTRI) and Indian Institute of Packaging are also
included in the Board. Chairman, Spices Board is the full time Chief Executive of the
Organization. He is assisted by a group of divisional directors and supporting staff. The
Head Office of the Board is located at Cochin. Board has Regional Offices, Zonal
Offices and Field Offices. A central Quality Evaluation Laboratory (QEL) - is located at
the Head Office, A Biotechnology Lab also functions at the Head Office. Indian
Cardamom Research Institute the research wing of the Spices Board has its main station
at Myladumpara (Idukki Dist. Kerala) with Regional Stations located at Thadiankudissai
(Tamil Nadu) Saklespur (Karnataka) and Gangtok (Sikkim).

MAIN FUNCTIONS OF SPICES BOARD

• Research, Development and Regulation of domestic marketing of Small and

Large Cardamom.
• Research and production development of vanilla.
• Post harvest improvement of all spices.
• Promotion of organic production, processing and certification of spices.
25

• Development of spices in the North East.

• Provision of quality evaluation services.
• Export promotion of all spices through support for:
- Technology up gradation
- Quality up gradation
- Brand promotion
- Research & product development

EXPORT PROMOTION OF SPICES

This consists of:
- Quality certification
- Quality control
- Registration of exporters
- Collection and documentation of trade information
- Provision of inputs to the Central Government on policy matters relating to
import and export of spices

QUALITY STANDARDS AND BRANDING

Quality has been given special focus in Spices Board's promotional strategy. To foster
Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), Spices
Board approves use of Quality markings such as 'Indian Spices Logo', and the Spice
House Certificate. The Indian Spices Logo is awarded to those who export spices in
branded consumer packs. The award is given after a two tier inspection to satisfy
compliance with regard to adherence to practices ensuring quality, hygiene and safety.
Prior certification under HACCP is a precondition for awarding Indian Spices Logo.
Nineteen (19) spice exporters are awarded with Indian Spices Logo. The Board has
registered Indian Spices Logo with the Trade Registry Authorities in 18 countries.
Spice House Certificate is awarded to exporters of spices who possess the specified
infrastructural facilities for cleaning, processing, grading, packaging and warehousing as
26

the case may be. So far 58 units have been awarded Spice House Certificate. With effect
from 10th September 2003 prior IS0 and HACCP Certification is mandatory for
obtaining 'Indian Spice House Certificates'.

6. TOBACCO
BOARD
27

ACTIVITIES

Recognizing the need to regulate production, promotion of overseas marketing and to

control recurring instances of imbalances in supply and demand, which lead to market
problems, the Government of India established the Tobacco Board, in place of Tobacco
Export Promotion Council, der the Tobacco Board Act of 1975. The Board came into
existence from 1-1-1976 with its head quarters at Guntur in Andhra Pradesh, India.

The Tobacco Board Act aims at the planned development of Tobacco Industry in the
country. Various activities of the Board outlined in the Act for the promotion of the
industry are.

• Regulating the production and curing of Virginia Tobacco with regard to the
demand in India and abroad.
• Constant monitoring of the Virginia tobacco market, both in India and abroad and
ensuring fair and remunerative price to the growers and reducing wide
fluctuations in the prices of the commodity.
• Sustaining and improving the existing international markets and developing new
markets overseas for Indian Virginia Tobacco and its products and devising
marketing strategies in consonance with demand for the commodity including
group marketing under limited...brand names.
• Establishing auction platforms for sale of Virginia tobacco by registered growers
and functioning as an auctioneer at auction platforms either established by it or
registered with it.
• Recommending to the Central Government the minimum prices to be fixed for
exportable Virginia tobacco with a view to avoiding unhealthy competition
amongst the exporters. (under its exim policy, Government have decided to
abolish fixation of M.E.P. with effect from 1-4-1993).
• Regulating in other aspects of Virginia tobacco marketing in India and export of
Virginia tobacco having due regard to the interests of growers, manufacturers,
dealers and the Nation.
28

• Propagating information useful to the growers, dealers and exporters (including

packers) of Virginia tobacco and manufacturers of tobacco products and other
concerned.
• Purchasing Virginia tobacco from growers when the same is considered necessary
or expedient for protecting the interests of the growers and disposing it in India or
abroad as and when considered appropriate.
• Promoting tobacco grading at the level of growers and Sponsoring, assisting, co-
coordinating or encouraging scientific, technological and economic research for
promotion of tobacco industry.

ISO 9001:2000 Certification to Tobacco Board

Tobacco Board in furtherance of its objectives, desired to improve its excellence by

rendering superior services to the utmost satisfaction of its customers namely, growers
and traders in a systematic manner. M/s. Det Norkse Veritas (DNV), Netherlands has
bestowed the honour of ISO 9001:2000 certificate to Tobacco Board for having
established quality management systems confirming with ISO 9001:2000 standards.
Tobacco Board has begun to implement systems aimed at achieving product integrity and
traceability, model project area and quality circles concept to improve the quality of
tobacco leaf to meet the requirements of importers. Board is committed to meeting the
needs of customers. Board advises all the Indian exporters to obtain ISO certification
with a view to meeting the expectations of the global market.
29

7 Coir Board of
India
Coir Board is a statutory body established by the Government of India under a
legislation enacted by the Parliament namely Coir Industry Act 1953 (45 of 1953) for the
promotion and development of Coir Industry in India as a whole.
FUNCTIONS OF THE BOARD

The main functions of the Board as laid down in Section-10 of the Coir Industry Act
are given below:

1. It shall be the duty of the Board to promote by such measures as it thinks fit
the development, under the control of the Central Government, of the Coir
Industry.
2. Without prejudice to the generality of the provisions of Sub Section (l) the
measures referred to therein may relate to:

(a) Promoting exports of coir yarn and coir products and carrying on
propaganda for that purpose;

(b) Regulating under the supervision of the Central Government the

production of husks, coir yarn and coir products by registering coir spindles
and looms for manufacturing coir products as also manufacturers of coir
products, licensing exporters of coir yarn and coir products and taking such
other appropriate steps as may be prescribed;

(c) Undertaking, assisting or encouraging scientific, technological and

economic research and maintaining and assisting in the maintenance of one or
30

more research institutes;

(d) Collecting statistics from manufacturers of, and dealers in, coir products
and from such other persons as may be prescribed, on any matter relating to
the coir industry, the publication of statistics so collected or portions thereof
or extracts therefrom;

(e) Fixing grade standards and arranging when necessary for inspection of coir
fibre, coir yarn and coir products;

(f) Improving the marketing of coconut husk, coir fibre, coir yarn and coir
products in India and elsewhere and preventing unfair competition;

g) Setting up or assisting in the setting up of factories for the producers of coir

products with the aid of power;

(h) Promoting cooperative organisation among producers of husks, coir fibre

and coir yarn and manufacturers of coir products;

(i) Ensuring remunerative returns to producers of husks, coir fibre and coir
yarn and manufacturers of coir products;

(j) Licensing of retting places and warehouses and otherwise regulating the stocking
and sale of coir fibre, coir yarn and coir products both for the internal market and for
exports;

(k) Advising on all matters relating to the development of the coir industry;

(l) Such other matters as may be prescribed.

3. The Board shall perform its functions under this section in accordance with, and subject
to such rules as may be made by the Central Government.
31

CONSTITUTION OF THE BOARD

Coir Board is a statutory body established by the Government of India under a
legislation enacted by the Parliament namely Coir Industry Act 1953 (45 of 1953) for
the promotion and development of Coir Industry as well as export market of coir and
coir products in India as a whole.

Section (4) of the Coir Industry Act 1953 empowers Central Government to constitute
Coir Board. The Sub Rule 4 of the Coir Industry Rules, 1954 provides the number of
persons to be appointed as members of the Board.

The relevant section of the Act is as follows:

1. With effect from such date as the Central-Government may, by notification in

the Official Gazette, specify in this behalf, there shall be established for the
purposes of this Act a Board to be called the Coir Board.
2. The Board shall be a body corporate by the name aforesaid, having perpetual
succession and a common seal with power to acquire, hold and dispose of
property both movable and immovable, and to Contract and shall, by the said
name, sue and be sued.
3. The Board shall consist of a Chairman and such number of other members not
exceeding forty as the Central Government may think expedient, to be
appointed by that Government by notification in the Official Gazette from
among persons who are in its opinion capable of representing.

(a) growers of coconuts and producers of husks, and coir yarn;

(b) persons engaged in the production of husks, coir and coir yarn and in the
manufacture of coir products;
32

(c) manufacturers of coir products;

(d) dealers in coir, coir yarn and coir products, including both exporters and
internal traders;
(e) Parliament;

(f) the Governments of the principal coconut growing States;

(g) such other persons or class of persons who, in the opinion of the Central
Government, ought to be represented on the Board.
4. The number of persons to be appointed as members from each of he categories
specified in sub section 3, the term of office of, the procedure to be followed
in the discharge of their functions by, and the manner of filling vacancies
among the members of the Board shall be such as may be prescribed.
5. Any officer of the Central Government when deputed by that Government in
this behalf shall have the right to attend meetings of the Board and take part in
he proceedings thereof but shall bot be entitled to vote.
33

8. CENTRAL SILK
BOARD
CSB is statutorily committed to:-

· Promote the development of the silk industry by all appropriate measures,

and for this purpose, in particular –

· Undertake, assist and encourage scientific, technological and economic

research in the silk sector

· Devise means to improve cultivation of mulberry plantations

· Produce and distribute healthy silkworm seed

· Improve the quality and production of raw silk and the marketing of silk

· Advise and report to Govt. of India on all matters relating to the

development of the raw silk industry, including the import and export of
raw silk

SERVICES OFFERED
To States’ Sericulture Departments, and NGOs:
• Basic planting material of high-yielding varieties of silkworm food plants

· Region and season-specific packages of practices for food plant

cultivation and silkworm rearing
34

· Collaboration in pest and disease surveillance and control

· Technology packages for reeling and spinning

· Post-cocoon research support

· Assistance in supply of inputs to readers and revelers

To General Public:
A. Sericulturists
• Soil testing and soil analysis (within two weeks of receiving the samples)

· Supply of planting material for food plant cultivation (in suitable planting
seasons within a month of receiving the indent)

· Supply of commercial silkworm seed to Seri culturists (spot purchase if

seed is readily available if not, indents should be placed well in advance)

· Training (depending upon Course schedule)

B. Silkworm Seed Producers

• Training and provision of improved technologies of silkworm seed

preparation, preservation and handling (as per a training calendar)

C. Silk Reelers / Spinners

• Testing of reeling water samples and water treatment for quality silk
reeling (one week)

• Training and provision of improved technologies of silk reeling/spinning

(as per a training calendar)

D. Exporters

• Eco-testing of silk and silk products for physical and chemical

parameters (2 days depending upon number of samples and type of tests)
35

• Undertaking voluntary pre-shipment inspection for quality and content

of silk products meant for exports (2 days)

• Seed Certification / phyto-sanitory certification for export of silkworm

seed (one week)

E. Entrepreneurs

• Assistance in Project selection, and Project preparation (depending upon

size of the Project)

• Technical assistance and consultancy services (depending upon

entrepreneurs convenience and size of the Project)
36

CONCLUSION
The PROJECT focused mainly on constitution and functions of different Commodity
Boards. Tea Board was established in 1953 and its functions are to implement
Government's regulations and policies for the overall functioning of Tea industry. Coffee
Board was established in 1948; till 1995 main function was marketing of Coffee. But
after 1995, marketing is strictly a private affair and Coffee Board concentrates mostly on
extension and promotion activities of Coffee. Rubber Board was established on 1947 and
its main function is to improve area coverage, production and productivity and support
activities for small growers. Coconut Development Board was established with a major
objective of making coconut cultivation more remunerative through diversification,
product development and value addition, expanding area, etc. Spice Board addresses the
issues of development of new cultivars, assists in quality management and promotion of
spices and value added spice products.
37

BIBLIOGRAPHY
- http://www.cieonline.org/index1.htm
- http://silkboard.com
- http://www.coconutboard.nic.in/
- http://www.indiacoffee.org/
- http://coir-india.com/
- http://www.rubberboard.com/
- http://www.indianspices.com/
- http://tea.nic.in/
- http://www.indiantobacco.com/