STATE TRADING

CORPORATION
 In India, the State Trading
Corporation (STC) was set up in
May 1956 as an entirely state-
owned organisation. Its basic aim
is to stimulate India's foreign trade,
by enlarging the scope of Indian
exports and facilitating essential
imports.
 OBJECTIVES
To enlarge exports,
To facilitate trade (imports) in
specific commodities,
To augment the revenue of the
State
To bring about greater economic
equality,
To regulate trade (imports and
exports) in certain commodities, and
To regulate and overcome difficulties
of trade with communist countries.
 FUNCTIONS
• 1. Improving overall trade, domestic as well as
international.
• 2. Augmenting the national resources of the
country for promoting trade.
• 3. Undertaking of trading generally with State
trading countries and private foreign traders
too.
• 4. Exploring of new markets for traditional
export items and developing exports of new
items.
• 5. Stabilisation of price and traditional
distribution by importing at the Government's
instance any commodity in short supply.
• 6. Handling of such internal trade as promotes
foreign trade.
• 7. Ensuring the quantity and quality of various
commodities to foreign buyers at competitive
rates.
• 8. Assisting in the settlement of trade disputes
between exporters and importers in different
countries wherever, India is directly concerned.
• 9. Implementation of all trade agreements
entered into by the Government of India with
other nations.
In the present scenario everything has become
open i.e. whoever wants to import can import
and whoever wants to export can export. As
said before everything was in the hands of
Government, but today, there is no doubt that
the role of STC has declined as STC has
become one of the players in export-import
field.
In the 1950’s and the 1960’s there were many
restrictions on the export-import of items, i.e.
they were canalized through STC. If someone
wants to export or import any product or
commodity then the person had to take a
license or certificate from the STC, but today
many of the restrictions have been dissolved.
Currently the import of edible and coconut oil
is canalized through STC.
Also, the Government of India has
communicated to STC that there would be
shortage of wheat in this year, so STC is
purchasing it in bulk and storing it to be
released during crisis time. To meet with this
shortage STC has decided to import 5 lakhs
tones of wheat. For this purpose they have
invited tenders from various countries.
STC is also financing many companies i.e. helping them
and borrowing loans at
low interests, opening the L/Cs for import transactions
 etc. For this purpose the STC charges a particular
amount of fees depending on the product value, i.e. it
may be 1%,1.5% of the L/C value. Some of companies
are ISPATH, ESSAR Steel, ESSAR Oil
etc.STC also has a tie-
up for supply of pharmaceuticals (medical, health care
products) to Bangladesh, Turkmenistan, Sri Lanka etc.
 OTHER STCs IN INDIA
• The Handicrafts and Handloom Export
Corporation of India (HHEC), a wholly owned
subsidiary of STC.

• The Minerals and Metals Trading Corporation of

India Ltd. (MMTC).

• The Projects and Equipment Corporation (PEC) of

India Ltd., a wholly owned subsidiary of STC.
• The Cashew Corporation of India Ltd. (CCI) a
wholly owned subsidiary of STC.

• Central Cottage Industries Corporation (CCIC),

a subsidiary of STC.