The state trading corporation was set up in May 1956 as an autonomous corporation with an authorized capital of rupees one crore (which was raised to rupees five crores in June 1959) primarily to play an important role in the implementation of Government’s foreign trade policy.
The main functions of the S.T.C. are:
1. To explore new markets for existing as well as new products.
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2. To promote exports ‘difficult to sell’ items and promotion of long-term export operations.
3. To diversify and increase India’s export trade.
4. To undertake exports and imports where bulk handing is advantageous.
5. To undertake import and /or internal distribution of commodities in short supply with a view to establishing prices and rationalizing distribution.
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6. To hold or assist in holding exhibitions in India and elsewhere of the products and articles in which the company is interested.
The S.T.C. is also acting as an agent of the Government of India is controlling production, distribution and export and import of a number of commodities such as cement fertilizers etc.
The total turnover of the corporation was Rs. 794 crores in 1974-75. As its trading activities have diversified a number of subsidiary corporations, namely handicraft and handloom export corporation of India ltd. Projects and Equipment Corporation of India Ltd., India Motion Pictures, Export Corporation Ltd., State Chemicals and Pharmaceutical Corporation of India Ltd., Cashew Corporation of India Ltd. have been formed to look after the specific areas of trading operations.
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The state trading corporation has opened officers in many countries of the world so as to enable it to make effective marketing and obtain better terms of trade.