State Trading Corporation of India Ltd is an international trading company owned by Government of India. The company is involved in the export, import and domestic trading of a range of products, both agricultural and non-agricultural commodities. They exports foodgrain, castor oil, coffee, cashew and tea and imports bullion, vanaspati and edible oils, pulses, hydro-carbons, metals and minerals and fertilizers. The company has one subsidiary, namely STCL Ltd (formerly known as Spice Trading Corporation of India Ltd). State Trading Corporation of India Ltd was incorporated in the year 1956. During the year early years, the company dealt with the East European countries, but now they trade with almost all the countries of the world. The company was developed vast expertise in handling bulk international trade. During the year 1994-95, the company started trading items rice, wheat, coffee, Indian-made foreign liquor, sandalwood and oil and during the year 1995-96, they entered into new area of business like direct import of fertilisers, non-ferrous metals and kerosene oil. In domestic trading, they expanded their activities in areas like rice, wheat, coffee, cashew, tobacco and rubber. During the year 2001-02, the company entered into sugar export business after a gap of two years and exported sugar Sri Lanka, Indonesia and Sudan. During the year 2002-03, the company's entire shareholding in Tea Trading Corporation of India Ltd was transferred to Projects & Equipment Corporation, a public sector undertaking under the Ministry of Commerce, at a notional price of Re 1 with effect from April 28, 2003. During the year 2003-04, the company signed a MoU with India Household and Healthcare Ltd, the sole licensee LG Care, Korea in India, in which the company imports LG Care, FMCG products like detergents, soaps, shampoos, tooth pastes, cleaning products, hair gels etc at different ports for distribution all over India by IHHL. During the year 2004-05, the company singed a MoU with Mysore Minerals Ltd for export of iron ore fines on 50:50 profit sharing basis. Also, the company forayed into import of FMCG Goods and IT products. During this period, the company launched retail sale pf imported gold coins in denominations of 5 gm and 10 gm from their corporate office building at New Delhi. During the year 2005-06, the company entered into domestic supply of various raw materials such as iron ore, steel, coke, chemicals, etc. they executed the highest ever contract (Rs 800 crore) for supply of 1.9 million MTs of thermal coal to NTPC during the year. The company also entered into oilseeds market and purchased soyabean and mustard seeds worth Rs 29 crore. The Corporation also procured, for the first time, about 10,000 MT of castor seeds valuing Rs 15 crore for sale in the domestic market. During the year 2007-08, the company signed an offset agreement with CFM, Boeing and GE for monitoring offset obligation of USD 69 million, 1.25 billion and 100 million respectively. They acquired a plot of land at Paradip port for facilitating iron ore exports a plot of land at Paradip port for facilitating iron ore exports and also applied for allotment of plot at Haldia Port. The company started tea operations in Nilgiri district of Tamil Nadu. They also launched domestic sale of tea in own brand 'Tohfa' to Gujarat State Civil Supplies Corporation for supply through PDS. During this period, the company signed a MoU with company specializing in Research & Development activities on improving the yield of Jatropha plants for production of bio-diesel. The company is in the processof starting trial cultivation of bio-engineered, high yielding of jatropha in Namibia on an area of about 25 hectares. They are in talks to grow crop in Indonesia as part of a move to raise output of the bio-diesel feedstock. The company got second rank among trading companies of India and achieved first runner up position in the Multi Category sector under the Large exporters' category for the D&B-ECGC Indian Exporters' Excellence Awards. The company was selected for MoU Excellence Award for the year 2006-07 by the Department of Public Enterprises. Also, the company was awarded 'International Trade House of the year Award (2007-08)' sponsored jointly by DHL and CNBC TV18. The company through their subsidiary STCL Ltd set up a Chilli Processing plant at Byadagi in Karnataka. They also set up two more plants for pepper processing and Chilli Sterlisation in Siddapur, Karnataka and Chhindawara, Madhya Pradesh respectively. The company in a joint venture with NAFED and STCL Ltd is setting up a Food Testing Laboratory at Chindwara in Madhya Pradesh.The State Trading Corporation of India Limited (STC) is an India-based company. The Company is engaged in international trading. STC had 13 branch offices in India as of March 31, 2012. The Company operates in two segments: Export and Import. The Company exports and imports a number of items varying from chemicals and drugs to bulk commodities, such as edible oils, cement, sugar, newsprint, wheat, urea, etc. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company entered into a number of new areas of business, such as stock and sale of soya seed, mustard seed, desi chana and retail sale of STC brand tea in domestic market. During the fiscal 2012, it exported over 25,500 tons of non-basmati rice. It also exports molasses to Far-East countries, including Korea, Indonesia and Vietnam, and the European Union. It has one wholly owned subsidiary Company, STCL Limited. It is also diversified into bullion, hydrocarbons, metals, minerals, ores, fertilisers and petro-chemicals.

Company History - State Trading Corporation Of India Ltd.

YEAR EVENTS 1956 - The Company was incorporated as a private limited company on 18th May, 1956 and converted into a Public Ltd. Company on 31st January 1992. The Corporation was formed to organise and effect exports from and imports into India of all such goods and commodities as it may from time to time determine.

- The company has been entrusted with purchase, import and distribution of cement as well as purchase and sale of imported cars. It also undertakes price support and buffer stock operations in specific commodities as directed by Govt.

1959 - 1,00,000 shares subscribed for by the Govt. of India.

1963 - On 26th September, the State Trading Corporation was bifurcated by the establishment of the Minerals and Metals Trading Corporation of India, Ltd. The new Corporation took over all the assets and liabilities pertaining to the minerals and metals trade as on 1st October.

1969 - 3,00,000 bonus shares issued.

1975 - 5,00,000 bonus shares issued.

1977 - 2,00,000 bonus shares issued.

1978 - 3,00,000 bonus shares issued.

1992 - The Company was nominated by the Govt. of India as its agency for sale of 47000 MTs of crude degumment solvent extracted soyabean oil received under the auspicies of USAID.

- The Corporation entered into MOUs with a few selected industrial houses for making available to the Corporation, their products for exports. STC was to render their marketing assistance.

- A Trade Development Cell (TDC) was set up with the intention of developing non-canalised trade including merchanting trade.

- Tea Trading Corporation of India Ltd. is the only subsidiary of the corporation. The Cashew Corporation of India Ltd. (CCI), wholly owned subsidiary of STC was merged with the Corporation as per notification dated 21st April.

- The Corporation has introduced link, barter and parallel deals as an instrument of export promotion to augment exports and arrest the downward trend in the export of certain commodities to specific destinations.

- Equity shares subdivided on 31.1.1992. 150,00,000 bonus shares issued in prop. 1:1.

1993 - The Corporation sold the oil recently from crushing operations under its own brand name "Ragini" and "Darpan".

1994 - The Corporation entered into an agreement with COMARK, a multistate cooperative federation of about 3000 coffee growers for handling their entire exports and part of domestic marketing.

- As on 31st March, the Corporation, had disinvested 23,93,200 shares to various Mutual Funds/Financial Institution comprising 9% of the equity capital of the Corporation.

- The Corporation decided to enter into joint venture in order to develop captive supply source for exports. Five projects in the area of core competence viz. acquaculture, footwear, mushrooms, and bio-technology were identified.

1995 - With a view to developing captive sources supply for exports, the Corporation entered into joint ventures with two aqua culture units - Bluegold Maritech International Ltd. & Richfield Aquatech Ltd. Also, the Corporation finalised three more joint ventures two in the field of grey fabrics and one in mushrooms involving a total investment of Rs 4 crores.

1996 - The STC ventured into import of gold/silver and export of jewellery in terms of present export/import policy. It has set up vaults at New Delhi, Mumbai & Ahmedabad.

- The Company entered into a MOU with Srilanka Pharmaceuticals Corporation (SPC) Colombo by which STC would act as the modal agency for their purchases of drugs and pharmaceuticals from India.

- Another MOU was entered into with Haffkeme Bio Pharmaceuticals, Mumbai by which STC would act as the sole exporting arms of all Haffkeme products especially serums and vaccines; A distributor was appointed at Turkey for serums and vaccines manufactured by Haffkeme.

2002

-STC ties up with Power Finance Corporation to reduce the end cost of power.

2003

-STC appoints Mr A S Arora, AS&FA, Minitry of Commerce as Part time Director on the board of the company.

2005

-STATE Trading Corporation of India Ltd (STC) has signed a MoU with the Commerce Ministry for 2005-06 to indicate its physical targets and other performance parameters for the next fiscal.

2006

-Govt permits STC to export 1.5 lakh t sugar

-STC to roll out regional brands

2008

-The Company has issued Bonus Shares in the Ratio of 1:1.

2010

- State Trading Corporation of India Ltd has informed BSE that Government of India, Ministry of Commerce and Industry, Department of Commerce Vide its order dated January 13, 2010 has appointed Shri P. K. Chaudhery, Additional Secretary, Department of Commerce as Director on the Board of STC with immediate effect vice Shri R. Gopalan.

2011

-Shri Udai N. Abhyankar, Former IFS Officer Board of Director of The State Trading Corporation of India Ltd.

2012

-39th rank in terms of net sales among Top 500 Companies by Financial Express (Feb2012).

-Won award for Gentle Giant Miniratna - I (Largest Non-Manufacturing Company) at the Third DSIJ PSU Awards 2011 ceremony held at New Delhi.

-32nd rank in terms of net sales among Top 1000 Companies by Business Standard (Mar2012).

The State Trading Corporation of India Ltd. (STC) is a premier International trading company of the Government of India engaged primarily in exports, and imports operations. It was set up in 1956 primarily with a view to undertake trade with East European Countries and to supplement the efforts of private trade and industry in developing exports from the country. The Corporation is registered as an autonomous company under the Companies Act, 1956 and functions under the administrative control of the Ministry of Commerce & Industry, Govt. of India.

The Corporation has played a key role in the Indian economy. In the pre-liberalisation era, it acted as an arm of the Government of India not only to regulate foreign trade but also for intervention in the domestic market. The Corporation handled canalized exports and imports of large number of items varying from chemicals and drugs to bulk commodities such as edible oils, cement, sugar, newsprint, wheat, urea, etc. thereby ensuring timely availability and equitable distribution of mass consumption items as well as essential raw materials for the industry. Canalisation also helped the nation to benefit from economies of scale and keeping a close watch on the scarce foreign exchange.

It undertook price support operations to ensure remunerative prices to growers for their crops such as raw jute, shellac, tobacco, rubber and vanilla as and when called upon by the Government to do so.

As part of its export development effort, STC extended technical, marketing and financial assistance to exporters by arranging import of machinery and raw material for export production, setting up design centres, providing testing laboratories, taking products of small manufacturers to overseas markets by organising their consortia, participation in exhibitions and trade fairs, etc.

GrainsInternational trading in food grains and other products has been one the major activities of STC, since its inception.

Wheat

STCs import / export of wheat depends upon the Govt. of India regulations and policies.STC is exporting Wheat from FCI/Central Pool Stock since Aug2012 from Mundra, Chennai and New Mangalore Ports. A quantity of aboutOne Million MTs of Indian milling wheat has been exported during Financial Year 2012-13.

Typical Specifications of Indian Milling Wheat Exported by STC :Parameter Specifications

Protein (On Wet Basis)11.50 pct.Minimum

Test Weight77 Kg/hlMinimum

Gluten (on wet basis)26 pct.Minimum

Falling Number400Minimum

Moisture Content12.00 pct.Maximum

Foreign Matter(FM) /Other Food Grain (OFG)2.75 pct. (0.75 FM + 2.00 OFG) Maximum

Shrivelled/Shrunken/Broken6.00 pct.Maximum

Damaged Grains(DG)/WeevilledGrains(WG)3.00 pct. (2.00 DG+ 1.00 WG)Maximum

The exports are made by initiating global bids. Destination ports to which exports were made during 2012-13 include Bangladesh, UAE, Qatar, Malaysia, Tanzania, Mozambique, South Korea, Djibouti, Philippines, Thailand, Indonesia etc.During 2006-08, STC imported about 6.8 million tons of wheat on behalf of the Govt. of India to meet domestic shortages.

Typical Specifications of Milling Wheat Grade 1 imported by STC :Parameter Specification (%) Variation

OriginIndia-

Protein11Max

Moisture12Max

Damaged Kernels3Max

Foreign material2Max

Gluten9Min

Wet gluten24Min

Other food grains2Max

Bored Grains2Max

The wheat imported by STC is also required to satisfy phytosanitary requirements, insecticides and pesticides limits, weed seed limits and other quality parameters.

Rice

STC is a regular supplier of rice to various destinations in Africa, Middle East, South East Asia, Caribbean countries etc. However, export of rice is subject to Govt. of India regulations and policies.

In the recent years, STC has exported large tonnage of rice to Bangladesh, Myanmar, Madagascar and other African and South East Asian countries.

STC also supplies Rice under the World Food Programme.

Typical Specifications of Grade A & common Rice exported by STC :S.No. Refractions Maximum Limits (%)

Grade A Common

1Broken*

Raw2525

Parboiled1616

2Foreign Matter**

Raw/Parboiled0.50.5

3Damaged#/Slightly damaged

Raw33

Parboiled44

4Discolored Grain

Raw33

Parboiled55

5Chalky Grains

Raw55

6Red grains

Raw/Parboiled33

7Admixture of lower class

Raw Parboiled6-

8DE husked Grains

Raw/Parboiled1212

9Moisture@

Raw/Parboiled1414

* Including 1% small Broken. **Including mineral matter not more than 0.25% by weight and impurities of animal origin not more than0.10% by weight. # Including Pin Point damaged grains. @Provision of value cut for excess moisture.PulsesIndia is a regular importer of pulses. STC undertakes import of pulses under various schemes of the Government of India as announced from time to time for supply to state governments and / or sales in the open market also imports on commercial account.

STC imports various types of pulses like black mapte, green moong, chick peas, dun peas, lemon tur, yellow peas, etc.

Typical Specifications of Pulses imported by STC :

Parameter Tur Whole Pigeon Peas Pigeon Peas Desi Chick Peas Green Moong Urad (Black Matpe) Burmese Lemon Toor Yellow Peas

(Max%) (Max %) (Max%) (Max %) (Max %) (Max %) (Max %) (Max%)

FOREIGN MATTER11112110.5

WEEVILED SEEDS1331212-

DAMAGED* OTHERWISE245332.545

SISTER BEANS0.50.50.5-33-

FOREIGN BEANS0.50.50.50.51---

BROKEN/SPLIT0.520.51--

MOISTURE1212121210121214

COUNTRY OF ORIGIN /SOURCE

Malawi/ MozambiqueTanzaniaTanzania/ KenyaCanada

In addition, the imported pulses need to comply with Indian Phytosanitary Norms and should be free from live infestation.* Including immature, shriveled, heated fungi and discolored grain.Oilseeds And Extractions

STC purchases various oilseeds from Mandies (wholesale markets) at the time of harvesting. These are either sold back in the domestic market at an opportunate time or are got crushed by taking the crushing capacity on lease. The extractions are exported while the oil is sold domestically. The seeds/oils in which STC deals include Soyabean, Sesame, Ground Nut, Rapeseed and Mustard seeds.

Typical Specifications of Sesame seeds: Product Specifications

Mechanically hulled & dried Sesame SeedQualityPremium, color sorted.

Purity99.98% min.

FFA (as oleic acid)1% max.

Moisture4.5% max.

Natural White Sesame Seed Quality99/1; 98/2;95/5

Purity99.95% min. 99.5% min. 99% min.

FFA (as oleic acid)1% ~ 2% max.

Moisture5% ~ 6% max.

Natural Black Sesame seed Quality99/1; 98/2;95/5

Purity99.95% min. 99.5% min. 99% min.

FFA (as oleic acid)1% ~ 2% max.

Moisture5% ~ 6% max.

Typical Specifications of Indian Rapeseed Meal: Parameter Specifications

MoistureMax 10 %

ProteinMin 38 %

OilMax 1 %

Sand & SilicaMax 2.5 %

FibreMax 12 %

Typical Specifications of Soyameal: Specifications Standard SOPA HI-Pro Max Variation

ProteinMin 46-48 %Min 48-50 %

MoistureMax 11-12 %Max 8-10 %

Sand SilicaMax 2%Max 1%

FiberMax 6%Max 3-4 %

Urease ActivityMax 0.3Max 0.3

Coarse GrainsMaize

STC imports significant quantities of maize (for popcorn) under Tariff Rate Quota (TRQ) based on specific requests received from actual users from time to time.

Typical Specifications for Fair Average Quality of Imported Maize: S.No Refractions Maximum Limits (%)

1Foreign matter1

2Other Food grains2

3Damaged Grains1.5

4Slightly damaged, Discolored and touchy grains4.5

5Shriveled and immature grains3

6Weevilled grains1

7Moisture content14

STC also exports maize.

Typical Specifications for Export of Indian Yellow Maize: S.No Refractions Maximum Limits (%)

1Foreign Matter3.00%

2Weevil - led seeds2.00%

3Moisture14.00%

4Damaged Otherwise6.00%

5Discoloured / Immature Seeds3.00%

6Broken Seeds3.00%

7Admixture2.00%

8Aflatoxin50 PPB

9Free from live weevils

STC has been in Tea business for more than three decades. Presently, tea operations of STC are centralized at Coimbatore / Bangalore Branch.

The entire tea operation viz. purchase of leaves, processing, blending, storage, inspection & dispatch is monitored and inspected by experienced professionals to maintain high standards of quality and freshness

The tea produced by STC is sold in the domestic markets and is also exported.

STC has also forayed into retail sales by launching the retail packets of tea in 250gms under the brand STC TEA for sale in domestic market. The distribution is being expanded to Karnataka, Andhra Pradesh & Kerala and the response is very good. A retail outlet for selling tea in retail packing was also opened in the office premises of STC Bangalore. The Corporation also plans to expand the operations in North India and in other states by supplying North-East Tea.

Precious MetalsBullionSTC is one of the agencies nominated by the Govt. of India to import gold, silver and other precious metal into the country. STC imports Gold in 100 gms and 1 Kg bar from LBMA members as well as silver for traders / jewellry manufacturers.Typical Specifications for Gold & Silver: GOLD SILVER

TT Bars 1 kg Bars Purity : 0.995, 0.999 15 kg 28 kg to 31 kg Purity : 0.9999

Mineral And Metal OresSTC has been regularly importing various types of mineral ores and concentrates into India to meet the requirements of actual users in the country.

Manganese Ore

Typical Specifications of Manganese Ore required for Ferro-manganese in India:Constituents Mineral Ore Grade

48% and above 46-48% 44-46% 42-44% 40-42% 38-40%

Fe (max.)7%8%10%11%13%15%

SiO2 (max.)7.5%9%10%11%12%13%

Al2O3 (max.)2%3%3.5%4%5%6%

SiO2+Al2O3 (max.)8%10%10%12%13%15%

Mn:Fe ratio (min.)764.53.532.5

Iron OreSTC exports Iron ore to various clients mainly based in China and East Asia.

Typical Specifications of Iron Ore:Fe content 50% 51% 52% 53% 57% 59% 63%

Sio27%11%10%7%8%6.5%4.5%

Al2o38.5%6.5%6%7%5%4.5%6.5%

S0.03%0.03%0.03%0.07%0.03%0.07%0.03%

P0.06%0.08%0.06%0.07%0.07%0.08%0.08%

Moisture11%10%10%10%10%9%10%

Size>10mm10%10%10%10%10%10%10%

Size