Commodity Boards | Functions | Kinds of Commodity Boards in India

Commodity Boards - Functions, Kinds

Image: Commodity Boards – Functions, Kinds

Commodity Boards in India

The Government of India has set up Commodity Board as a separate organization to promote the export of commodities. Commodity Boards regard themselves as a match to export promotion council. However, the following differences may be observed between Commodity Boards and Export Promotion Council.

1. Commodity Boards look after the export promotion of primary and traditional items of export. While the export promotion council is responsible for the promotion of non-traditional items like engineering goods, computers, chemicals, etc.

2. Commodity Boards are statutory bodies, while export promotion councils are registered bodies under the Indian Companies Act.

3. Apart from export promotion, Commodity Boards take up product development. Export promotion councils are concerned mainly with the promotion of exports of respective products.

Functions and objectives of Commodity Boards

The functions and objectives of Commodity Boards are given below:

1. Advising the government on policy matters such as fixing quotas for exports, entering into trade agreements with foreign countries, etc.

2. Undertaking promotional activities such as participation in exhibition and trade fairs, opening of foreign offices abroad, conducting marketing surveys, sponsoring trade delegations, etc.

3. Promoting the consumption of commodities in their jurisdiction by opening branch offices in foreign countries.

4. Resolving all problems relating to commodities in their jurisdiction.

5. Undertaking research activities to develop production and marketing activities within the country. Commodity Boards have research units of their own. Examples include Central Coffee Research Institute, Rubber Research Institute, Coir Research Institute at Allepply, the Central Sericulture Research Station at Berhampur, etc.

6. Imparting training to workers engaged in the production of the commodity concerned. The National Coir Training and Design Centre, Institutes of Handloom Technology at Salem and at Varanasi are the training institutes set up by their respective commodity Boards.

Kinds of Commodity Boards in India

The Government of India has established eight commodity Boards to guide production and export of commodities in their jurisdiction:

  • Coffee Board
  • Tea Board
  • Cardamon Board
  • Rubber Board
  • Coir Board
  • Central Silk Board
  • The All India Handicrafts Board
  • The All India Handloom Board.

1. Coffee Board: The Coffee Board was established under the Coffee Act of 1942. It aims at the development of the industry and the promotion of its exports. The Coffee Board has set up a Central Coffee Research Institutes and also six coffee demonstration farms. The results of its research activities are made available to coffee growers. The Board advertises its product in foreign trade journal and mass circulation newspaper media. It also participates in trade fairs and exhibitions to promote the export of the product.

2. Tea Board: The Tea Board was established by the Government of India under the Tea Act of 1955. Development of the tea industry and the promotion of its export are the main objectives of the Tea Board. The board has set up offices in India as well as abroad. It works in collaboration with the Tea councils set up in the U.K, the USA, Germany, France, Australia, New Zealand and Canada with the cooperation of other tea producing countries. The Board also arranges for pre-shipment inspection and quality control under the Tea Control Order of 1959.

3. Cardamom Board: The Cardamom Board was constituted under the Cardamom Act of 1965 by the Government of India. It is the statutory body with its headquarters at Ernakulam. It has set up a foreign office at Brussels which conducts exhibitions abroad and undertakes promotional campaigns.

4. Rubber Board: The Government of India established the Rubber Board under the Rubber Act of 1947 as a statutory body. The Board advises the government on all matters related to rubber industry. Further, it undertakes control, planning, marketing and acquisition of rubber.

Rubber Board promotes the development of rubber industry in India. It is responsible for the registration of estates, issue of new planting and replanting licenses and other development schemes such as replanting subsidy. It has set up a Rubber Research Institute with well equipped laboratories. Its publications are very useful for the rubber industry.

5. Coir Board: The Coir Board was incorporated under the Coir Industry Act. It aims at the development of the coir industries. It has a coir research institute at Alleply and National coir Training and Design centre. The Coir Board conducts research surveys. encourages formation of new industry. It undertakes publicity in India and abroad through mass media and exhibitions.

6. Central Silk Board: The central silk board was set up in 1949 under the Central Silk Board Act. Its headquarters are located at Mumbai. It also runs the central sericulture research stations at Berhampur, Kalimpong, Mysore and Ranchi. The board performs the following functions:

  1. Developing sericulture industry
  2. Implementing annual plans and attaining production and export targets.
  3. Organizing research, training, seed production, and export promotion.
  4. Import and export of raw silk fabrics.

7. The All India Handicrafts Board: The All India Handicraft Board has its headquarters in Delhi. Its activities include the following:

  1. The running of four design centres at Mumbai, Kolkata, Bangalore and New Delhi and one development centre at Bangalore.
  2. Assisting the state government in planning and executing development schemes.
  3. Development and evaluation of new designs which are commercially viable and production of proto-type.
  4. Export promotion measures like participation in trade fairs and exhibitions, production of films, brochures, catalogues and other promotional aids.

8. The All India Handloom Board: The All India Handloom Board promotes the development of handlooms as cottage industry. Two institutes of Handloom Technology are located at Salem and Varanasi. They also offer 3 year diploma courses.

Seven weaver centres are located in Bombay, Indore, Varanasi, Calcutta, Mangalari, Bangalore and Madras. These centres conduct research to evolve attractive designs for domestic as well as foreign markets. They provide technical assistance in printing, dyeing and weaving. They also provide financial assistance and helps the industry by organizing depots abroad. They arrange pre-shipment quality control inspection.