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Commodity Boards in India: All you need to know about registration and membership

Commodity Boards in India are statutory government bodies set to promote the export of traditional commodities. In this blog, learn about their benefits & registration process.
Commodity board
Did you know that India’s exports touched a record high of $421.8 billion in merchandise goods in 2021-221? The Government of India has established many statutory bodies and councils for export promotion. It has also set up commodity boards to accelerate overall trade from India.

One of the key differences between a commodity board and an export promotion council is that a commodity board is responsible for the promotion of traditional and primary exports, while an export promotion council is responsible for the promotion of non-traditional items like jewellery and software.

What is a commodity board?

Commodity boards in India are statutory bodies established by the government to promote traditional commodities that have a high export potential. In addition to export promotion, a commodity board is also responsible for product development, market research, providing advice to the government and sponsoring trade delegations2.

What is the role of a commodity board in India?

Some of the key roles of commodity boards are:
• Promotion, production and development of traditional commodities for the export market
• Introducing new techniques for manufacturing commodities in the domestic market
• Advising the government on topics related to exports such as agreements with other countries and fixing quotas for exports
• Providing information, guidance and similar services to exporter members
• Participating in exhibitions and trade fairs in international markets
• Conducting market surveys to understand the target market and provide market intelligence to exporters
• Sponsoring trade delegations to improve relations between exporters and importers
• Arranging pre-shipment inspection for export commodities

List of commodity boards in India

Some of the commodity boards in India are:

Central Silk Board

Set up in 1949 under the Central Silk Board Act, this council is responsible for the development of the silk industry in India. It is headquartered in Mumbai and works under the administrative control of the Ministry of Textiles2.

Coconut Development Board

The Coconut Development Board was established in 1981 under the administrative control of the Ministry of Agriculture. The organisation is responsible for developing the coconut industry in the country3.

Coffee Board

Working under the administrative control of the Ministry of Commerce and Industry, the Coffee Board is responsible for the development of the coffee industry in the country. The organisation was established under the Coffee Act of 1942, and has set up a central coffee research institute in the country.

Spices Board

India is the largest producer and exporter of spices. The Spices Board is responsible for promoting spices from India globally. Established in 1987 under the Spices Board Act of 1986, it is under the administrative control of the Ministry of Commerce and Industry.

Rubber Board

The Rubber Board is responsible for promoting the rubber industry in India. It was established as a statutory body under the Rubber Act of 1947.

Tea Board

India is among the largest producers and exporters of tea in the world. Set up in 1955, the Tea Board is responsible for the development of the Indian tea industry.

Documents required to register with a commodity board

The documents required to register with commodity boards in India can differ as per the requirements of each board and commodity. Below are some of the common documents:

• Duly filled and signed application form of the respective commodity board
Importer-Exporter Code (IEC) number
• Permanent Account Number (PAN)
• Copy of the company’s Memorandum of Association or MOA (for corporate/ institutional/ private limited/ limited companies)
• Copy of the company’s Partnership Deed (for partnership company and individual ordinary).
• Copy of the Trust’s Deed (for trusts/institutional/corporate)
• Copy of the Board Resolution or Power of Attorney issued in favour of the signing authority if the name of the signing authority is not mentioned in the IEC/MOA/Partnership Deed/Trust Deed of the company/firm/trust
• GST registration certificate

How to register with a commodity board?

Each board has its own set of rules and procedure to register and become a member. Most of the commodity boards have a form that an exporter or importer needs to fill in and submit along with other required documents and membership fees (if any).

Benefits of registering with a commodity board

• Help exporters increase their business in international markets.
• Help make a business eligible for incentives and perks offered by the government under the Foreign Trade Policy.
• Provide a platform at reputed international conferences, seminars and exhibitions.
• Provide market intelligence and research reports related to international markets.
• Provide support in handling issues with government departments and ministries.

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Frequently Asked Questions

Do all commodity boards come under the same ministry?
No, all commodity boards do not come under the same ministry in India. For example, the Silk Board falls under the purview of the Ministry of Textiles, while the Rubber Board falls under the control of the Ministry of Commerce and Industry.
Is a commodity board a government body or a non-government body?
A commodity board is a statutory body formed by a specific act and falls under the administrative control of the Indian government.
Published on September 10, 2022.

Sources:
1. https://pib.gov.in/PressReleasePage.aspx?PRID=1808831
2. https://csb.gov.in/
3. http://www.coconutboard.gov.in/
4. https://www.indiacoffee.org/
5. http://www.rbegp.in/#
6. http://www.indianspices.com/
7. https://www.teaboard.gov.in/home
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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