The State Trading Corporation (STC) was set up by an Act of Parliament on the 24th October 1982 to regulate and rationalize trade, particularly in relation to essential commodities. It was to operate as the trading arm of the Government on sound commercial principles. The Board members are appointed from both the public and private sectors.
STC became operational in January 1983 and today it is the importer of long grain white rice, basmati rice, wheaten flour and petroleum products (Mogas, Dual Purpose Kerosene, Gas Oil, Fuel Oil).
All the STC’s selling prices are fixed by the Government. As the rice and flour are sold at prices below landed cost, the difference is made good in the form of subsidy. With regard to the other products, the pricing is done at cost plus a margin basis. The margin is meant to cover the administrative expenses of the Corporation.
As at date, the STC has a workforce of 273 employees.