New Delhi, Oct 29: State Trading Corporation chairman and managing director SM Dewan on Friday presented a dividend cheque for Rs 5.46 crore for the year 1998-99 to commerce and industry minister Murasoli Maran.Dewan said the corporation's net profit increased to Rs 12.5 crore in 1998-99 from Rs 2.60 crore in the preceding year, notwithstanding the pay hike revision amounting to Rs 6 crore.In fact, the profit would have been much higher but for the provision of Rs 23.14 crore made for a newsprint supplier's claim for a 1991-92 transaction when import of the item was canalised through STC.Maran advised STC to explore the possibility of entering into retail distribution by setting up a department store .The corporation could also consider inviting proposals for franchise or joint venture from the interested retail chains of repute in and outside the country.
During 1998-99, the corporation achieved a significant increase in exports of coffee, sugar, engineering and construction material,tea and medical disposables. However, there was a steep decline in canalised imports of bulk items like wheat, urea.
Dewan said canalised imports of bulk items such as sugar, wheat, edible oils and newsprint had been the main business area of the corporation for more than four decades of its existence. With most of these items having been shifted to the open general licence, STC had to operate against stiff competition from private traders. To make up for the fall in canalised imports, STC has positioned itself in the import of edible oil,pulses and wheat on commercial account under OGL. STC imported edible oil worth Rs 50 crore and pulses worth Rs 16 crore during 1998-99.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.