From 50 Years Ago: First Year of State Trading.

The first year of the State Trading Corporation’s existence has been one of controversy. When the State Trading Corporation was ushered in, the idea was that the Corporation would be concerned primarily with the development of trade relations with countries where foreign trade is in the hands of state monopolies, and that it would be to the benefit of the country if bargains with such monopoly institutions were settled by an equally strong institution on the Indian side...

Of course, the scope of activities outlined for the Corporation in its Memorandum of Association was much wider... But the Gov­ ernment did try to persuade private trading interests that it was not its intention that the Corporation should make inroads into trad­ ing spheres which were already being ade­ quately handled by the private trade.