Commodity Boards in India

Context: Recently, the Finance Minister, in her Budget speech, spoke about establishing a Makhana Board in Bihar.

Relevance of the Topic:Prelims: Commodity Boards, Facts about Makhana.

Commodity Boards

  • The Commodity Boards are autonomous bodies under the Ministry of Commerce & Industry.
  • Functions of Commodity Boards:
    • Provide financial and technical assistance to growers.
    • Facilitating trade fairs, branding, and market linkages.
    • Promoting research and development for value addition.
    • Ensuring remunerative prices for farmers.
    • Encourage export and domestic trade.

Existing Commodity Boards

There are five statutory Commodity Boards under the Department of Commerce. 

  • Tea Board: 
    • Set up in 1954 under the Tea Act, 1953. 
    • Membership: headed by a Chairman and consists of 30 Members.
    • Head Office: Kolkata 
    • 2 Zonal offices: one each in the North Eastern Region at Jorhat in Assam and in the Southern Region at Coonoor in Tamil Nadu. 
    • 3 overseas offices: located at London, Moscow and Dubai.
  • Coffee Board:
    • Constituted under Coffee Act, 1942. 
    • Board comprises 33 Members including the Chairperson, who is the Chief Executive and functions from Bangalore.
  • Rubber Board:
    • Constituted under Rubber Act, 1947 
    • The board is headed by a Chairman and has 27 members.
    • Headquarters: Kottayam, Kerala.
  • Spices Board:
    • Constituted in 1987 under the Spices Board Act, 1986. 
    • The board is headed by a Chairman and consists of 32 members
    • Head Office: at Kochi, Kerala
    • Responsibility: Development of cardamom industry & export promotion of 52 spices listed in the Schedule of Spices Board Act, 1986.
  • Tobacco Board:
    • Constituted in 1976 under the Tobacco Board Act, 1975. 
    • Headquarters: at Guntur, Andhra Pradesh

Newly Established Boards

  • National Turmeric Board (2024): 
    • Headquarters: at Nizamabad, Telangana
    • Aims to enhance turmeric production in 20 states.
    • Note: Turmeric is also known as ‘Golden Spice’.
  • Proposed Makhana Board: 
    • To be established in Bihar. 
    • Union Budget 2025 emphasised institutional support for Makhana farmers in Bihar.

Important Facts about Makhana (Euryale ferox Salisb.)

  • Also known as gorgon nut.
  • Makhana is an aquatic crop cultivated in shallow wetlands.
  • Bihar produces 85% of India's total Makhana.
  • Its growth requires a conducive range of air temperature (20-35°C), high humidity (50-90%) and annual rainfall of 100-250 cm.
  • It is a water intensive crop, needing assured availability of irrigation.
  • Makhana is classified as a dry fruit although it is a product of an aquaphyte.
  • Makhana plant has a combination of dicot and monocot characteristics. 
  • Economic significance: Supports 80,000 fishermen families in Bihar.
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Bottlenecks in the functioning of Commodity Boards

  • Stakeholder Representation: Often dominated by public representatives instead of actual farmers.
  • Autonomy Concerns: Political interference may hinder the effectiveness of the Boards.
  • Implementation delays: For example, Turmeric Board is yet to be fully operational.

Way Forward

  • Ensure greater autonomy and farmer representation in decision-making.
  • Strengthen scientific research for better yield and quality standards.
  • Boost logistics and supply chain to foster trade into newer markets.
  • Promote technological advancements for modernizing farming practices.
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