The primary function assigned to the Corporation is that of a 'CENTRAL PROCUREMENT AGENCY' for all the controlled and non-controlled essential commodities ( as identified by the Central/State Government under Public Distribution System) at the Wholesale level and further to distribute these commodities through the District Co-operative Federations or the Tehsil Co-operative Unions ( which function as sub-wholesalers ) ; and where these are weak or do not exist , to distribute directly to the fair price shops.

Besides this, Corporation may undertake trading, storage, movement (including inter-state movement) and distribution of such other essential commodities which may be required as per demand from consumer in general, from time to time so as to ensure their availability in the open market at reasonable rates.