Producer Company


Producer Company Registration

Producer Company could be a company registered under the Companies Act, 2013. It consists of a group of people involved in the production of primary produce or having one or additional objectives with reference to primary produce. In a producer company, you'll appoint agriculturist members and accept deposits in the form of RD/FD and provide them maturity as well as distribute loans to your farmer members and charge interest from them.

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands ends up in disorganization and it is not viable for Indian farmers to adopt the most up-to-date technologies. By organization of those farmers into producer firms, economies of scale are often unsecured and therefore the support of farmers is often improved. Thus the concept of Producer Company is aimed to empowering farmers by creating clusters of farmers organized as a Producer Company.