Producer Company

Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.

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, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved.

Key Features of Producer Company

  • Separate Legal Entity.
  • Uninterrupted Existance.
  • Better Credibility.
  • Easy Management.
  • Owning Property.
  • Limited Liability.

About Producer Company

A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has wide legal capacity and can own property and also incur debts.It has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.A Producer Company deals primarily with agriculture and post harvest processing activities.