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. Produce are things that have been produced or grown,
especially by farming. Therefore, a Producer Company deals primarily with agriculture
and post harvest processing activities.
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. Thus the concept of producer
company is aimed at empowering farmers by creating clusters of farmers organized
as a Producer Company.