A Producer Company is formed by 10 or more individuals or two or more institutions dealing in agricultural produces or post-harvest processing activities. Thus, a producer company is a legally recognized cluster of agriculturists/farmers which aims to improve their incomes, statuses of their available support and profitability, and the standard of their living.
In a producer company, you can 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.
A Producer Company carry on following activities
- Manufacture, sale or supply of equipment, machinery or consumables to its producer members
- Production, harvesting, procurement, grading, pooling, handling, selling, export of primary produce of the member or import goods
- To produce education on the mutual assistance p[principles to the producer members of the producer company and others.
- Insurance of the primary producer and its producers
- To render consultancy services, technical services, training, R&D and all other required activities for promoting the interests of producer members.
- Financing of procurement, marketing, processing or other activities such as extending of credit facilities or any other financial assistance to its producer members.