Producer Company

A producer company means a body corporate, having objects specified in section 581 B and registered as a Producer Company.

The object of a producer company shall relate to all are any of the following namely:

Production , harvesting , procurement, grading , pooling ,handling marketing, selling, export of primary produce of members or import of goods or services for their benefit:

Provided that the producer company may carry on any of the activities specified in this clause either by itself or through other institution;

  • Processing including preserving drying, distilling , brewing , venting canning and packing of produce of farmers;
  • Manufacture, sale or supply of machinery, equipment or consumables mainly to its members;
  • providing education on mutual assistance principles to its members and others;
  • rendering technical services , consultancy services , training , research and development and all other activities for the promotion of interests of its members;
  • generation, transmission and distribution of power , revitalisation of land and water resources their use, conversion and communications relatable to primary produce;
  • insurance of producers on their primary producer;
  • promoting techniques of mutuality and mutual assistance;
  • welfare measures or facilities for the benefit of members as may be decided by the board;

Any other activity, ancillary or incidental to any of the activity referred to in clauses (a) to (i) which include extending of credit facilities or any other financial services to its members.[2]

Producer Company shall deal primarily with the producer of its active member.

Under Clause (a) sec 581A – An Active Member means a person who fulfils the quantum and period of patronage of company as specified by the article of Producer Company.

Contact for legal guidance & registration of producer company.


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