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Overview
A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living and ensure a good status of their available support, incomes and profitability. Producer Company having their business objective Procurement,Production,Harvesting,Grading,Pooling,Handling,Marketing,Selling, or Export of the primary produce of the Members or import of goods or services for their benefit. A producer company is a hybrid between a private limited company and a cooperative society. It combines the goodness of a cooperative enterprise and the vibrancy and efficiency of a company. It accommodates the unique elements of cooperative business with a regulatory framework similar to that of a private limited company.
Types of Producer Companies
Production Businesses
Production, Procurement manufacture of its members and others' primary producer is the producer companies' primary function.
Technical Service
Any business that offers technical assistance to the producers, Provides training and educational services, or conducting research and development can register as a Producer in India.
Marketing Businesses
A business involved in the marketing or promoting the primary produce or provision of education services to members and others can also constitute itself as a Producer company.
Finance Business
A business financing producing activities then be it production, or marketing development it can register itself as a producer company.
Infrastructure business
The business involved in providing infrastructure to the producers, whether in the form of electricity, water resources, irrigation techniques, or consultation regarding the same, may also constitute them self as a Producer company.