Producer Company are those companies , which has the prime 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 we can define a producer company as a Company deals primarily with agriculture and post harvest processing activities.
Mostly the Farmers in India are small and marginal farmers with very few land holdings. Also the agricultural is one of the unorganised sector. With the formation of producer companies the agricultural activities can be performed in a more formal way and organise form and the livelihood of farmers can be improved. Thus the concept of producer company is aimed at empowering farmers by creating more of farmers organized to work as a Producer Company. The registration process of producer company is same as that of private limited company.
For the registration of a producer company the following combination of members is necessary.