The company registered under the Companies Act, 2013, which has the objective of production, pooling, handling, marketing, selling, export harvesting, procurement, grading of primary produce of the Members or import of goods or services for their benefit are termed as a producer company. 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 little and negligible agriculturists with land possessions of under 2 hectares. This fracture in ranchers and homestead lands, prompts disorder and it isn't reasonable for Indian agriculturists to embrace the most recent advances. By association of these agriculturists into maker organizations, economies of scale can be opened and the job of ranchers can be made strides. In this manner the idea of Producer Company is gone for engaging ranchers by making groups of agriculturists sorted out as a Producer Company.
1) A Producer Company is a lawful element and a juristic individual built up under the Act. Along these lines, a producer company exists in a lawful limit and can claim property and furthermore bring about obligations. The individuals i.e. Chiefs of a maker organization have no obligation to the loan bosses of a maker organization.
2) The Board of Management of a producer company can be effortlessly changed by documenting straightforward structures with the Registrar of Companies. The Board of Management of a maker organization controls the exercises of the maker organization.
3) A producer company has perpetual succession that is proceeded or continuous presence until the point that it is legitimately broken up. A producer company, being a different lawful individual, is unaffected by the passing or other take-off of any part however keeps on being in presence independent of the adjustments in participation.
4) A Producer Company being a juristic individual, can secure, claim, appreciate and distance property in its own name. No part can make any guarantee upon the property of the producer company as long as it is a going concern.
5) A Producer Company appreciates better validity when contrasted with unregistered producer organisation. Produce Company are enrolled and checked by the Central Government. Producer organisations are then again administered and observed by State Governments.