A producer company is a legal entity registered under Company Act,2013. Produce includes the products yield through farming. A Producer company can follow the objectives of the business under production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit.
The Producer company is a separate legal Entity which can be formed by ten or more individuals or two or more institutions dealing with agricultural production or post-harvesting processes. The main advantage of a producer company is it enjoys a separate legal entity and offers a limited liability and perpetuity. It also offers greater creditability than an unregistered organization of farmers. The Producer company also if fully entitled to accept deposits from or give loans to its agricultural members.
Arama can register a producer company within 30 days, depending upon the ROC processing.