1 :-
Production Businesses
Production, Procurement manufacture of its members and others' primary
producer is the producer companies' primary function.
2 :-
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.
3 :-
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.
4 :-
Finance Business
A business financing producing activities then be it production, or marketing r
development it can register itself as a producer company.
5 :-
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 themself as a Producer company.
What are the Benefits of Registering Producer Companies?
Producer Company - Key features
Limited Liability
The members of a producer company have unlimited liability as the company is an
entity in itself. The amount invested in the business would be lost, and the
directors' property would be safe.
Better Management
Rather than a single farmer managing their entire business, producer companies' work
is divided among the directors. The entity is governed by the Management Board,
which has a tenure of five years.
A producer company has a separate legal existence, which means that it is not
affected by any of its members' death.
NABARD Loan for Producer Companies
Producer Companies were introduced to allow farmers cooperatives to function as a
corporate entity under the MCA. Here we are going to talk about the loan provided by
NABARD for a producer company in India. fin
Producer Organization Development Fund
NABARD set up a Rs. 50 crore Producer Organization Development for supporting
producer organizations and adopting a flexible approach to meet the producers'
needs.
This scheme grants financial support in the form of loans or grants provided for any
registered Producer Company. MACS, Industrial Cooperative Societies, and other
registered federations set up by the producers.
This PODF Producer Organization Development Fund will support the producers'
organization or producer companies by providing credit support, improving capacity,
and building market linkage.
In this scheme, activities fall within the agriculture, allied, and non-farm
sectors. Various activities like harvesting, storage, processing, packaging, and or
marketing of the produce/ product is eligible for support under the PDOF fund.
The Producer Company should be formed by the primary producers of agriculture and
the non-farm sector. The producer organization or company must only for the benefit
of the producers.
Further, the producer company's shares cannot be sold to non-producers and if an
existing member wants to leave the producer company.
Shares can only be purchased either by existing producers or by enrolling a new
primary producer.