Legal
Producer Company in India
T
he concept of Producer Company in India was introduced to allow cooperatives to function as a corporate
entity under the Ministry of Corporate Affairs. The Companies Act defines Producer as any person engaged
in any activity connected with or relatable to any primary produce (Produce: “things that have been
produced or grown, especially by farming”). A Producer Company is thus a body corporate having an object
that is one or all of the following
Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary
produce of the Members or import of goods or services for their benefit.
ACTIVITIES THAT CAN BE CARRIED ON BY PRODUCER COMPANY:
The Producer Company must deal primarily with the produce of its active Members and is allowed to carry
on any of the following activities by itself or through other entities – on behalf of the members.
1. processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce
of its Members;
2. manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
3. providing education on the mutual assistance principles to its Members and others;
4. rendering technical services, consultancy services, training, research and development and all other
activities for the promotion of the interests of its Members;
5. generation, transmission and distribution of power, revitalization of land and water resources, their
use, conservation and communication relatable to primary produce;
6. insurance of producers or their primary produce;
7. promoting techniques of mutuality and mutual assistance;
8. welfare measures or facilities for the benefit of Members as may be decided by the Board;
9. any other activity, ancillary or incidental to any of the activities which may promote the principles of
mutuality and mutual assistance amongst the Members in any other manner;
10. Financing of procurement, processing, marketing or other activities which include extending of credit
facilities or any other financial services to its Members.
www.Venture-Care.com/Magazine
December 2017
16