A Farmer Producer Company (FPO) or Produce Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A producer organisation can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. In some forms like producer companies, institutions of primary producers can also become member of PO. Producer companies are basically a corporate body registered under the act which seeks to facilitate farmers to pool their resources and work as a collective team. And a producer company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions). 

    Agriculture is the backbone of India. It acts as a primary source of livelihood for about 58% of India’s population. Producer Company primarily deals with agriculture and post-harvest processing activities. It’s mainly has the objective of 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. A Producer Company should have a minimum of 10 members or two producer entities or a combination thereof can form a Producer Company. Thus, the concept of Producer Company Registration is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.

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Our Step-By-Step Registration Process

1. Fill Online Application Form
2. Upload Required Documents
3. Make Payment
4. Review of Documents
5. Your Work Is Completed

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Benefits of Producer Company

Government Schemes

There are various schemes launched by the Government of India for the support of FPOs; such as – Equity Grant Fund Scheme (EGFS), Credit Guarantee Fund Scheme (CGFS), National Rural Livelihoods Mission (NLRM).

Owning Property

A producer company being a separate legal entity, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.

Tax Benefits

Agricultural income is exempted under Section 10(1) of the Income Tax Act, 1961. However, exemption on the agricultural income varies based on the activity carried out by the producers or farmers.

Loans & Investment

The members of the producer companies are initial producers; hence they need finance from time to time for farming. NARBAD Bank is inaugurated by the government to support farmers’ producer companies.

Limited Liability

The members of the producer company or producer organisation have limited liability towards the debts and obligations of the company. Their personal assets remain unaffected in any case of loss or winding up.

Documents required

• PAN Card
• Self attested PAN Card issued by I.T. Department
• Aadhar Card
• Self attested Aadhar Card issued by UIDAI
• Id Proof
• Self attested id proof (Voter ID/DL/Passport)
• Address Proof
• One month bank statement or telephone bill
• Photographs
• A latest passport-size colour photographs
• Utility Bill
• Latest electricity bill with NOC/ Rent Agreement