A company or a body corporate having any object like production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit is called as Producer Company.
Under companies producer define 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”).
Under Company Law 1956 Objects of Producer Company
The objects of the Producer Company shall relate to all or any of the following matters, namely:
- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
- Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members.
- Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
- Providing education on the mutual assistance principles to its Members and others.
- Rendering technical services, consultancy services, training, research and development, and all other activities for the promotion of the interests of its Members.
- Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce.
- Insurance of producers or their primary produce.
- Promoting techniques of mutuality and mutual assistance.
- Welfare measures or facilities for the benefit of Members as may be decided by the Board.
- Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner
- Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.
- Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.