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Producer company can be formed by the farmer cooperatives, it tends to improve their standard of occupation.

Mostly, the life of a farmer is under the sorrow situations to be dealt with the agricultural and financial needs. Hence, Government of India has analyzed and introduced this system of Producer company in scope of solving their issues.

It is primarily support the agriculture and post-harvest processing activities.

Through this formation, the farmer’s cooperative will be able to reach out the government easily for their agricultural needs like labor, technological advancements, policy changes, etc.,

Minimum ten or more producers (Individuals) can join together to form a producer company No upper limit on the number of members.

Or, Two or more producer institutions can form a producer company.

A minimum capital of Rs.5lakh is required to incorporate a producer company.

There should be minimum 5 directors (maximum of 15) in a producer company.

Ministry of Corporate Affairs is the governing body of “Producer Company” in India.