Producer Company registration is open to anyone engaged in farming and other agricultural pursuits.
According to the Companies Act, a Producer is “any person engaged in any activity linked with or relating to any primary produce.” A Producer Company is a business entity whose primary purpose is to produce, harvest, procure, grade, pool, handle, market, sell, export, or import the primary produce of its Members or the goods and services needed by its Members.
Producer Companies provide for the appointment of agriculturist members, the acceptance of deposits in the form of RD/FD and the provision of maturity, and the distribution of loans to farmer members, all of whom can be charged interest.
