Farmer Producer Organisation (FPO): A Conceptual Study about Farmer Producer Company (FPC)

Abstract

Agriculture and Allied Sectors are the pillar of the Indian economy, the involvement of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country are 17.6%, 18.4% and 20.2% in the previous three years 2018-19, 2019-20 and 2020-21 respectively. Keeping in mind the important issues of farmers, agriculturalists (jointly termed as producers) the concept of ‘Producer Company (PC)’ was declared in 2002. Producer Company refers to a legal body for farmers with the aim to improving the living standard, status, better income and profitability of the farmers. A Producer company owns the characteristic and regulatory framework of a cooperative society and a private limited company. This article concentrates on the concept of a Farmer producer company (FPC) or Producer Company (PC) like the basic objectives, activities, benefits, registration processes, the formation, memorandum and article of association of the FPC. Through the article researcher try to highlight the objectives of the other legal form of Producer Organisation (PO) like Cooperative Society Act and Multistate Cooperative Society Act and highlight the objectives of non - profit legal form of Producer Organisation (PO) like Society registered according to the Society Registration Act, Public Trust registered according to the Indian Trust Act and company registered according to the Section 25 of Indian Companies Act, 1956, as modified as Section 8 in The Companies Act, 2013. And the article also mentioned that there is an option for interstate cooperative societies convert as a Producer Companies (PCs).