A Producer Company is company similar to co-operative of Farmers or a Co – operative of such other co-operatives consisting of farmers. A Producer Company can be incorporated with 10 or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B of the Companies Act, 2013 and complying with the requirements of Part IXA and the provisions of the Act in respect of registration, may form an incorporated Company as a Producer Company.
A producer company mainly acts for the benefit of it’s members all of whom are farmers which can be in form of collective bargain, imparting of special skills related to farming, application to the government for subsidiary or other matters as may be permitted by the Act.