Our prime minister promised to double farmers’ Income by 2022. Thus, the government is promoting the concept of the “Producer Company” to fulfill their commitment.
A producer company is a hybrid between a private limited company and a cooperative society. The objective of the Producer Company is production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production 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.
Producer company shall have a full-time Chief Executive to be appointed by the Board amongst persons other than the members.
Every Producer Company shall have an internal audit of its accounts carried out in such intervals and in such manner as specified by its articles, by a Chartered Accountant.
Producer companies are a great concept to mobilize farmers together, eliminate middlemen, with greater market viability and bargaining power. It has the potential to transform Indian agriculture. What has changed is that the government has started treating agriculture as a business, granting loans, formulating schemes, this helps uplift, marginalized farmers. The government is taking every step to ensure and provide more benefit to the Farmers.