Producer Company - Meaning And History
Updated: Jun 22, 2022
History of Producer Company
India's economy is mostly based on agriculture. Agricultural activities provide a living for around 60% of the population. However, India's primary producers and farmers have long struggled.
To address these issues, the Indian government formed an expert committee chaired by economist Y.K. Alagh to investigate the situation. They introduced the concept of producer corporations to the Indian economy in 2002. Since then, they've aided primary producers in obtaining input, financing, production technology, and market access, among other things.
Meaning of Producer Company
A producer company is a legally recognized group of farmers/agriculturists with the goal of raising their living standards and ensuring good status of their available assistance, earnings, and profitability. A Producer Company can be founded by ten individuals (or more) or two institutions (or more) or a mix of both (10 persons and two institutions) with one of the following business objectives:
Importation of commodities or services for the advantage of the members' primary production.
The primary goal of the producer company is to make it easier to incorporate co-operative businesses as corporations and to convert existing cooperative businesses into corporations.