{"id":48012,"date":"2022-09-02T14:30:55","date_gmt":"2022-09-02T09:00:55","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=48012"},"modified":"2022-09-02T14:30:56","modified_gmt":"2022-09-02T09:00:56","slug":"core-objectives-of-farmer-producer-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/","title":{"rendered":"Core Objectives of Farmer Producer Company"},"content":{"rendered":"\n<p>On the recommendation of Y.K. Alagh, an expert committee led by noted economists set up producer companies in 2002 by incorporating a new chapter into the Companies Act of 1956. The<a href=\"https:\/\/corpbiz.io\/producer-company-registration\"><strong> producer company<\/strong><\/a> is a corporate body registered as a Producer Company under the Companies Act, 1956. Its principal activities consist of processing, grading, procurement, production, handling, pooling, harvesting, marketing, selling, export of primary produce of the members or import of goods or services for their benefit. It also includes promoting mutual assistance, financial services, welfare measures, and insurance for producers or their primary produce. Further, we will be discussing the objectives of Farmer Producer Company.<\/p>\n\n\n\n<p>The main idea behind the FPOs is that the farmers who produce agricultural products can form groups and register themselves under <strong>the Companies Act of 2013<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong>[1]<\/strong><\/a><\/sup>. Now we will discuss the objectives of Farmer Producer Company <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Objectives_of_Farmer_Producer_Company\" >Objectives of Farmer Producer Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Functions_of_Farmer_Producer_Company\" >Functions of Farmer Producer Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Benefits_of_Farmer_Producer_Company\" >Benefits of Farmer Producer Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Benefits_to_a_member_of_Farmers_Producer_Companies\" >Benefits to a member of Farmers Producer Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Problem_Faced_by_Farmers_Producer_Companies\" >Problem Faced by Farmers Producer Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/core-objectives-of-farmer-producer-company\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Farmer_Producer_Company\"><\/span>Objectives of Farmer Producer Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing are the main Objectives of Farmer Producer Company<\/p>\n\n\n\n<ul><li>Harvesting, Procurement, Pooling,\nProduction, Selling, Grading, Handling, Marketing, export of primary produce of\nmembers or import of goods or services for their benefit.<\/li><li>Processing includes drying, brewing,\nventing, canning, preserving, distilling and packaging the produce of its\nmembers.<\/li><li>One of the main objectives of Farmer\nProducer Company is rendering technical services, training, education,\nconsultancy, research and development and all other activities to promote its\nmembers&#8217; interests.<\/li><li>Revitalization of land and water\nresources, Generation, Transmission and Distribution of Power, their use,\ncommunications and conservation relatable to primary produce.<\/li><li>Sale or supply of machinery, manufacture,\nequipment or consumables mainly to its members.<\/li><li>Promoting mutual assistance, financial\nservices, insurance of producers, welfare measures, or their primary produce;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Functions_of_Farmer_Producer_Company\"><\/span>Functions of Farmer Producer Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nFarmer Producer Company or FPC is a group of farmers that work together to\nincrease their revenue &amp; enhance their standard of life. This company can\nbe formed in India with ten members and two institutions. More than 80% of\nfarmers are unorganized &amp; have tiny\/marginal holdings. This company\nencourages farmers and assists them in reaching their economic potential by\npursuing the following goals.<\/p>\n\n\n\n<ul><li>Production<\/li><li>Procurement <\/li><li>Grading and harvesting of vegetables and\nfruits<\/li><li>Poling and Handling<\/li><li>Agricultural Product Marketing<\/li><li>Exporting, Importing and Selling\nAgricultural Products.&nbsp;&nbsp;&nbsp; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Farmer_Producer_Company\"><\/span>Benefits of Farmer Producer Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing are the benefits of Farmer Producer Company <\/p>\n\n\n\n<ul><li>The liability is limited to the unpaid\namount of shares held by them.<\/li><li>It is a hybrid of the Company and\nCo-operative Society and enjoys the benefits of professional management of a\nPrivate Limited Company.<\/li><li>The farmer producer companies are\nregistered under the Companies Act 2013, which is central legislation.<\/li><li>There is no maximum number of members, and\nit can be increased as per need and feasibility.<\/li><li>Producer Institution and Individual can be\nadmitted as members.<\/li><li>The farmer producer company with an annual\nturnover of more than 100 Core are required to pay tax on profit derived from\nfarm-related Activities.<\/li><li>The producer company&#8217;s board can engage\nprofessionals to manage its office bearers or Directors.<\/li><li>Government\/Non-government organizations,\nbanks and other financial institutions provided financial support to farmers\nProducer Company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_to_a_member_of_Farmers_Producer_Companies\"><\/span>Benefits to a member of Farmers Producer Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nbenefits to the member of Farmers Producer Company are mentioned below<\/p>\n\n\n\n<ul><li>Better Efficiency <\/li><li>More Income to Producer<\/li><li>Equal Voting Rights for members<\/li><li>Limited Liability<\/li><li>Financial Assistance from Company<\/li><li>A platform for government Initiatives<\/li><li>Entitled for Insurance<\/li><li>Educational and Technical Services<\/li><li>Export and participation in commodity\nexchanges<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Problem_Faced_by_Farmers_Producer_Companies\"><\/span>Problem Faced by Farmers Producer Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nfollowing are the problems faced by the Farmers Producer companies follows.<\/p>\n\n\n\n<ul><li>There is a restriction on trading in the\nshare of Farmer Producer Company; as of now, there is no exit route for\ninvestors. The non\u2013producer cannot invest in the equity of these companies. <\/li><li>Since Farmers Producer Company is a\nprofit-oriented company with limited access to get a donation, these companies are\nprofit-oriented organizations with limited avenues to get donations. The banks\nare unfamiliar with the concept, so these companies have limited access to\nbanks.<\/li><li>For trading in agricultural products, it\nmust have APMS \u2013 Agricultural Produce Marketing Committee license to there is needed\nto make efforts to promote nature producer companies.<\/li><li>Hence Agricultural Income is exempted from\ntax; it would be appropriate that Farmers Producer Company is also given\nexemption set by farmers.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In this article, we majorly discuss the main Objectives of Farmer Producer Company. Further, we have also discussed the Lack of amenities and land fragmentation makes it challenging for most farmers in India to attain good value for the primary output. Regarding purchasing at the lowest prices, getting access to financing and loans, adopting new technologies &amp; developing direct links to the market, producers in India benefit from the economies of scale provided by producer businesses.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/farmer-producer-company-registration-process\/\">Farmer Producer Company Registration Process: Explained<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On the recommendation of Y.K. Alagh, an expert committee led by noted economists set up producer companies in 2002 by incorporating a new chapter into the Companies Act of 1956. The producer company is a corporate body registered as a Producer Company under the Companies Act, 1956. Its principal activities consist of processing, grading, procurement, [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":48013,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[235],"tags":[2674],"acf":{"service_id":"62"},"authorName":"Saiyam Shah","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/07\/MicrosoftTeams-image-76.jpg","authorDescription":"Saiyam Shah has done his LL.M in Business Law from Amity Institute of Advanced Legal Studies \u2013 Amity University. His area of interest is legal research related to Indirect \u2013 Tax and Company law. He has prior experience in Tax litigation, dealing with various Income \u2013 Tax Assessments and has good drafting skills in filing arguments and replying to Income \u2013 Tax Notices.","postViews":7335,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/48012"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=48012"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/48012\/revisions"}],"predecessor-version":[{"id":48023,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/48012\/revisions\/48023"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/48013"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=48012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=48012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=48012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}