What is a Producer Company

A producer company is a body corporate having object or activities specified in section 581B and which is registered as such under the provision of the Act.

Objects of a Producer Companies under Section 581B(1) of the Companies Act, 1956

The objects of a producer company may be one or all of the following matters:

1. Production, harvesting, procurement, grading, pooling, handing, marketing, selling, export of primary produce of the members or import of goods or services for their benefit.
2. Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of the produce of its members.
3. Manufacturing, sales, supply of machinery, equipment, or consumables to its members.
4. Generating, transmission, and distribution of power, revitalization of lands and water resources, their use, conservation and communication relatable to primary produce.
5. Providing education on the mutual assistance principles to its members and others.
6. Rendering technical services, consultancy service, training, research and development and all other activities for the promotion of the interest of its members.
7. Insurance of producers or their primary produce.
8. Promoting techniques of mutuality and mutual assistance.
9. Welfare measures or facilities for the benefit of the members as may be decided by the board.
10. Any other activity, ancillary or incidental to any other activities mentioned above or other activities which may promote the principles of mutuality and mutual assistance amongst the members in any other manner.
11. Financing of procurement, processing, marketing or other activities mentioned above which include extending of credit facilities or any other financial services to its members.