What is Kisan producer company

Kisan Producer Company under the Companies Act 2013:

India has been an agricultural country since the beginning, even today 60% of its population lives through agriculture-based industries, but in today's time agriculture is facing many difficulties such as water for irrigation. Therefore, a committee of experts was constituted by the Central Government to get solutions from the problems being faced by the Kisan, which was headed by an economist Y.K.Alaag. And it was mentioned by him in his report that the principle of producer company should also be included in the Companies Act. Producer company is a company that can provide facilities and solutions to the problems faced by the Kisan at all levels. It is an institution that promotes the basic, social and economic development of Kisan and keeps them forward for their growth.

What is Kisan Producer Company?

Kisan Producer Company-

Kisan Producer Company is a statutory recognized agricultural corporate body, whose objective is to provide solutions to the problems related to agriculture and to move forward for their upliftment, through which increasing the income and profit of the Kisan by increasing the production by utilizing the limited resources available. And to improve and increase the standard of living of the Kisan, under the Companies Act 2013, 10 such persons who are associated with primary products, they can establish a Kisan producer company together or two Kisan' institutions together can also establish a Kisan producer company. The main objective of the Kisan Producer Company is to buy, sell, collect, handle, grading, marketing, exporting the primary products of its members.

Apart from this, to help its members, new technologies and services have to be imported from abroad to reach their members.

The Producer Company as a corporate body is the central pillar that helps the Kisan to take their primary product to the wider market on the basis of their own standards, by acquainting them with the latest technologies that will enhance their standard of living.

What are the objectives of a producer company?

Basically, Producer Company is a body corporate registered under the Companies Act 2013 which is mandated to operate for the attainment of the following objectives or objectives related to these

1. Buying, selling, marketing, collecting, grading, managing the primary products of its members and importing new technology, new produce and essential services for its members.
2. To provide technical services, consultancy services, necessary training to its members, and to conduct studies, research and research for the promotion of their interests.
3. To generate, transfer, distribute electricity, renovate lands, arrange water for irrigation of crops, to supply electricity to increase the primary product of its members
4. To provide insurance facilities for the protection of their produce, to provide financial assistance for the mutual development of its members.

What are the silent status of producer company?

Silent status of producer companies:

1. Producer Company can be owned by only such persons who are basically engaged in primary product or activities related thereto i.e. who are Kisan or engaged in activities related to agriculture
2. It is necessary for every member to be a producer of the primary product
3. According to the principle of limited liability, the liability of the members of the producer company is limited to the amount of their shares outstanding.
4. The word Producer Company Limited is used at the end of the name of the producer company.
5. The Producer shall be registered at the time of Company Registration in India as if a Private Limited Company is registered and the provisions applicable thereto and the statutory requirements relating to Management/Operation shall apply to the Producer Company.
6. The Producer Company is required to compulsorily comply with the provisions mentioned in Part 19A of the Companies Act.
7. Provisions on the maximum limit of members of the company do not apply to the producer company.