A Producer Company is a special type of company formed under Section 465 of the Companies Act, 2013 (earlier under Part IXA of the Companies Act, 1956).
It is meant for farmers, producers, or agriculturalists to work collectively for production, procurement, processing, marketing, and export of their produce — ensuring better income and professional management.
Key Features
Combines the benefits of a co-operative society and a private limited company
Limited liability and separate legal identity
Promotes mutual assistance, shared profits, and democratic decision-making
Members are “primary producers” (farmers, fishermen, artisans, etc.)
Can deal only with members’ produce and allied activities