Chahat Choudhary

BCH/23/12
Concept and Meaning
As per Section 378A of the Companies Act "Producer Company”
means a body corporate having objects or activities specified in
section 378B and registered as Producer Company under this
act or under the Companies Act, 2013. Producer Company
deals primarily with the produce of its active Members for
carrying out any of its specified objects.

"Producer" means any person engaged in any activity

connected with or relatable to any primary produce.
Objects of Producer Company [Sec. 378B]
The objects of the Producer Company relate to all or any of the following matters:
• production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of
primary produce of the Members or import of goods or services for their benefit;
• processing including preserving, drying, distilling, brewing, vinting, canning and packaging of
produce of its Members;
• manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
• providing education on the mutual assistance principles to its Members and others;
• rendering technical services, consultancy services, training, re-search and development and
all other activities for the promotion of the interests of its Members;
• insurance of producers or their primary produce;
Primary Produce
Producer Company deals only with the "primary produce" of its members, which
means:
• produce of farmers, arising from agriculture including animal husbandry,
horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-
vegetation, bee raising and farming plantation products, or from any other
primary activity or service which promotes the interest of the farmers or
consumer; or
• produce of persons engaged in handloom, handicraft and other cottage
industries;
• any product resulting from any of the above activities, including by-products of
such product
• any product resulting from an ancillary activity that would assist or promote
any of the aforesaid activities or anything ancillary thereto;
Formation of Producer Company and its Registration [Sec. 378C]
• A Producer Company may be formed by:
— any 10 or more individuals, each of them being a producer, or
— any two or more Producer institutions, or
— a combination of 10 or more individuals and Producer institutions.
• The objects for which a Producer Company is to be formed must be as
specified in Section 378B of the Act.
• The requirements and provisions of the Act in respect of registration, as per
the Act must be complied with. The necessary documents including
Memorandum of Association and Articles of Association must be submitted
to the Registrar of Companies.
• The last words of the name of such Company shall be "Producer Company
Limited".