Farmer Producer Organisation is a company registered with the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. Produce is a group of farm-produced crops and goods, including fruits and vegetables.

Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions may form a Company as a Producer Company under this Act.

The Producer Company shall become a body corporate as if it is a private limited company to which the provisions contained in this Part apply, without, any limit to the number of Members thereof, and the Producer Company shall not, under any circumstance, become or be deemed to become a public limited company under this Act.

The concept of Producer Company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company. A producer company is a hybrid between a private limited company and a cooperative society. It combines the goodness of a cooperative enterprise and the vibrancy and efficiency of a company. It accommodates the unique elements of cooperative business with a regulatory framework similar to that of a private limited company.