Enhancing the bargaining power of farmers by pooling resources and produce.

Providing farmers with better access to markets and fair pricing for their produce.

Engaging in processing and value addition to increase profitability.

Offering support to individual farmers against market and environmental risks.

 Improving access to credit and financial services, including business loans.

Promoting sustainable agricultural practices and resource conservation.

Empowering farmers, especially women and marginalized groups, through collective action and decision-making.

• Focus: Crops such as cereals, pulses, oilseeds, and grains.
• Activities: Collective procurement, marketing, and value addition of agricultural produce.
• Example: Indian Organic Farmers Producer Company Ltd in Kerala, which focuses on organic farming practices and sustainable agriculture.

• Focus: Fruits, vegetables, and flowers.
• Activities: Cultivation, processing, and marketing of horticultural produce.
• Example: HOPCOMS (Horticultural Producers' Cooperative Marketing and Processing Society) in Karnataka, which engages in direct marketing of farm produce.

• Focus: Milk and milk products.
• Activities: Milk procurement, processing, and marketing.
• Example: Shreeja Mahila Milk Producer Company Limited in Andhra Pradesh, which collaborates with Mother Dairy to set up processing units.

• Focus: Fishing and aquaculture.
• Activities: Fishing, processing, and marketing of fish and seafood products.
• Example: Samarth Fisheries Producer Company in Maharashtra, which focuses on sustainable fishing practices and market access for fishers.

• Focus: Forest-based products.
• Activities: Collection, processing, and marketing of non-timber forest produce like honey, medicinal plants, and bamboo.
• Example: Vanashakti Producer Company in Madhya Pradesh, which works with forest-dependent communities for sustainable forest management.

• Focus: Supply of agricultural inputs.
• Activities: Manufacturing and distribution of seeds, fertilizers, pesticides, and machinery.
• Example: Krishi Utthan Producer Company in Uttar Pradesh, which provides quality agricultural inputs to its members.

• Focus: Cattle, poultry, and other livestock.
• Activities: Breeding, rearing, and marketing of livestock and their products.
• Example: Pashu Utthan Producer Company in Rajasthan, which focuses on improving livestock productivity and market access.

• Focus: Traditional crafts and textiles.
• Activities: Production, promotion, and marketing of handloom and handicraft products.
• Example: Kalamkari Handicrafts Producer Company in Telangana, which supports artisans in producing and marketing traditional crafts.

• Focus: Diverse agricultural and allied activities.
• Activities: Engaging in a combination of agricultural, horticultural, dairy, and other related activities.
• Example: Integrated Farmers Producer Company in Maharashtra, which combines crop production, dairy farming, and agro-processing.

• Focus: Providing services to members.
• Activities: Offering services like credit facilitation, training, and technology adoption.
• Example: Rural Development and Training Producer Company in Bihar, which focuses on capacity building and providing services to rural farmers

By pooling their resources, farmers can negotiate better prices for their produce and secure favourable terms for inputs. This collective strength reduces dependence on intermediaries and ensures fairer returns for their hard work.

FPCs facilitate easier access to credit and financial services. Banks and institutions are more willing to lend to an organized FPC, making it simpler for farmers to obtain financial support for investing in their farms. Government bodies also support such firms with finance and subsidies.

FPCs help farmers establish direct connections with buyers and processors, eliminating middlemen. By selling their produce directly, farmers can fetch better prices and save on marketing costs. Additionally, FPCs can help farmers explore markets beyond their local areas, giving their products broader exposure

FPCs enable farmers to collectively purchase inputs like seeds, fertilizers, and machinery in bulk at discounted prices. This reduces costs and makes farming more profitable, especially for small and marginal farmers who usually work with limited budgets

Farming is susceptible to various risks such as weather uncertainties and price fluctuations. Through FPCs, farmers can implement risk management strategies like crop insurance and diversification. This provides a safety net during difficult times and protects livelihoods.

FPCs act as platforms for farmers to exchange knowledge, experiences, and best practices. They organize training programs, workshops, and field visits to educate farmers about modern farming techniques, such as hydroponic farming. This promotes the adoption of innovative agricultural practices, increases productivity, and ensures sustainable farming in the long run.

As separate legal entities, FPCs provide limited liability protection to individual farmers, shielding their personal assets from business-related risks and liabilities. This encourages more farmers to participate without fear of personal financial loss.

The Indian government actively encourages the formation of FPCs and offers various incentives and support schemes. These include financial assistance, infrastructure development, and capacity-building programs, which further strengthen the position of farmers.

FPCs often provide training sessions and educational programs to help members improve their farming practices and stay updated with the latest agricultural developments. These initiatives enhance the skills and knowledge of farmers, leading to improved productivity and profitability

FPCs play a crucial role in empowering women and marginalized farmers by providing them with a platform to participate in decision-making processes, access resources, and improve their socio-economic status. For instance, women in Bokaro's Kathal Tola village transformed barren land into a profitable mango orchard through the support of a Farmer Producer Company, earning between Rs 45,000 to Rs 55,000 annually.

• Launched: February 29, 2020, by Prime Minister Narendra Modi.
• Outlay: 6,865 Crore till 2027-28.
• Nodal Ministries/Agencies: Ministry of Agriculture & Farmers Welfare, NABARD, Small Farmers' Agribusiness Consortium (SFAC), and others.

• Key Features:

• Handholding Support: Each newly formed FPO receives handholding support for a period of five years.

• Management Cost: Financial assistance of up to 18 lakhs per FPO for management costs for 3 years.

• • Matching Equity Grant: Up to 2,000 per farmer member, with a limit of 15.00 lakh per FPO, to enhance their equity base and creditworthiness.

• Credit Guarantee Facility: Project loans up to 2 crore per FPO from eligible lending institutions are covered by a credit guarantee, ensuring access to institutional credit. A dedicated Credit Guarantee Fund (CGF) of 1,000 crore (with equal contributions from GoI and NABARD) has been created for this.

• Cluster-Based Business Organizations (CBBOs): Implementing agencies select and manage CBBOs, which provide end-to-end support to FPOs for formation, promotion, and business development.

• One District One Product (ODOP): Focus on forming FPOs based on the ODOP cluster model to leverage geographical specialization.

• Convergence: Encourages convergence with schemes of other ministries like the Ministry of Food Processing Industries (for processing, branding, marketing subsidies), Ministry of Micro & Small Enterprises (for access to funds, capacity building), etc.

• Digital Integration: Initiatives like on boarding FPOs on the Open Network for Digital Commerce (ONDC) and converting FPOs into Common Service Centers (CSCs) for citizen-centric services.

To provide a medium to long-term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets.

FPOs are priority beneficiaries under AIF. They can access credit guarantee loans up to 2 crore with an interest subvention of 3% per annum. A significant portion of the total loan amount (5,000 crores out of 1 lakh Crore) is earmarked for FPOs.

• Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme:
  • FPOs are eligible beneficiaries for credit-linked capital subsidies for micro food processing units (e.g., 35% of eligible project cost up to 10 lakh). The scheme also supports common infrastructure, branding, and marketing.
• Integrated Cold Chain and Value Addition Infrastructure Scheme (under PMKSY):
  • Provides grants-in-aid (up to 35% to 50% of eligible project cost, maximum 10 crore) for integrated cold chain and preservation infrastructure facilities. FPOs are eligible beneficiaries.

A dedicated fund to support FPOs on three levers: credit facilitation, capacity building, and market linkage support.

For the promotion and nurturing of FPOs.

Part of the larger central scheme, managed by NABSanrakshan (a NABARD subsidiary), providing credit guarantee cover to financial institutions for loans to FPOs.

NABARD provides seed funding for initial operational expenses, financial support for promotion and capacity building, revolving money for working capital, and funding for infrastructure facilities like warehouses, cold storage, and processing units.

SFAC is a key agency mandated by the Ministry of Agriculture to support State Governments in the formation and promotion of FPOs.

SFAC implements schemes like the Equity Grant and Credit Guarantee Fund Scheme (EGCGS), which aims to enhance the viability and sustainability of FPCs, increase their creditworthiness, and boost member shareholding. SFAC also facilitates training for FPO Board of Directors and CEOs.

• Agricultural Marketing Infrastructure (AMI) Sub-scheme of ISAM:
  • FPOs can receive subsidies (e.g., 33.33%) for developing agricultural marketing infrastructure projects.
• Sub Mission on Agriculture Mechanization (SMAM):
  • Financial assistance for FPO Common Hiring Centers (CHCs) and Hi-Tech Hubs.
• National Bamboo Mission (NBM), National Beekeeping & Honey Mission (NBHM), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), National Mission on Natural Farming:
  • These schemes also have provisions or specific targets for FPO involvement and support for related activities.
• SIDBI (Small Industries Development Bank of India):
  • While primarily focusing on MSMEs, SIDBI offers various direct credit schemes that FPOs (especially those with 5 years of operations or involved in food processing) might be eligible for, including loans for machinery purchase, working capital, and common infrastructure. They also manage credit guarantee schemes.

• Minimum Members:
  • At least 10 individual farmers (producers).
  • Or, at least 2 Producer Institutions (e.g., existing cooperative societies, SHGs).
  • A combination of both (e.g., 10 individuals and 2 institutions).
  • There's no upper limit on the number of members in a Producer Company.
• Minimum Directors:
  • A minimum of 5 directors and a maximum of 15 directors. All directors must be producers.
• Minimum Authorized Capital:
  • While some sources mention a minimum authorized capital of 5 Lakhs, it's advisable to check the latest regulations from the Ministry of Corporate Affairs (MCA) as guidelines can change. Some schemes might offer stamp duty exemptions for authorized capital up to 15 Lakhs.
• Producer Status:
  • All members must be "producers" engaged in primary produce (agriculture, horticulture, animal husbandry, fisheries, forestry, beekeeping, etc.).

The entire process is largely online and handled through the Ministry of Corporate Affairs (MCA) portal. It's highly recommended to seek assistance from a Company Secretary (CS) or Chartered Accountant (CA) for smooth and compliant registration.

• Step 1: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  • Digital Signature Certificate (DSC): All proposed directors need to obtain a Class 2 or Class 3 DSC. This is an electronic signature used to sign e-forms for online submissions.
  • Documents for DSC: PAN Card, Aadhaar Card, photograph, email ID, mobile number.
  • Director Identification Number (DIN): Each director must have a unique DIN.
  • This can be applied for through the SPICe+ form during incorporation, or separately by filing Form DIR-3.
  • Documents for DIN: Self-attested identity proof (PAN card, Aadhaar), address proof, recent photograph.
• Step 2: Name Reservation
  • Choose a Unique Name: The name of the FPC must be unique and must end with the words "Producer Company Limited."
  • Apply for Name Approval: File Form SPICe+ Part A (formerly RUN form) with the Registrar of Companies (ROC) via the MCA portal. You'll propose two names in order of preference and explain their significance.
  • The ROC will check for availability and approve one name, usually within 20 days.
• Step 3: Draft Memorandum of Association (MoA) and Articles of Association (AoA)
  • These are crucial legal documents:
    • Memorandum of Association (MoA): This document defines the fundamental objectives, scope, and powers of the company. It outlines what the FPC can and cannot do. For FPCs, the objects must clearly relate to primary produce activities for the benefit of its members.
    • Articles of Association (AoA): This document lays down the internal rules and regulations for the company's management and operations. It covers aspects like share capital, voting rights, board meetings, general meetings, and member rights.
    • Affidavits: Affidavits from subscribers to the MoA, declaring their legal competency to act as subscribers.
    • Power of Attorney: Execute a Power of Attorney in favor of your consultant (CS/CA) to make necessary changes on your behalf.
• Step 4: Prepare Documents for Incorporation

              Gather all necessary documents for all proposed directors and the registered office:

•  Identity Proof of Directors/Members: PAN Card (mandatory), Aadhaar Card, Voter ID, Passport, Driving License.
• Address Proof of Directors/Members: Latest bank statement, electricity bill, mobile bill, telephone bill (not older than 2 months).
• Photographs: Passport-sized photographs of all directors and members.
• Producer Proof: A declaration stating that each member is a primary producer. This might require documents like a Khasra-Khatauni (land record), a letter from the Sarpanch, or ITR indicating agricultural income.
• Registered Office Proof:
  • If owned: Latest utility bill (electricity, gas, water, etc., not older than 2 months) and a No Objection Certificate (NOC) from the owner.
  • If rented: Rent agreement/lease deed and a NOC from the landlord, along with their utility bill.
• Step 5: Filing of Incorporation Application (SPICe+ Form)
  • All the prepared documents, along with the application for incorporation, are filed electronically using Form SPICe+ (Simplified Proforma for Incorporating Company electronically Plus) on the MCA portal.
  • This single form integrates applications for:
    • Company Incorporation (Part B)
    • DIN allotment
    • Mandatory issue of PAN
    • Mandatory issue of TAN (Tax Deduction and Collection Account Number)
    • Mandatory issue of EPFO (Employee Provident Fund Organization) registration
    • Mandatory issue of ESIC (Employee State Insurance Corporation) registration
    • Mandatory issue of Profession Tax registration (for Maharashtra)
    • Mandatory Opening of Bank Account for the Company
    • Allotment of GSTIN (Goods and Services Tax Identification Number), if applicable.
  •   Also file e-MoA (INC-33) and e-AoA (INC-34) along with SPICe+.
  •   An AGILE-PRO form is also filed for GST, EPFO, ESIC, Bank Account, and Professional Tax  Registration.

• Step 6: ROC Verification and Certificate of Incorporation
  • The Registrar of Companies (ROC) will scrutinize the application and attached documents for compliance with legal requirements.
  • If satisfied, the ROC will issue the Certificate of Incorporation (COI), which is the legal proof that the company has been constituted. This usually takes around 10-15 working days after the final submission, depending on ROC processing times.
  • Along with the COI, the company will also receive its Corporate Identification Number (CIN), PAN, and TAN.

• Open Bank Account: Use the Certificate of Incorporation, PAN, TAN, MoA, and AoA to open a current bank account in the FPC's name.
• Statutory Registers: Maintain all statutory registers as required by the Companies Act, 2013.
• First Board Meeting: Conduct the first board meeting within 30 days of incorporation.
• Annual General Meeting (AGM): FPCs must hold at least 4 board meetings every year (at least once every three months) and an Annual General Meeting.
• Audit: Get annual accounts audited by a Chartered Accountant.
• Annual Filings: File annual returns and financial statements with the ROC.
• Other Registrations: Obtain any other necessary licenses or registrations relevant to the FPC's specific activities (e.g., FSSAI license if involved in food processing, GST registration if turnover exceeds thresholds).
• Government Scheme Benefits: Explore and apply for various government schemes available for FPCs (like the 10,000 FPO scheme, AIF, etc.) to avail financial and technical support.

• Comprises all shareholder farmers (minimum 10).
• Holds ultimate decision-making authority.
• Approves major decisions such as:
  • Appointment/removal of directors
  • Approval of financial statements
  • Business strategy and major investments
• Meets at least once a year (Annual General Meeting).

• Typically 5 to 15 directors, elected by the General Body.
• Responsible for:
  • Strategic planning and policy-making
  • Monitoring operations and compliance
  • Approving budgets, loans, and business plans
• Holds regular Board Meetings (quarterly or more)

• Elected by the Board or General Body.
• Presides over meetings and provides leadership.

• Appointed by the Board of Directors.
• Handles day-to-day operations and management.
• Reports to the Board of Directors.
• Coordinates with staff, stakeholders, and external agencies.

• Includes:
  • Accountant – manages books and compliance
  • Procurement Officers – handle produce collection
  • Marketing/Sales Staff – manage buyer linkages
  • Technical Experts – for training and advisory
• May also include IT/Tech, Logistics, and Admin staff as needed.

• Formed for specific functions:
  • Audit Committee
  • Procurement/Marketing Committee
  • CSR/Training Committee
• Include directors or member representatives.

• NGOs/Resource Institutions (RIs)
• Government agencies (SFAC, NABARD, ATMA)
• Financial Institutions (Banks, NBFCs)
• Private/CSR Partners and Buyers

Members (Owners)
                          ⬇
Board of Directors (Policy & Oversight)
                          ⬇
CEO (Execution & Coordination)
                          ⬇
Staff/Employees (Operations)

• Commodity: Grapes, vegetables, fruits
• Achievements:
• • India’s largest FPO with over 10,000 farmer members.
  • Operates a modern processing unit for grapes and tomatoes.
  • Exported produce to Europe, Middle East, and Southeast Asia.
  • Revenue exceeding ₹100 crore annually.

Built cold storage, packhouse, and traceability system

• Commodity: Cotton, Soyabean
• Achievements:
• • Focused on improving cotton prices through direct market linkage.
  • Partnered with ginning mills and traders to eliminate middlemen.
  • Introduced bulk purchase of agri-inputs, saving costs for members

• Commodity: Dairy and agri-commodities
• Achievements:
  • Developed a milk collection and chilling network.
  • Started small-scale value-added products like paneer and curd.
  • Enabled women SHG integration into dairy supply chain.

• Commodity: Pulses, soyabean, tur
• Achievements:
  • Successfully participated in NAFED/NCCF MSP procurement.
  • Used digital platforms for mandi price discovery.
  • Created a village-level procurement model improving transparency.

• Commodity: Fruits and vegetables
• Achievements:
• • Tied up with urban retail chains for direct supply.
  • Adopted eco-friendly packaging and branding.
  • Set up solar-powered cold storage with CSR support.

• Commodity: Organic Products
• Achievements:
• • Aggregated produce from multiple villages.
  • Partnered with processors and exporters.
  • Enhanced price realization by over 30% for members.

• Limited access to credit and working capital.
• Lack of professional management and governance.
• Poor market linkage and pricing issues.
• Weak infrastructure for storage and processing.
• Low awareness of government schemes and legal compliance.

• Empower small and marginal farmers through collective strength.

• Generate employment in rural areas.

• Improve income through value addition and marketing.

• Strengthen the rural economy through organized agri-business.

• Registered under Section 378A to 378ZU of the Companies Act, 2013.
• Treated as a private limited company with limited liability.
• Minimum 10 producers required for incorporation.
• Must function as a producer-owned, democratically governed entity.

• Managed by a Board of Directors elected by members.
• Key positions: CEO, Accountant, Technical staff.
• Regular General Body and Board Meetings required.
• Transparent decision-making and accountability to members.

• Maintain books of accounts as per Companies Act and FPO-specific formats.
• Annual statutory audit by a certified Chartered Accountant.
• Filing of financials (AOC-4), annual returns (MGT-7), and ITR with MCA and Income Tax Dept.

• Open current accounts in the FPO name.
• Access to government-backed schemes (NABARD, SFAC, etc.).
• Eligible for credit from commercial banks, co-operative banks, and NBFCs.

• Direct selling to institutional buyers, exporters, processors.
• Participation in government procurement (MSP, PSS).
• Branding, packaging, and marketing of produce under FPO brand.
• Partnership with e-commerce platforms and agri-tech startups.

• Use of mobile apps for market rates, weather, input advisory.
• Adoption of digital accounting, MIS, CRM systems.
• E-marketing and agri e-commerce platforms (eNAM, ONDC).
• Use of farm mechanization and automation tools.

• Training in governance, financial literacy, and compliance.
• Exposure visits and leadership development.
• Skill-building in marketing, agri-processing, and value addition.
• Support from institutions like NABARD, MANAGE, SFAC.

• Formation of FPOs based on common commodities and geography.
• Integrated value chains from production to consumption.
• Development of Common Facility Centres (CFCs) and agri-infrastructure.

• Taluka/District/State-level federations of multiple FPOs.
• Shared services: processing, warehousing, branding, marketing.
• Collective bargaining with buyers, suppliers, and institutions.

• Technical assistance, funding, and incubation support from NGOs.
• CSR initiatives of private companies for FPO development.
• Public-private partnerships for scaling FPOs.

• Any farmer or producer can apply for membership.
• Submit application form with basic documents (ID, landholding proof).
• Pay a nominal share capital amount.
• Participate in meetings and benefit from collective services.