Given the increased policy and intervention focus on producer companies, it becomes imperative to understand exactly how many there are.
On July 5, 2019, the Centre announced a plan to promote 10,000 new farmer producer companies over the next five years.
India already has many such companies, which have been registered since they were introduced in 2002 through an amendment to the Companies Act. While registered under that Act, they have several restrictions in line with principles of mutual cooperation: for example, they can have only producers as shareholders, with voting rights based on one-member-one-vote.
Academics, policy-makers and social sector organisations across the spectrum view these companies as critical components of interventions designed to improve the livelihoods of India’s farmers.
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