Producer Company is a group of people involved in the production of primary produce or having one more goals relating to primary produce. In a producer company, you can make agriculturist members and accept deposits in form of FD/ RD and provide them maturity as well as distribute loans to your farmer members and charge interest from them. Producer Companies is a company registered under the Companies Act 2013 and shall carry on any of the following activities:
(a) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit;
(b) Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members;
(c) Manufacture, sale or supply of machinery, equipment or consumables mainly to its members.There is a provision is for the distribution of patronage bonus after the annual accounts are approved — patronage bonus means payment out of surplus income to members in proportion to their respective patronage (not shareholding).