Indian economy is a rural economy. Around simple fraction of our population depends on agriculture for his or her bread and butter. But, the farmers and first producers in Bharat have had a protracted struggle, given the competition from world markets, low-profit costs etc. to handle these problems, the govt. got wind of a knowledgeable committee, semiconductor diode by AN economic expert, Y.K. Alight to seem into the matter. In 2002, they introduced the construct of Producer corporations.
Since then, they need helped primary producers gain access to credit, input, market, production technology A producer company is so a hybrid between a Pvt Ld. and a cooperative Society. It combines the goodness of a cooperative enterprise and therefore the timbre and potency of a company.
It accommodates the distinctive components of cooperative business with a regulative Framework just like that of a private ltd Therefore, it will capably be ended that the intention behind insertion of the construct of Producer Company in firms Act,1956 is to confirm a lot of helpful and simple convertible regulative Framework of such firms and it’s to be noted that whether or not it’s a Producer Co-operative registered beneath Co-operative Societies Act, or a Producer Company beneath the businesses Act, they each serve for the common purpose on serve its members and work for his or her betterment.