Farmer Producer Company (FPC) or Farmer Producer Organisation (FPO) has been designed, considering the needs of farmers, agriculturists, fishermen, weavers, milk producers, and individuals involved in farming activities, collectively referred to as ‘Producers’.
The main intention of the Farmer Producer Company is to ensure better income for the producers through an organization of their own as the small producers do not have the volume of inputs to get the benefit of agricultural produce on a large scale. Additionally, in agricultural marketing, there is a long chain of intermediaries, through which the producers receive only a small part of the value that the ultimate consumer pays.
On the other hand, in the Farmer Producer Company, the producers have better bargaining power, bulk buyers of the produce, and bulk suppliers of inputs. Therefore, a Producer Company deals primarily with agriculture and post-harvest processing activities on a larger scale.
Further, a Farmer Producer Company is a company registered under the Companies Act, 2013, with the aim of producing, harvesting, procuring, grading, pooling, handling, marketing, selling, and exporting the Members’ primary produce, or importing goods or services for their benefit. In this context, “produce” denotes items resulting from farming and allied activities.
A person being a “producer” or any “producer institution” can be admitted as a member of the Producer Company.