“A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorized capital of ₹ 5 lakh. The term “Producer Company” indicates that only certain categories of persons who are known as “primary producer”, can become shareholders in the Producer Company. Primary Producer means those persons who are engaged in primary agriculture activities such as:
Animal Husbandry: breeding or caring of animals in the farm.
Horticulture: Producing, growing plants, fruits or vegetables.
Floriculture: Growing Flowers.
Pisciculture: Fish farming.
Viticulture: Producing grapes.
Forestry: Preserving forest.
Re-vegetation: Rebuilding or replanting disturbed land.
Bee raising: keep bees to collect honey.