Indian economy is the agrarian economy. Around 66% of our populace relies upon farming for their business. But, the farmers are essential makers in India have had a long battle, given the challenge from worldwide markets, low-benefit costs and so forth. To address these issues, the Government set up a specialist board of trustees, driven by a business analyst, Y.K. Alagh to investigate the issue. In 2002, they presented the idea of Producer companies. From that point forward, they have helped essential procedure access credit, input, market, creation, and innovation.
The objective of the procedure company to help farmers in producing, harvesting, pooling, handing selling, marketing, and help in exporting and importing for their benefits. Hence, the concept of the producer company to empowering the farmers by creating definite paths for them.
Below we have mentioned the top 5 benefits of producer company:
• Separate legal entity: A procedure organization is a legitimate substance and a juristic individual built up under the Act. Consequently, a producer organization has a wide lawful limit and can claim property and furthermore acquire obligations. The individuals (Directors) of a producer organization have no obligation to the lenders of a producer organization.
• Tax Benefits: In the union budget 2018-2019 it is mentioned that 100% deduction to the companies is applicable if they are registered as a farmer-producer companies with an annual turn over of Rs. 100 crore and earning profit out of the same, will not bother to pay any tax. As farmers are the pillars of our economy to explore their work and show humbleness towards them, the government has extended a 100% deduction to farmer Producer Company.
• Simple Management: The Board of Management of a producer organization can be effectively changed by documenting basic structures with the Registrar of Companies. The Board of Management of a producer organization controls the exercises of the producer company.
• Loans and Investment: The members of the producer companies are initial producers, hence they need finance from time to time. NARBAD bank is inaugurated by the government for the farmers’ producer companies. This bank offers loans to the farmers for a period not extending six months to meets the needs of the procedure companies. In the event, if the members of the procedure company need finance for farming they can effortlessly take from the NARBARD bank for a specific period of time.
• Continuous Existence: A procedure organization has 'unending progression', that is proceeded or continuous presence until it is legitimately broken down. A procedure organization, being a different lawful individual, is unaffected by the demise or other takeoffs of any part however keeps on being in presence independent of the adjustments in enrollment.
• Good Governance: Government, which is completely responsible for keeping the interest of the members of the PO above all the consideration is must for the success of the PO.
• Support for Procedure company: NABARD, SFAC, Government Departments, Corporates and Domestic and International Aid Offices give money related and additionally specialized help to the Producer Organization Promoting Establishment (POPI) for advancement and hand-holding of the PO. Every office has its own criteria for choosing the project/elevating organization to help.
• Help the members: A PO will bolster the individuals in getting more salary by attempted any/many/the majority of the exercises recorded. By amassing the interest for sources of info, the PO can purchase in mass, along these lines getting at less expensive value contrasted with individual buy. Also, by transporting in bulk cost of transportation is decreased. Furthermore, decreasing the general expense of producing. Additionally, the PO may total the produce everything being equal and market in bulk, accordingly, getting better cost per unit of production. The PO can also give showcase data to the producers to empower them to clutch their produce till the market cost become great. Every one of these intercessions will result in more salary to the essential producers.
• Better Facilities: A PO is a great platform for the primary farmers to get better facilities that they unable to get from the other mediums. Members who work in producer companies can easily access government services like PDS, MNREGA, Pension, loan, and Scholarship.
Hence, the main aim of producer companies to give the right wages to the primary farmers and support them in accessing government services. For more information you can contact to Unilex Consultants, here professionals will guide in the right direction regarding Producer company registration.
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