The deck explains the basic process of FPO formation in a brief manner

1. ISH AGRITECH PVT.LTD
FPO Process under NPOP for MOM

2. FPO/FPC Structure
Farmer Producer
Organization/Company
General Body
(All shareholders)
Executive Body
(2 representatives per FIG)
Executive Body
(2 representatives per FIG)
Board of Directors
CEO
FPC Staff
Planning
Implementation
Monitoring

3. Formation of FPO/FPC:
 FIG leaders (President and Secretary) become the executive members of the proposed FPO. The
executive members will meet & elect the Board of Directors and management committee of the
proposed FPO in the democratic process.
 No. of Directors shall be minimum 5 and maximum 15 per FPO (Ideally 10). They will act as first ‘Board
of Directors’ who shall govern the affairs of the Producer Company until the Directors are elected by the
members in a general body meeting, which shall be done within ninety days of incorporation of
Producer Company.
 33% (1/3rd)of the Directors should be women.
 The Directors shall choose the Chairperson.
 Name of the proposed FPC (5 names) shall be selected. Only one name shall be finalized by the
Registrar of the Company (RoC) at the time of registration. The name shall be suffixed with
………………………………….……Farmers Producer Company Limited.

4. Formation of FPO/FPC:
 Management committee for different activities shall be formed like Finance committee,
Procurement committee, Marketing committee, Registration committee, etc. 2-3 Directors shall be
in one committee.
 Regular meeting of the BoDs shall be conducted at short intervals till registration is completed.
Then they may meet at one-month interval.
 Meeting proceedings shall be documented.
 A qualified Chartered Accountant (CA) shall be engaged for FPO registration. All the necessary
documents as mentioned by the CA shall be arranged and to be submitted to the CA for
registration at RoC.
 All the formalities shall be completed as per the advice of the CA during the course of registration.

5. Registration of Producer Organization:
 Legalization of a producer organization to become a producer company by registering under companies
act involves a systematic process as laid down by Ministry of Corporate Affairs, Govt. of India
 The process of registering a Producer Company is similar to that of a Private Limited Company. Digital
Signature (DSC) and Director Identification Number (DIN) must be obtained first for the proposed
Directors of the company. Once, DSC and DIN are obtained, an application for name reservation is to be
filed with the relevant Registrar of Companies (ROC). There is a requirement under the Act that the
name of a producer company must end with the words “Producer Company Limited”. After obtaining
the approval of the name, an application for incorporation is to be filed in the prescribed form for the
incorporation of the Producer Company along with the Memorandum of Association and Article of
Association (MoA & AoA). Once the Registrar is satisfied with the application and the required
documents filed for incorporation of Producer Company, he will approve the same and issue Certificate
of Incorporation
 All the online processes for incorporation and statutory compliances are handled by professional
chartered Accountant. Chartered accountants (CA) are authorized to approve and certify all the
documents that are required in company registration process before uploading it to MCA website

6. Procedure and documentation required to incorporate a Producer Company

7. Digital Signature Certificate (DSC)
As per The Information Technology Act 2000 to ensure security and authenticity, the Digital Signatures on
the documents are submitted electronically. It is necessary for a company to authorize a nominated person
whose signature will be approved to sign the documents. Form for DSC is available with the website of
Ministry of Company Affairs (MCA). Documents required to obtain a DSC are PAN Card, Aadhaar Card,
photo, email id and contact number of the Director.
Digital Director Identification Number (DIN)
As DIN can be obtained online by filing prescribed form of Ministry of Company Affairs along with
Photograph and scanned copy of the supporting documents for proof of identity, proof of residence of the
Directors.
Naming of the Producer Company
A producer company should be named using the suffix “Producer Company Limited” appropriately
indicating its status as a producer company. For naming, a company in order of its preference 5 names
focusing its main objective shall be applied to the Registrar of Companies (ROC).

8. Memorandum of Association and Article of Association (MoA & AoA):
After approval of the name of the producer company by the Registrar of Companies, MoA and AoA have to
be prepared with duly signed and stamped for submission. MoA is the basic document of a company which
indicates the activities the company can undertake. All the activities of the company planned for the
present and for the future are covered in MoA. AoA specifies the rules and regulations governing the
functioning of the company.
Other Required Documents
 Address proof of the building where the FPC office is proposed (electric bill, water bill, house tax);
 Consent letter of the landlord if it’s a hired building - a letter of consent to hire the building/lease
agreement;
 Consent of the Directors;
 An affidavit signed by all the subscribers of the proposed company declaring their legal competency to
act as the subscribers.

9. Certificate of Incorporation
After being satisfied with the application and the required documents filed for incorporation of Producer Company, the
Registrar of Company (ROC) will issue a Certificate of Incorporation of the Producer Company
Post Registration Requirements
Following compliances are made after incorporation of the producer company;
 Establishment of office;
 Opening of Bank Account;
 Appointment of Chief Executive Officer and staff for day to day operation;
 Registration with sales tax, income tax and commercial tax department for PAN, TIN, GST, service tax;
 Obtaining necessary licenses and statutory clearances/permissions for carrying out business;
 Organizing Board meeting and first General Body meeting within 30 days and 90 days of incorporation respectively;
 Issuance of shares.

10. ICS Formation Process, Activities and Our past Work Experience

11. ICS Formation for Group Certification in Project area
 One ICS has been formed in each district under each project
 Training has been provided to each ICS
 For internal inspection adjoining district are allotted to each ICS to remove the
biasness

12. Activities of ICS
 Orientation Program to develop motivation among the farmers
 Formation of internal control System
 Risk Assessment and its management
 Distribution of Organic Farm Diary for data collection
 Training cum review meeting for the field staff

13. Risk Assessment and Risk Management
 Risks that may jeopardize organic quality must be known and taken into account in all
internal procedures. Therefore, the ICS has completed an initial risk assessment. All
necessary measures are taken by the ICS to minimize risks.
 The external inspector has done overall risk assessment at the time of internal
inspection to determine the minimum re-inspection rate and to be aware of critical
control points.

14. Internal Inspection
 Internal inspection by ICS for all registered farmer has to be conducted twice a
year for quality assurance.
 Two internal inspections of 3 ICS under fruits and vegetables and 6 ICS under
medicinal plants completed and third internal inspection is under progress.
 On the basis of the internal inspection report, the final list of farmers who
complied with NSOP have been prepared and submitted to respective CB.
Approval Decision
 There is a approval committee for making final approval decision after thorough checking of internal inspection
report on the basis of this decision AFL has bee prepared and submitted to APEDA accredited certification body
9LACON and SGS0

15. EXTERNAL INSPECTION AND CERTIFICATION
 Three External inspections for annual crops and four for perennial crops by APEDA
accredited certification body (SGS and LACON) will be conducted annually.
 Total 3+5 = 8 ICS under fruits and vegetables project 6 ICS under Medicinal Plants
Project have been formed in 11 districts of MP.
 First External Inspections of 3 ICS under fruits and vegetables 6 ICS under medicinal
plants project have been completed by LACON and SGS respectively and issue of C-
1 ( conversion) certificates for each ICS is under process.

16. SELF HELP GROUPS/ ORGANIC CLUBS
 Total 11+37 = 48 Cluster wise Self Help Groups / Organic Clubs of registered
farmers have been created for marketing of Organic produce to get fair prices

17. Organic Club meeting by
Organic Experts at Bhopal

18. MARKET PROMOTION & MARKETING
Initiatives are being taken to help the farmers to get fair prices of their produce
through market tie –ups with different retail chains like
• Mother Dairy
• Reliance Fresh
• More (Aditya Birla Group)
• ITC
• Spencer's
• Big Apple
• Food Bazar

19. NHM Officials Visit Organic
project Chhindwara

20. Organic In-conversion Orange
in District Betul