Farmers Producer Companies (FPCs) are a legal form of company created by an Act of Parliament in 2002. FPCs allow farmer producers to incorporate as companies while retaining cooperative principles like one member one vote. Key provisions include that only farmers can be members, shares cannot be publicly traded, and profits must be shared among members. The document provides background on FPCs and compares them to producer cooperatives, outlining differences in registration, membership, management, and other areas. It also gives examples of existing FPCs in India.
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
FPO Business Accelerator Centre- Indore
Course content for Agripreneurs Program in Agri-Business Management
The course is primarily targeted to any graduates who have basic knowledge of agriculture, though this may not be a pre-requisite. The course aims at equipping them with theoretical and practical knowledge on different aspects of agri-business including policy framework, laws, rules and regulations, business potential for an array of agri-businesses, banking interface, and a range of agri-business operations. All students would also acquire basic knowledge of important aspects of corporate and other laws, basic accounting, good communication skills, and elementary aspects of HR management as compulsory subjects. Practical training with EFASAL team at HQ and field level for all modules in every week, in which two days classes and three days practical training
Farmer Producer Organization FPO of India Presentation for international conf...Dr Dilip Vishnu Deshpande
Farmer Producer Organization emergence as a parallel movement to cooperatives in India. It has a case study of a successful FPO from Maharashtra, India. The presentation was made in International Conference in Kyrgyztan in May 2021.
The Presentation comprises all about the FPO. It covers structure, incorporation of FPO, formalities, legal compliance, working pattern, B-plan & others.
Any feedback would always be appreciated.
FPO Business Accelerator Centre- Indore
Course content for Agripreneurs Program in Agri-Business Management
The course is primarily targeted to any graduates who have basic knowledge of agriculture, though this may not be a pre-requisite. The course aims at equipping them with theoretical and practical knowledge on different aspects of agri-business including policy framework, laws, rules and regulations, business potential for an array of agri-businesses, banking interface, and a range of agri-business operations. All students would also acquire basic knowledge of important aspects of corporate and other laws, basic accounting, good communication skills, and elementary aspects of HR management as compulsory subjects. Practical training with EFASAL team at HQ and field level for all modules in every week, in which two days classes and three days practical training
Farmer Producer Organization FPO of India Presentation for international conf...Dr Dilip Vishnu Deshpande
Farmer Producer Organization emergence as a parallel movement to cooperatives in India. It has a case study of a successful FPO from Maharashtra, India. The presentation was made in International Conference in Kyrgyztan in May 2021.
A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
Cooperative societies are voluntary associations started with the aim of service to members.
Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
According to RBI “Co-operative marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”
According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”
The individual volume of production of the small farmers is low which averts them from reaping benefit of economics of scale. Small farmers can benefit from the economics of scale only through aggregation. Producer organizations are useful for mobilizing individual farmers’ effort into collective action which will be helpful in improving the socio-economic condition of all the members of the group. Organizing farmers will aid in access to resources, information, specialization in commodities, processing and value addition, large-scale operations, market orientation and better bargaining power.
This training material is prepared to understand the basics of Producer Group, its similarities and differences with Self Help Group, examples, types of PG, etc.
India is an agrarian economy where 58% of the population depends on agriculture for its livelihood and it provides employment for 42 % of Indian Population. Instead of playing such a pivot role in the economy of India, Agriculture sector has not experienced that much growth as compared to other sector.
Considering the various obstacle that agriculture sector faces like limited capital and asset base, climate dependency, electricity water supply, transportation etc. lawmakers had resorted to provide a corporate structure to agricultural activities in India. Thus concept of producer company was introduced which basically takes all the features of a cooperative society and merged with the framework of a body corporate.
Under Producer Company, group of farmers comes together to act as member to carry agricultural business on self-help basis with an intention to earn profit and provide help to each member of its company through democratic management. Some of examples of producer companies in India are:
Dhari Krushak Vikash Producer Company Limited, Gujarat
Rangsutra in Kerala
Sahyadri Farmer Producer Company, Nasik
Nachalur Farmer Producer Company, Tamil Nadu etc
A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
Cooperative societies are voluntary associations started with the aim of service to members.
Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
According to RBI “Co-operative marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”
According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”
The individual volume of production of the small farmers is low which averts them from reaping benefit of economics of scale. Small farmers can benefit from the economics of scale only through aggregation. Producer organizations are useful for mobilizing individual farmers’ effort into collective action which will be helpful in improving the socio-economic condition of all the members of the group. Organizing farmers will aid in access to resources, information, specialization in commodities, processing and value addition, large-scale operations, market orientation and better bargaining power.
This training material is prepared to understand the basics of Producer Group, its similarities and differences with Self Help Group, examples, types of PG, etc.
India is an agrarian economy where 58% of the population depends on agriculture for its livelihood and it provides employment for 42 % of Indian Population. Instead of playing such a pivot role in the economy of India, Agriculture sector has not experienced that much growth as compared to other sector.
Considering the various obstacle that agriculture sector faces like limited capital and asset base, climate dependency, electricity water supply, transportation etc. lawmakers had resorted to provide a corporate structure to agricultural activities in India. Thus concept of producer company was introduced which basically takes all the features of a cooperative society and merged with the framework of a body corporate.
Under Producer Company, group of farmers comes together to act as member to carry agricultural business on self-help basis with an intention to earn profit and provide help to each member of its company through democratic management. Some of examples of producer companies in India are:
Dhari Krushak Vikash Producer Company Limited, Gujarat
Rangsutra in Kerala
Sahyadri Farmer Producer Company, Nasik
Nachalur Farmer Producer Company, Tamil Nadu etc
Under Companies ACT 2013, the formation of Producers' Company has bee provisioned. It is also knows as Farmers Producers Organisations for agri related producers.
All about a co-operative society in India, its legal status and provisions of taxation, Government National Co-operative policy in India, and Exemptions granted under the Income Tax Act, 1961.
PROVISIONS RELATING TO CO-OPERATIVE SOCIETIES IN MAHARASHTRARutuja Chudnaik
PROVISIONS RELATING TO CO-OPERATIVE SOCIETIES IN MAHARASHTRA, The Maharashtra Co-operative Societies Act, 1960 (MCS Act) and The Maharashtra Co-operative Societies Rules, 1961 are applicable to any co-operative society registered in Maharashtra and having no branches outside Maharashtra. If any state does not have its own State Act, the Co-operative Societies Act, 1912 and Rules become applicable. However, if a society has operations beyond one State, it is governed by a Central Act viz. the Multi-State Co-operative Societies Act, 2002 (MSCS) and its Rules.
The income earned by a co-operative society is subject to income tax under the Income-tax Act, 1961 and its Rules. It may be noted the income of a co-operative society is eligible for deduction u/s 80P of the Income-tax Act and not an exemption u/s 10. Hence, it is mandatory for all co-operative societies to file income tax return.
Co-operative societies are also governed by circulars, notifications and directives issued from time to time by the various departments of co-operation. A society is also bound by its bye-laws. It has also to follow various accounting and assurance standards issued by the Institute of Chartered Accountants of India.
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In the attached handbook, we have included major legal compliance applicable on NGOs in India under Income Tax Act, Foreign Contribution Regulation Act, Payment of Gratuity Act, Provident Fund & Misc Provisions Act. #ngos #Taxation #Compliances #SNR #krestonsnr
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
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June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
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The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
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2. Citation Part IXA (section 581A
to 581ZT) into the
Companies Act,1956
Enacted by Parliament of India
Year signed 2002
Amendments
2013 – act
2014 - regulations
Farmers Producer Company
3. BACKGROUND
*Primary produce has been defined as a produce of farmers arising from
agriculture including animal husbandry, horticulture, floriculture,
pisciculture, viticulture, forestry, forest products, re-vegetation, bee
raising and farming plantation products: produce of persons engaged in
hand-loom, handicraft and other cottage industries: by - products of such
products; and products arising out of ancillary industries.
The concept of Producer Companies was introduced in 2002 by
incorporating a new Part IXA (section 581A to 581ZT) into the Companies
Act,1956(“the Act”) based on the recommendations of an expert
committee led by an economist, Y. K. Alagh.
Aim of the Committee was to –
· frame a legislation that would enable incorporation of cooperatives as
companies and conversion of existing cooperatives into companies;
· ensuring the unique elements of cooperative business with a regulatory
framework similar to that of companies
4. Meaning of Producer Company :
A producer company is basically a body corporate registered as
Producer Company under Companies Act, 1956 and shall carry on or
relate to any of following activities classified broadly:-
(a) production, harvesting, processing, procurement, grading, handling,
marketing, selling, export of primary produce of the Members or import
of goods or services for their benefit.
(b) rendering technical services, consultancy services, training,
education, research and development and all other activities for the
promotion of the interests of its Members;
(c) generation, transmission and distribution of power, revitalization of
land and water resources, their use, conservation and communications
relatable to primary produce;
(d) promoting mutual assistance, welfare measures, financial services,
insurance of producers or their primary produce;
5.
6. What is a FPC?
Farmers Producer Company (FPC) is a legal form of the
company. In 2002 an Act was passed in Parliament and this
legal form was created. It takes care of the flaws in the
cooperative societies but keeps its strengths. It has also
borrowed the strengths of the corporate companies.
According to this new law, only farmer – producers can be
members of the FPC and the farmer members themselves
will manage this company. Paid staff can be employed to
help the farmer- producers run the FPC. These FPCs will be
promoted by the farmers, will be run by the farmers and for
the benefits of the farmers. Over the years, the surplus
would be shared among the farmers only.
7. Salient Provisions of Companies Act relating to
Producer Companies
Incorporation:
Any of the following combination of producers can incorporate a producer company:
· ten or more producers (individuals); or
· two or more producer institutions; or
· combination of the above two (10+2).
Registration:
(a) In a Producer Company, only persons engaged in an activity connected with, or
related to, primary produce can participate in the ownership. The members have
necessarily to be primary producers.
(b) These companies shall be termed as “Companies with Limited Liability” and the
liability of the members will be limited to the amount, if any, unpaid on the shares.
(c) The name of the company shall end with the words "Producer Company
Limited"
8. (d) On registration, the producer company shall become as if it is a private
limited company for the purpose of application of law and administration of the
company(however it shall comply with the specific provisions of part IXA).
(e) The maximum number of 50 members is not applicable to these
companies.
Share Capital and Voting Rights:
(i) The share capital of a Producer Company shall consist of equity shares only.
(ii) Members' equity cannot be publicly traded but only transferred.
(iii) Voting when membership is
· only of individuals then voting rights shall be based on a single vote for every
member.
· only of producer institutions then voting rights on the basis of their
participation.
· combination of both individuals and producer institutions then voting rights shall
be based on a single vote for every member.
9. Management:
· Every producer company is to have at least five and not more than 15 directors.
· A full time chief executive should be appointed by the board and shall be
entrusted with substantial powers of management as the board may determine.
Reserves:
· Every producer company has to maintain a general reserve in every financial
year and in case there are not sufficient funds in any year for such transfer, the
shortfall has to be made up by members' contribution in proportion to their
*patronage in the business.
*Patronage, in turn, is defined as the use of services offered by producer companies
to their members by participation in their business activities.
Dispute Resolution:
Dispute relating to producers companies are to be settled by conciliation or
arbitration under the Arbitration and Conciliation Act, 1996 as if the parties to
the dispute have consented in writing to such procedure.
10. Members' Benefit:
· Members will initially receive only such value for the produce or products
pooled and supplied as the directors may determine. The withheld amount may
be disbursed later either in cash or in kind or by allotment of equity shares.
· Members will be eligible to receive bonus shares.
· There is a provision is for the distribution of patronage bonus (akin to
dividend) after the annual accounts are approved — patronage bonus means
payment out of surplus income to members in proportion to their respective
patronage (not shareholding).
11. Indian economy is basically an agrarian economy. More than two-thirds of the
Indian population depends upon agriculture for their livelihood.
The Indian Income Tax Act, 1961(“the IT Act”) specifically exempts tax on
agricultural income under section 10(1). However, the exemption for such
agricultural income shall sometimes vary depending upon the kind of agricultural
activity carried on.
It is to be noted that though the IT Act does not per-se give any special benefits or
exemptions to Producer Companies as such, but depending upon the kind of
agricultural activity it carries on, certain tax benefits can be availed.
For instance, if green tea leaves are grown and sold directly without any further
processing, the income derived from such an activity is considered as agricultural
income under the IT Act and such income is 100 % tax free, but if the green tea
leaves are further processed and tea is manufactured only 60% of the income
derived from such an activity is considered as agricultural income and the tax
exemption can be availed only on the said 60% of such income.Thus, it is clear that
the tax exemption to a producer company depends upon the activity it carries on.
TAX BENEFITS
12. PROCEDURE
For registration as a Producer Company an application is required to be submitted
along with the prescribed document to the registrar for registration as Producer
Company.
• Following enclosures and documents are required to be submitted with along
the application:
• A copy of the special resolution passed with 2/3 majority of the member.
• A statement showing the of names, addresses and occupation of the Directors and
the Chief Executive.
• A list of the members.
• A statement indicating that the Inter-State Cooperative Society is any one or more
of the objects specified in section 581B.
•A declaration by two or more Directors certifying that the particulars given as per
para (1) to (4) above are correct.
The Registrar on being satisfied that all the required document relating to
registration have been duly complied with shall within 30 days of receipt of the
application Issue a Certificate of Incorporation. And the word ‘Producer
Company Limited ‘shall form part of its name to explain its identity.
13. PROVISIONS
• The Inter-State Cooperative Society shall, upon registration stand transformed
into a producer company, and shall be governed by the provision of Part IX A of
the Companies Act, 1956.
• All its properties, assets, liabilities, debts etc. shall vest in Producer Company
with effect from the Registration date.
• All legal proceeding may be continued against the Producer Company.
RECONVERSION OF PRODUCER COMPANY INTO
INTER-STATE COOPERATIVE SOCIETY
A Producer Company may be reconverted into Inter-State Co-operative
Society after obtaining approval of its members in general meeting by Two-third
majority or on request by its creditors representing three-fourth of its value of
creditors, may make an application to High Court for its reconversion into ‘Inter-
State Co-operative Society’.
14. Differences between a Producer Cooperative
and Producer Company:
Features Producer Cooperative Producer Company
Registration Cooperative Societies Act Companies Act
Membership Open only to individuals
and
cooperatives
Only those who participate in the
activity
Relationship with
other
corporates/ business
houses /NGOs
It can have contractual or
transaction based
relations.
Producers and corporate entity can
together float a producer company
and thus can become members of
the Company
Voting Rights One person, one vote, but
government and RCS
holds veto
powers
One person one vote. Those not
having transactions with company
can’t vote
Role of Registering
authority
Significant Minimal
15. Shares Not tradable Not tradable but transferable
Reserves Created if there are profits Mandatory to create every year
Dispute Settlement Through Cooperative
mechanism
By Arbitration
PRODUCER COMPANIES IN INDIA
India has witnessed fewer than one hundred registered producer
companies as yet. Majority of the Companies are floated in
Maharashtra and Madhya Pradesh as an initiative by the Government
basically for the betterment of unprivileged farmers. For example,
Government of Madhya Pradesh under District Poverty Initiatives
Programme (DPIP) has promoted a few Producer Companies in various
parts of the State to eradicate poverty.
16. The following is a list of few companies incorporated as Producer
Companies in India:
•The Indian Organic Farmer Producer Company Limited is an Aluva
(Kerala) company of farmers producing organic products.
•Vanilla India Producer Company Ltd (VANILCO) has been promoted by
Kerala based Indian Farmers Movement (Infarm), a charitable society
with over one lakh farmer members for catering to the long-term interests
of the vanilla farmers.
•Coinonya Farm Producer Company Limited for turmeric and Karbi
Farms Producer
•Company Limited for ginger and chilly in Assam. Karnavati Producer
Company Limited in Madhya Pradesh.
17. DISCRETION OF HIGH COURT
The High Court, may after having been satisfied, sanction the reconversion
which shall be Binding on all members and all creditors and also on the
company.
A certified copy of the order shall be filed with the registrar.
The Producer Company which has been sanctioned reconversion, shall now
make application for registration as Inter-State Co-operative Society under
the Multi-State Co-operatives Act, 2002.
18. Case Study
Amul plant at Anand, Gujarat
It was in the year 2006 in the month of May where in a major initiative by AMUL,
which is a cooperative society was to change the organizational model by
transforming the co-operative society into a producer company. The proposed
transformation was basically to have an exit from the very restrictions of co-
operatives.
The below quoted are the then views of the Chairman of AMUL :
"The State Government's permission is required for everything now, from opening
of offices in other States to investment of surplus funds, issue of bonus shares,
election of Chairman and appointment of statutory auditors. It gives lot of scope
for official interference.The Companies Act, which is a Central legislation, is
comparatively more liberal, especially since the passing of an amendment in 2002
enabling creation of `producer companies'. These are akin to private limited
companies, though in this case, there are no limits to the number of members.
Moreover, voting rights are based on the cooperative principle of one man-one vote
and not the extent of shareholding as in normal private or public limited
companies.
19. "A producer company will have more flexibility in so far as investment in
other companies and formation of subsidiaries is concerned.”
"Also, since shares can be attached, it would be possible to raise more
borrowings from commercial banks and other institutions for expansion
of business,” the official added.
However, as yet AMUL is a co-operative society as the proposal above was
not implemented.
20. Conclusion:
A producer company is thus a hybrid between a private limited company and a
cooperative society. It combines the goodness of a cooperative enterprise and the
vibrancy and efficiency of a company. It accommodates the unique elements of
cooperative business with a regulatory framework similar to that of a private limited
company. Therefore, it can aptly be concluded that the intention behind insertion of
the concept of Producer Company in Companies Act,1956 is to ensure a more
beneficial and easy adaptable regulatory framework of such companies and it is to
be well noted that whether it is a Producer Co-operative registered under Co-
operative Societies Act, or a Producer Company under the Companies Act, they both
serve for the common purpose as to serve its members and work for their
betterment.
“PROMOTE INDIAN CULTURE ; PROMOTE PRODUCER COMPANIES”