Necessary Information About Farmer Producer Company Required Information

In India, where 64.61% of the population lives in rural areas, the majority of people are farmers. In an observation, it is found that among these farmers, 82.6% are small marginal farmers who have lands ranging from 0–2 hectors, 13.2% are medium-sized landholder farmers, and the rest are large landholder farmers. Now, those marginal farmers always face difficulty purchasing seeds, pesticides, vehicles, and other technical stuff. Farmers with semi-medium or large lands, on the other hand, may not face this type of problem because they have sufficient funds. Also, the farmers have to be dependent on a third party for selling their products. Often, it is seen that third parties take the products from the farmers at a very cheap rate and sell them to the market at a much higher rate. Farmers do not receive their justifiable money in the interim.

As the number of farmers committing suicide as a result of this injustice rises, the Indian government in 2011 introduced a new system known as the Farmer Producer Organization (FPO), in which a small group of farmers can buy the necessary items and sell their products together. This system is implemented so that farmers can easily market their products, sell them directly to different markets, and profit. This system requires at least ten farmers, five of whom must be directors. It is also not required that the farmers live or own land in the same geographical area. Despite the fact that this concept is being introduced in 2011, the company will be registered under the Act of 1956.Like any other company, a few documents are needed to open a farmer-producer company, like the farmer's PAN card, AADHAR card, voter card, bank statement, and proof of having agricultural land. To encourage these types of businesses, the government has announced that if a farmer-producer company exceeds a turnover threshold of 100 crores, it will receive a 100% tax break.

Benefits of a Farmer-Producer Company :

• Production costs are reduced.

• Farmers can get bulk orders.

• Bulk transportation can reduce operational costs.

• Farmers can directly communicate with big grocery companies and also bargain with them.

Currently, approximately 5000 farmer-producer organisations operate throughout India. Nearly 32000 FPOs are registered and operating as Farmer Producer Companies. SFSC, which functions under NABARD, promotes, empowers, and gives training to this farmer-producer organization. In addition, if a farmer-producer company takes out a bank loan, SFSC will act as a guarantor for up to a crore rupee in loans. It also provides equity up to 15 lakhs in two EMIs over three years. But the key problem is that the majority of farmer-owned companies don't have the proper technical skills to maintain the entire process. In order to function as a successful FPO, a farmer must think from a businessman's perspective and should focus on the marketing, packaging, and branding of their products. So, in order to achieve this goal, they require good producer company software that will assist them in maintaining all of these systems. This software could make their operations easier, as they could manage their stocks and also get detailed reports about them. For the best farmer-producer company software, you can also check this link : https://www.webstartechnology.in/producer-company-software.html