A FPC(Farmer Producer Company) helps farmers grow their income by acquiring access to better markets, capital, and technology.
It combines the professionalism and limited responsibility of a private firm with the advantages of a cooperative organization.
By cutting out middlemen and providing value to their produce, FPCs increase farmers’ market power, encourage sustainable farming, and improve financial inclusion.
In this blog, we will discuss farmer producer company online registration in India with fees, documentation, process and requirements.
What is FPC And How to Start a Farmer Producer Company
An organization known as a Farmer Producer Company (FPC) was established by farmers to increase their revenue through group farming and commercial endeavors. It helps small farmers’ access to financing, inputs, technologies, and markets.
To establish a Farmer Producer company, 10 or more farmers must combine together and register as a producer company under the Companies Act of 2013. This involves registering with the MCA, obtaining a DIN, and obtaining a Digital Signature Certificate.
Benefits of Farmer Producer Company in India
These are some of the important benefits of FPC registration for farmers in Assam those are as follows:
1. Better Market Access
FPC assists small farmers in linking with larger buyers, who may be selling to supermarkets or exporters. By helping farmers to sell together, middlemen can be avoided, ensuring fair prices for all, as well as larger and more lucrative markets.
2. Low Input Costs
For each input obtained by an FPC, seeds, fertilizers, pesticides, or machinery, farmers get to pay wholesale prices due to bulk purchases; this, in Walpole’s opinion, is a clear case wherein enhanced bargaining positions allow farmers to keep reduced costs of production and higher profit margins for each member.
3. Increased Bargaining Power
A single farmer has little say in the market, but within an FPC, farmers hold relatively higher bargaining strength toward inputs and outputs. Traders would have no option but to listen to these farmers’ combined voices as it gives strength to their position and curtails traders’ exploitation.
4. Value Addition & Processing
In order to produce and sell value-added items like packaged pulses, oils, or spices rather than raw produce, FPCs may invest in small-scale processing facilities like mills, packaging centers, or cold storage facilities. This would increase the farmers’ profits.
5. Access to Government Schemes and Subsidies
The Indian government has various schemes, grants, and subsidy programs meant specifically for registered FPCs. The benefits under these programs include financial assistance, training, and infrastructure support for farmers, rendering the way smoother for collective farming.
6. Improved Financial Support
Banks and financial institutions are more willing to lend to FPCs since they are recognized as legal entities. This enables farmers to gain access to credit, working capital, and insurance far better than they could do individually.
7. Skill Development and Knowledge Sharing
FPCs frequently host workshops, exposure visits, and training programs to assist in the areas of sustainable practices, modern farming methods, and company management. As a result, the members can develop new routines and boost their output.
Farmer Producer Organization vs Farmer Producer Company: Difference
Farmer Producer Organization (FPO):
FPOs are collective organizations of farmers aimed at enhancing income, market access, and bargaining power. In broad terms, FPOs can be cooperatives, societies, trusts, or companies.
The common aim of an FPO is to facilitate working collectively by farmers who purchase agricultural inputs such as seeds and fertilizers in bulk and market their produce collectively for better prices.
These FPOs are promoted by the government, NGOs, or developmental agencies in order to empower small and marginal farmers through collective efforts.
Farmer Producer Company (FPC):
Contrary to this, a Farmer Producer Company (FPC) becomes a particular class of FPOs registered legally under the Companies Act, 2013. An FPC is a hybrid form, having characteristics of both cooperative society and that of the private company in which farmers are the owners and the beneficiaries of the companies.
An FPC can make business transactions, enter into contracts, raise funds, and operate as a company while primarily in the interest of its member farmers. Any profit made by an FPC may be distributed among the members and/or reinvested back for betterment in farming.
Note: Simply put, all FPCs are FPOs but all FPOs are not FPCs — the FPC is just a more formalized, legal version of an FPO.
FPC Registration Process Online In Guwahati Assam
FPC company registration in Assam can be done easily through the online MCA portal. The online registration of FPC through MCA requires submitting all the necessary Farmer Producer Company registration documents.
The FPC registration fees in Assam may vary depending on the company’s authorized capital and professional charges. This process helps farmers form a legal entity to collectively manage and grow their business.
Final Words
A Farmer Producers’ Company Registration will also empower farmers by bringing them altogether to improve production, processing, and marketing activities. It helps them gain proper access to finance, technology, and government extension services and to afford fair return for their’ produce. All in all, an FPC would produce collective growth, bolster rural economies, and promote sustainability in agricultural development.
FAQs:
What is a farmer producer company and who can apply?
A FPC company is a type of company created by farmers to upscale their income through collective farming. And only farmers and producers can apply for it.
How many members are required to start a FPC?
To state a farmer producer company a minimum of 10 members are required initially.
Who is the best FPC registration consultant in north India?
Regible Corporate Consultant is the best FPC registration consultant in Guwahati, Assam, and North India region.
How much does it cost for farmer producer company registration?
Registration fees for Farmer Producer Companies can change based on the authorized capital and professional fees of the business.
Can a non-farmer become a member of a farmer producer company?
A farmer producer business can only have farmers and producers as members.
What annual filling is required after FPC registration?
A farmer producer company must file annual returns, income tax return, and financial statements each year.
