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Compliance Norms Related to Farmer Producers Organizations.
Dec 15, 2021
As informed by Ministry of Corporate Affairs, a new Chapter XXIA was incorporated in the Companies Act, 2013 (CA-13) relating to Producer Companies vide the Companies (Amendment) Act, 2020 which got commenced on 11.02.2021. Earlier, the provisions relating to Producer Companies were part of the Companies Act, 1956.
As per Section 378 C(5) of the CA-13, a Producer Company is deemed to be a private company under the CA-13. Relaxations have been provided to private companies under CA-13 which are also applicable to the Producer Companies. In addition to this, other relaxations offered to companies from time to time like extension of AGMs, relaxation on timelines for annual fillings, etc. are also applicable to Producer Companies.
Section 446B of the Companies Act, 2013 amended vide the Companies (Amendment) Act, 2020 provides for lesser penalties for certain class of companies which inter-alia includes Producer Companies.
The Government of India has launched the Central Sector Scheme of 'Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)' to form and promote 10,000 new FPOs which will leverage economies of scale, reduction of cost of production and enhancing farmers’ incomes thus playing a major role towards doubling the income of farmers. Under this scheme, provision is made for professional handholding support for a period of five years to new FPOs formed.
Under the said Central Sector Scheme, Implementing Agencies (IAs) have been allocated a total of 4965 FPO produce clusters so far, out of which a total of 1762 no. of FPOs have been registered from 30 States/ UTs. The State-wise FPOs registered is Annexed.
pib.gov.in
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