The state of Uttar Pradesh boasts the highest number of Farmers producer companies, followed closely by states of Karnataka, Maharashtra and Madhya Pradesh. This was revealed by the Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar in a written reply in Lok Sabha.
UP leads the pack by 188 FPOs. While Karnataka is second with about 145, both Maharashtra and Madhya Pradesh have about 136 FPOs each. Other states, having more than 100 number of FPOs are Odisha, Tamil Nadu and Rajasthan.
Meanwhile, the government has included FPOs under a section of companies act where more leniency in compliance is granted to the companies. This is aimed at encouraging them, said a government source.
As informed by the 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 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 filings, 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.
It bears recall that 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.
Several co-op bodies including NAFED and NCDC are handholding many of such FPOs.
State-wise FPOs registered under the new Central Sector Scheme of Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs).
