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1.	History & Background of Producer Organisations The Indian Government has tried to link smallholders to the input and output markets over the years. Several attempts have also been made to bring together farmers through different groups such as agricultural cooperatives, self-help groups, commodity interest groups and others. But success has been limited.

This has had a big impact on farmers and agricultural producers. And a need has been felt to aggregate farmers in order to benefit from economies of scale. 2.	What is the need of FPCs?

Problem: A small farmer will have to go through a long chain of middle men, with non-transparent and non-standardised ways of working in order to market or sell his produce. Issues faced by Small & Marginal farmers: 1.	Shrinking land asset, rising per unit cost of cultivation and shrinking profit margins 2.	Difficulties in accessing critical inputs like credit, water, power as well as quality seeds, fertilizers, pesticides and appropriate and timely technical assistance 3.	Fragmented value chain in agriculture marketing, monopoly and /or monopsony conditions, few opportunities for value addition at the bottom of the chain 4.	Weak bargaining with market agents and low returns on investment Solution: Instead, by coming together as an organisation, a group of farmers can avail the benefit of economies at scale along with better bargaining power for all needs including buying and selling.

3.	Overview of FPC and FPCs Producer Organisations in India can take various forms, such as cooperatives, companies, or societies. They can operate in different sectors, such as agriculture, horticulture, animal husbandry, and fisheries. The main aim of a Farmer Producer Companies (FPC) is to improve the economic and social well-being of its members through collective action in the form of an organisation of their own. Definition: FPCs can be defined as a group of farmers who come together collectively as a registered organisation under the Indian Companies Act and manage various aspects of their farming operations, such as production and harvesting, post-harvesting, processing, and marketing and selling. The concept of producer companies was introduced in 2002 by incorporating a new Part IXA (Section 581A to 581ZT) into the Companies Act, 1956, based on the recommendations of an expert committee led by the economist, Mr. Y. K. Alagh FPC registration and action items phase took strength from 2010. A producer company carries out the following activities as mentioned in section 581B of Companies Act 1956:s ●	Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import goods for their benefit. ●	Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members. ●	Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members. ●	Providing education on the mutual assistance principles to its Members and others. ●	Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of interest of its members. ●	Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce. ●	Insurance of producers or their primary produce.