Producer Company is a company registered under the Companies Act, 1956, which has the objective of (a) production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit : (b) rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members; (c) generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce; (d) promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.

Primary produce has been defined as a produce of farmers arising from agriculture including animal husbandry, horticulture, floriculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products: produce of persons engaged in hand-loom, handicraft and other cottage industries: by - products of such products; and products arising out of ancillary industries These are products that are grown by farming. A Producer Company mainly deals with agriculture and post cultivation processing activities. The organization of farmers into producer companies improves the livelihood of farmers.