How to Start Farmer Producer Company

Over the past few years, there has been notable momentum in the agricultural sector towards embracing the idea of Farmer Producer Companies (FPCs).FPCs empower farmers by providing them with a collective platform to enhance their bargaining power, access better resources, and improve their overall socio-economic conditions. If you’re considering starting a Farmer Producer Company, this step-by-step guide will navigate you through the process and shed light on the essential aspects to consider.

Understanding Farmer Producer Companies (FPCs):

A Farmer Producer Company is a legal entity formed by a group of farmers with the objective of increasing their income, productivity, and overall well-being. FPCs allow farmers to pool their resources, share knowledge, and collectively engage in various activities such as production, procurement, processing, marketing, and distribution of agricultural products.

Step 1: Formation of Core Group:

Before officially establishing an FPC, assemble a core group of like-minded farmers who share the same vision. This group will play a pivotal role in conceptualizing the FPC’s goals and objectives.

Step 2: Identifying Activities:

Define the primary activities the FPC will engage in. This could range from cultivation and production to value addition, processing, and marketing. Identifying these activities will help shape the FPC’s structure and functioning.

Step 3: Registration:

Register the FPC as a legal entity under the Companies Act, 2013. The process involves drafting a Memorandum of Association (MOA) and Articles of Association (AOA), along with other required documents. Seek legal advice to ensure accurate and compliant registration.

Step 4: Capitalization:

Determine the capital required for the FPC’s operations. This can be raised through the issuance of shares to the farmer members. Each member’s shareholding should be proportional to their contribution and involvement.

Step 5: Membership Drive:

Invite other farmers to become members of the FPC. Membership should be voluntary and open to all eligible farmers who wish to participate and benefit from the collective activities.

Step 6: Board of Directors:

Elect a Board of Directors from among the farmer members. The board will play a crucial role in decision-making, policy formulation, and overseeing the FPC’s operations.

Step 7: Business Plan:

Develop a comprehensive business plan outlining the FPC’s activities, goals, strategies, and financial projections. This plan will serve as a roadmap for the FPC’s growth and sustainability.

Step 8: Infrastructure and Resources:

Set up the necessary infrastructure and resources required for the FPC’s chosen activities. This could include storage facilities, processing units, transportation, etc.

Step 9: Financial Assistance:

Explore government schemes, grants, and subsidies available for FPCs. Financial assistance can significantly support the FPC’s establishment and expansion.

Step 10: Marketing and Distribution:

Create a robust marketing and distribution strategy for the FPC’s products. Establish linkages with markets, retailers, and consumers to ensure a steady flow of income.

Step 11: Capacity Building:

Invest in continuous training and capacity-building programs for the FPC members. Empower them with the knowledge and skills necessary to manage the company effectively.

Step 12: Scaling Up:

As the FPC gains traction and achieves its goals, consider diversifying its activities or expanding its reach to benefit more farmers.


Starting a Farmer Producer Company is a commendable endeavor that holds the potential to transform the lives of farmers and revitalize rural economies. By following this step-by-step guide, you can navigate the process of establishing an FPC with clarity and confidence. Remember that the success of an FPC relies on collaboration, commitment, and the collective efforts of its farmer members.


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