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Farmer Producer Organisation know the difference between FPO and FPC

Know in this Blog Farmer Producer organisation know the difference between FPO and FPC

Farmer Producer Organization

If you are also a farmer and want to start a Farmer Producer Company or Farmer Producer Organization, but do not understand where to start? Then this video can prove to be useful for you, in which complete information about starting FPO and FPC has been given.Farmers have many questions in their minds about FPO i.e. Farmer Producer Company, such as how to start an FPO? What is the difference between FPO and FPC?

Daya Shankar Singh, President of Uttar Pradesh FPO Association, is answering many such questions. It was started in 2007 by renowned economist YK Alag and then he formed the first FPC in 2011. There are two types of organizations like FPO i.e. Farmer Producer Organization, the first is FPC i.e. Farmer Producer Company and the second is FPO which is registered under cooperative, it is called Farmer Producer Organization. 

What is the difference between FPO and FPC?

The Farmer Producer Company which is registered under the Company Act is called FPC. Whereas the one which is registered under the Cooperative Act is also called Farmer Producer Company. But the difference between the two is that when you form an FPC, you can work in the whole country, because when we talk about a private limited company or company, it is mainly of three types.

First is Private Limited, which is formed by one or two people together, in which most of the companies are registered. FPO means Farmer Producer Organization, a group of farmers who run all the business activities related to farming from crop production in their area. Through FPO, farmers not only get the freedom to buy agricultural equipment along with many products like manure, seeds, fertilizers in bulk, but they can also sell the finished crop, process it and sell the product in the market. Farmer Producer Organization is formed by one or two people together, whereas to form a Farmer Producer Company, there should be 10 people, in which five are directors. 

And yes, they should be farmers. Now a question arises in the mind of the people: what is the definition of a farmer here. For this, the farmer should have a Khatauni in his name. If we talk about UP, here as long as the father is alive, the property will come in the name of the son. Now in such a situation, a certificate is made to certify that so and so son is a resident of such and such place, his livelihood is based on farming. This certificate is issued through the District Agriculture Officer or Tehsildar or SDM. It is called a producer certificate. The most important thing is that if you have formed a producer company, then you will have to produce, not that you just get the company registered and the work is over.

For company registration, first Khatauni, second his Aadhar card, third PAN card and fourth a passport size photo is required. When we go to a CA, his language is difficult and farmers are unable to understand, because earlier when FPO was registered, the fee was Rs 49500, now farmer producer company registration is done for Rs 15000. And the maximum expense is Rs 25000. Whether you want to work in dairy or poultry, you have to decide the priority of which sector you want to work in. This involves agriculture related work, there are 17 departments under agriculture, the government's intention is that you do agriculture related work, whether it is goat rearing, poultry farming.

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Updated on: 03 Apr, 2024 | 7 min read

Myself Sunanda Chauhan hailing from Meerut Uttar Pradesh. I have completed my LLB in 2023 from CCS University Meerut. Currently I'm pursuing LLM. Im registered Advocate in Allahabad Bar Council.