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PRODUCER COMPANY (PC)

PRODUCER COMPANY (PC). A COMMUNITY BASED RURAL ENTERPRISE Subhash Mehta New Delhi Jan 31, 09. Business Enterprise.

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PRODUCER COMPANY (PC)

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  1. PRODUCER COMPANY (PC) A COMMUNITY BASED RURAL ENTERPRISE Subhash Mehta New Delhi Jan 31, 09

  2. Business Enterprise Producer Company is a means to bring together the small and marginal farmers and other small producers in the local communities to build their own business enterprise that will be managed by professionals

  3. The situation 80 per cent of the producers in rural areas of Asia have land holding of less than two hectares and are responsible for: • Finance and purchase • Producing and quality • Primary value addition • Marketing - Logistics • Cash to cash cycle

  4. The reality Small holder farmers have limited resources and exposure, often coupled with illiteracy Their core competence is on-farm activities Financing, procuring inputs, ensuring quality and traceability, marketing, etc, are specialist areas and rural producers are not able to cope with this, needing professional support

  5. Producer Company (PC) A holistic concept PC is an entity for, by and of producers Needs government funding PC staffed by professionals Producers responsible for on farm activities Managed by professionals

  6. Professionals take over all the risks and responsibilities of producers, other than on-farm activities

  7. PC as a PPP for delivery of Govt programs PC functions as a hub for rural sustainability delivery of government programs & schemes, creates common facilities, adds value locally micro finance logistics, etc

  8. How can a PC address the food and nutrition security of the community?

  9. PC members produce to meet all their own needs • PC collects and distributes produce at farm-gate prices, enhance ‘purchasing power’ • PC services the nutrition, health and food needs of the area after meeting member/community needs

  10. What is the difference between a PC and an Institutional PC (IPC)? • PC is a local platform • IPC is promoted by, say ten PCs, located at the district, state or national level, requiring sizeable investments and turnover

  11. PC could make a difference between subsistence farming and sustainable production in rural areas, especially small holder farmers

  12. PC gives the rural producer • Identity • Capacity • Brand • Empowerment • Equity • Dignity

  13. Planning commission and all concerned ministries to also make their schemes available to PCs, show PC intervention as the most feasible platform for delivery of Government programs to the agriculture, rural and tribal areas. • Staffed by professionals and being governed by the company's act, PC is accountable, making it possible for financial institutions to deal directly with them. • Government funding made accessible to PCs, eg as in MP DPIP an amount of Rs 25 lacs is given as fixed deposit to the financing against viable projects.

  14. J J Irani Committee for removal of the PC legislation from the Company's Act be opposed, as recommended by Dr Prof Alag and accepted by the PM and the dept of company affairs. • Replace the 'unabling' components resulting in no conversion and or the setting up of PCs by 'enabling' factors to correct this situation. • All the communities wishing to join PCs are able to do so as sustainability of small holder farmers and other producers is only possible on forming of groups into PCs and locally

  15. Thank you

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