In India, around 60% of population depends on agricultural activities for their livelihood. But, farmers and primary dealers have had a long struggle in India. In the chairmanship of Dr. YK Alagh, they have introduced a producer company concept that allowed primary producers to organise themselves to gain a maximum profit from the market oriented economy.

A producer company is basically a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living. Producer company objects or activities specified in Law and categorized in following manner:

• 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.
• Rendering technical services, consultancy services, training, education, research and development for the promotion of the interests of its Members.
• Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce.
• Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.