Capital Wealth

India has long been an agriculture – centric economy, with the agriculture sector providing employment to about 58% of India’s population and contributing 17-18% to the country’s GDP. Yet, the agriculture sector is one of the most unorganized sectors in Indian economy. The government of India, taking cognizance of the issue, set up a high - powered committee under the chairmanship of Dr. Y.K. Alagh examine the issue. Based on the report submitted by the committee, in 2002, the Ministry of Company Affairs introduced a bill for amendment of Companies Act, 1956 and inserted Chapter IX-A, which opened the doors for the primary producers to organize themselves and gain maximum profit from the economy. Producer Organization (PO) A PO is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, etc. It is a hybrid between a private limited company and a cooperative society, taking on the strengths of both these forms of organizations. A PO is a company f...