Page 40 - Banking Finance December 2018

A

ar er rod cer r anisation is a e a entit for ed
rrent stat s of
pri ar prod cers i . a and ar ina far ers hich
resent aro nd s are in e istence in the co ntr
is direct en a ed in a ric t re and a ied acti it as crop
hich ere for ed nder ario s initiati es of the o t. of
prod ction dair fisher ani a h s andr po tr ee
ndia inc din tate o ern ents B R and
eepin and seric t re etc. can e a prod cer
other or ani ations o er the ast ears. f these
co pan a cooperati e societ or an other e a for
aro nd 2 s are re istered as rod cer o panies
hich pro ides for sharin of profits enefits a on the
and the re ainin as ooperati es ocieties etc. Ma orit
e ers.
of these s are in ear sta e of their operations ith
shareho der e ership ran in fro to o er
ssentia feat res of a far ers and re ire not on technica hand ho din t a so
or ed a ro p of prod cers for either far or non ade ate credit capita and infrastr ct re faci ities
far acti ities. inc din ar et in a es for s stainin their siness
operations.
t is a re istered od and a e a entit .
rod cers are shareho ders in the or ani ation.
orm tion o i r m
t dea s ith siness acti ities re ated to the pri ar
B R
prod ce prod ct
t or s for the enefit of e er prod cers.

part of the profit is shared a on st the e er and
e e op ent n
rest of the s rp s is added to its o ned f nds for
siness e pansion.

ee of for ation of
Reso r e s pport a en R
he ain ai of is to ens re etter inco e for the
prod cers thro h an or ani ation of their o n. a
prod cers do not ha e the o e indi id a oth inp ts
and prod ce to et the enefit of econo ies of sca e.
ro otin nstit tions s
Besides in a ric t ra ar etin there is a on chain of
inter ediaries ho er often or non transparent
eadin to the sit ation here the prod cer recei es on a
s a part of the a e that the ti ate cons er pa s.
s
hro h a re ation the pri ar prod cers can a ai the
enefit of econo ies of sca e.
pport nities for finan in to s

an s
o ens re s staina i it and econo ic ia i it of s their
n rt rin p a s an i portant ro e in ta in p ia e
siness acti ities i e a re ation of prod ce co ecti e
ar etin proc re ent of inp ts pri ar processin
etc. o eet the credit re ire ents of s in road
cate ori ed into three phases.
a n ation an ar ta e t this sta e the financia
need of the s re o es aro nd the cost of o i i in
far ers re istration cost cost of operations and
ana e ent trainin e pos re isits etc.
er in an ro in ta e nce s are inc ated

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