Eligibility Criteria for Farmer Producer Companies (FPCs)
It is a duly registered FPC as defined under Part IXA of the Indian Companies Act, 1956.
It has raised equity from its Members as laid down in its Articles of Association/Bye laws.
The number of its Individual Shareholders is not lower than 50.
Its paid up equity does not exceed Rs. 30 Lakh.
Minimum 33% of its shareholders are small, marginal and landless tenant farmers as defined by the Agriculture Census carried out periodically by the Ministry of Agriculture, GOI.
Maximum shareholding by any one member other than an institutional member is not more than 5% of total equity of the FPC.
Maximum shareholding of an institutional member should not be more than 10% of total equity of the FPC.
It has a duly elected Board of Directors (BoD) with a minimum of five members, with adequate representation from member farmers and minimum one woman member.
It has a duly constituted Management Committee responsible for the business of the FPC.
It has a business plan and budget for next 18 months that is based on a sustainable, revenue model as may be determined by the Implementing Agency.
The FPC has an Account with a bank (Scheduled Commercial Bank as per RBI Act, 1934)
It has a Statement of Accounts audited by a Chartered Accountant (CA) for at least one full financial year.
