Even before India achieved its independence, cooperatives quickly emerged as the most popular kind of institutional structure for generating collective action in business and entrepreneurship. After liberalization, it became clear that the agricultural sector required a new institutional system to reawaken the collectivist notion that had been dormant there, mainly to acknowledge the value that small and marginal landholders may generate. The idea of a farmer producer company (FPC), which was added to the Companies Act of 1956 in 2002, came about as a way to help all farmers, especially small and marginal farmers and later was included in the Companies Act of 2013 as it is. The purpose of this research is to investigate the organizational framework of producer firms and make an effort to explore the policy changes that might facilitate the growth of producer companies in India. The researchers in this article have adopted doctrinal research methodology and analytical approach to review the law and policy aspects of producer companies in India. The article has concluded that producer company reforms inserted in the companies act 2013 with policy initiatives of government instrumentalities under the ease of doing business mandate have strengthened the governance of producer companies. Producer organizations now have the choice to strategically change to prepare farmers for the contemporary environment of competitive marketplaces.
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