In India, milk producers are struggling for their valid share in terms of milk price, stake in organisation and livelihood development. Same could be ensured by their direct participation in organised sectors. This is possible through 'Producer Companies' which accommodate the special characteristics of Cooperative customs with a regulatory framework of Private Ltd. Company. In a Producer Company, only a producer engaged in an activity connected with or related to Produce (Milk) can participate in the ownership. The members have necessarily to be the primary producers as defined under the Companies Act, 1956. Hence, in order to retain producers' hold in the Dairy sector, there must be a strong Producer Organisation in the form of Milk Producer Company. PAAYAS MILK PRODUCER COMPANY LIMITED was incorporated on May 19, 2012 under Part IX A of the Companies Act 1956. Since inception, the company has received overwhelming response From the milk producers who have applied for the membership of the company and resulting that the Company has successfully allotted membership to nearly 90 thousand milk producers of Rajasthan. At present, the company has its operations in eight districts in Rajasthan and daily harvests more than 5 lakh litres of fresh raw milk from its producer-members spread in nearly 3,000 villages of State.