Commission agents or aadhathiyas play an integral role in the Indian agriculture systems. They are the ones taking care of all the trading activities in APMC mandis. Commission agents are responsible for arranging farmer and seller connections, price negotiations, managing accounts, and much more. They also facilitate auctions in the market yards so that farmers can easily sell their commodities to prospective buyers. Let’s discuss commission agents and how they are important in mandi systems.
They ensure a smooth trade between farmers & buyers.
Facilitating trades between farmers and buyers, aadhatiyas are an important part of the mandi system in India. Apart from just charging commissions for their work, there’s a lot more on their plates. Starting from unloading and sorting of produce to packaging and loading, they are involved in almost every mandi operation. They help farmers and buyers crack a better deal for a lot. They also provide storage facilities in case the product couldn’t be sold the same day. In a nutshell, they make sure that the end-to-end processing is smooth.
They add value to Agri-chain and earn reasonable commissions
By handling tonnes of commodities, aadhatiyas earn a commission. But that income is not theirs entirely. Commission agents usually employ laborers who help them in loading, unloading, cleaning, bagging and auctioning the produce. Apart from salaries, aadhatiyas also provides food and accommodation to these laborers. Other expenses borne by the aadhatiyas are electricity, machines, electronic weighing scales, etc. While some of these expenses are recovered from the farmers or buyers, some are paid from their own pockets.
They help farmers in every possible way to maintain trust-based relationships
Under the current mandi system, farmers bring their produce to the commission agents in regulated APMCs. After receiving the agricultural goods from the farmers, commission agents prepare them for auctions. As soon as a buyer wins the bidding, the goods are loaded on their trucks after being packed and weighed by the commission agents. The farmers are free as they get their receipts. Farmers do not get bank loans easily so commission agents lend them money as well.
They keep records of all sales and purchases.
Despite working hard all day long, commission agents are also expected to keep a log of all the financial transactions related to their sellers and customers. Today’s aadhathiyas are also taking advantage of online accounting software available in the market. These software programs are designed keeping in mind the daily tasks of commission agents. It helps them in recording the company details of sellers and customers, along with the items purchased and sold. They can also take prints of those reports and share them over Whatsapp.
ChargeERP is one of the easiest online accounting software that caters to the needs of commission agents. The solution is powered by Bijak, India’s No. 1 agri-trading app to increase the effectiveness of mandi operations. It is a cloud-based accounting software secured with end-to-end encryption. By utilizing this accounting platform, commission agents can cut down their time and energy by 90%. Some other advantages the software offers are:
- Access from anywhere
- 100% control over data
- Data security guaranteed
- Manage team remotely
- Regional language support
- Multi-device access
- Inventory management
- WhatsApp sharing of Reports
- Six all-inclusive reports
- Downloadable Bills & Receipts