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Dos & Donts for Mandi Trading Business

Mandi Trading Business: Dos & Don'ts

Are you a mandi trader who is looking to grow their agri trade? Then this blog is for you! Here you will get answers to all the questions related to mandi trading business

As we all know, India is an agricultural economy. All kinds of agri commodities are grown here; a large part of the produce harvested is consumed in the country while some of it is exported. Therefore, this gives an agri trader ample opportunities to grow their mandi business. And, to make things more convenient – we have rounded up a checklist of the dos and don’ts for mandi trading.

Do’s for Mandi Trading Business

  1. Raise Working Capital: You must have a good amount of working capital before starting a mandi business. Sometimes you can incur losses, and working capital helps you manage your funds during such contingencies.
  2. Choose a Good Place: Many traders have their warehouses, while some have to buy or rent space. Whichever option you choose, make sure the place is near the mandi for easy trading and transportation.
  3. Arrange a Warehouse: For your mandi business, you will need a good warehouse to store agri commodities you purchase from the farmers. Also, the warehouse should be completely waterproof.
  4. Create a Trusted Trader Network: Connect with trusted farmers, buyers, and suppliers to create a strong network. That will help you understand their way of doing business along with their trading requirements.
  5. Apply for License & GST Number: For mandi trading, you will first have to complete the license process by registering as a trader on the website of ‘APMC’ (Agriculture Produce Market Committee). As your business grows, you will have to apply for a GST number. You can also run your business under the license of a commission agent for some time as a rental.
  6. Maintain Hygiene & Cleanliness: Cleanliness is necessary as no one will buy dirty or rotten commodities. Wherever you store your agri commodities, make sure it’s free of dirt or insects. While buying produce from the mandi, check the quality thoroughly.

  1. Trade Digitally: Nowadays, the internet plays a pivotal role in growing your business. Therefore, you need to have good knowledge of how you can buy or sell agri commodities online. Many digital agri trading apps are available for the same.
  2. Gather Information about Demand/Supply: A trusted network across the mandis helps get you to the most profitable supply deals when demand increases. The bigger your network is, the higher your profit will be.
  3. Build Trust: If you’re buying good quality agri commodities from farmers or suppliers and making your payments on time, this will make you a trusted party among all the traders in the business. And, they will want to trade with you in the future too.

Don’ts for Mandi Trading Business

  1. Don’t connect with too many brokers: You’ll be able to earn higher profits only when you buy commodities from farmers/suppliers and deliver them directly to end-buyers. Buying through brokers will split your profits.
  2. Don’t leave the warehouse unchecked: If you buy a godown at a cheaper rate and store your commodities in it without maintenance, you might incur losses because weather affects the agri commodities adversely. Rains might cause them to rot, while excess heat during summers might spoil them.
  3. Don’t make the wrong decision: Don’t be in a rush to buy or sell agri commodities. First, check the produce thoroughly, then store them in your warehouse. Buy only that much you can sell.

If you also want to grow your agri trade or mandi business digitally, it’s time to be a part of India’s largest online agri trader network. You can easily download the Bijak App for free!

With this agri trading platform, you’ll be able to trade with trusted parties in just a few clicks. You can even chat/call and trade with trusted mandi agri traders as per your trading needs. Bijak also helps you make or receive secure payments 24/7 while keeping a digital record of your transactions.

We hope you found this piece of information insightful. If you wish to know more about agri trading or mandis, please tell us in the comments below. And, do follow us on all our social media handles.

Also check: How Are Mandis Regulated In India? – Bijak Blog

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