How To Minimize Losses In Mandi Trading Business?

how to minimize losses in mandi trading business

The mandi traders sometimes have to bear huge losses while running their businesses. The reason behind this loss is lack of knowledge of some crucial factors that affect mandi trading. This further hinders the process of good decision making. This blog highlights 5 such crucial factors that will help you minimize losses while running your mandi business.

  • Nature of Mandi : There are two types of mandis in India – buyer mandi and supplier mandi. For example, Nashik mandi comes under supplier mandis because there are more suppliers of agri commodities than buyers. From this mandi, commodities are supplied to other mandis across the country. Delhi’s Azadpur mandi comes under both buyer and supplier mandis. Being the largest mandi in Asia, there are a large number of both mandi buyers and suppliers. Therefore, it is necessary to decide where you should buy or sell your commodity by understanding the nature of the mandis in India. For example: If you are an onion buyer in Amritsar mandi, you can buy onions from Azadpur mandi in Delhi. However, buying onions from Nashik mandi suppliers can get you better quality onions at profitable rates.
    Supplier Mandis: Nashik, Agra, Indore, Disa Gujarat, Kanpur, Narayanan Otur Pune, and Mandsaur Mandi MP.
    Buyer Mandis: Vashi Mumbai, Pune Gultekari, Azadpur Delhi, Patna, Kolkata, Bangalore, Hyderabad, Ahmedabad, Jaipur, and Amritsar.
  • Supply Area: Supply area is vital to run a smooth mandi trading business. This is the place where you sell your agri commodity. Go for a big mandi only if you are confident that you’ll get the desired rates by selling your commodity there. Else, you can save on your transportation costs by selling the same in the nearest mandi. If you don’t get the rate you want in the big mandis, then your profit gets reduced.
  • Quality of Agri Commodities: In big cities like Mumbai, Pune, Delhi, Bangalore, Hyderabad, Chennai, and Kolkata, you have to provide high quality agri commodities. The end-customers in big cities are your value customers. Here, we are not drawing a comparison of people by the cities they live in but by their lifestyle and ability to spend money. Commodities are sold at a higher price in the mandis of big cities. If high quality commodities are not sold in the mandis of small cities, there is a possibility of loss. In general, normal-quality agri commodities are easily sold in small towns. Therefore, whenever you need to decide about selling commodities to big mandis, go for only high-quality goods.
  • Seasonal Loading: If you do seasonal loading, the arrival of mandi agri commodities is less in the beginning and increases in peak season. By the end of the season, the quality of the commodities start deteriorating, and the arrival also decreases. So, it’s crucial to make the right decision at the right time. For example, if you are a bottle gourd supplier from Indore’s Barwani and want to supply your goods to Delhi, you should know from which places the bottle gourd reaches there during that month. If you want to supply gourd to Delhi and it’s coming from Ghaziabad, you will not get much benefit because the distance between Ghaziabad & Delhi is less as compared to Indore & Delhi. So, the gourds from Ghaziabad would reach there sooner. As a result, when your gourds from Indore will reach the Delhi market, supply would be much higher than the demand and prices of your commodity will fall drastically. So, during such times, you should send gourds to Kanpur or any of your nearest mandis – a place where demand is high and supply is low. This will help you avail huge benefits.
  • Mandi Trader Network: What is the price of your commodity in different mandis? In which mandi do you want to sell your commodities?
    To get apt answers to these questions, it’s necessary to build a good business network with trusted mandi traders across the country. This will help you consult them and make the right decision for your mandi business. If you do business with people you know but don’t network with new traders, you might lose the opportunity to deal with a trusted trader of another mandi who could get you a better rate for your commodity.

We know it’s not an easy task to build a strong mandi trader network across the country. So, we recommend you to download the Bijak app to make mandi trading business easier. Bijak is India’s most trusted agri trading app where you get the latest rates for your agricultural commodities from 2,000+ top mandis. You can also get the best deals by connecting digitally with 30,000+ verified traders via chat or call.

We hope you found this blog insightful. If you wish to know more about any topic related to agri trading, please tell us in the comments below. Also, do follow us on our social media handles.