Mandi Guide
How APMC Mandi Works in India — Complete Guide for Commission Agents 2026
MandiGrow Research Team
3 August 2026
14 min read
What is APMC? (Simple Definition)
APMC stands for Agricultural Produce Market Committee. An APMC is a statutory market body established by state governments in India to regulate the trading of agricultural produce. India has over 7,500 regulated APMC mandis and 22,000+ sub-mandis across all states and UTs.
Key Players in an APMC Mandi
- Farmer (Kisaan): Brings produce to the mandi for auction. Receives net payment after all deductions via patti.
- Commission Agent (Arhtiya): Central figure. Receives produce, arranges auction, collects from buyer, pays farmer. Earns arhat (commission) 2.5%–6%.
- Buyer (Phadte/Trader): Bids in auction, purchases produce, pays gross to commission agent.
- APMC Market Committee: Collects market fee, manages infrastructure, issues licenses.
- Hamals/Coolies: Labour for loading/weighing. Their charges (hamali) deducted from farmer.
Step-by-Step: APMC Mandi Transaction
- Farmer arrives at gate — gate pass issued
- Produce weighed at certified weighbridge
- Commission agent displays produce for buyers
- Auction (Bolai) — highest bidder wins each lot
- Commission agent calculates patti: gross − arhat − hamali − cess − advance
- Buyer pays commission agent; commission agent pays farmer
- Documents issued: APMC sale challan, buyer invoice, farmer patti
Key APMC Mandi Terms
| Term | Meaning |
|---|---|
| Arhat/Adat/Dami | Commission earned by commission agent |
| Hamali | Labour charges for loading/unloading/weighing |
| Tulai | Weighing charges at mandi scale |
| APMC Cess | Market fee paid to APMC committee |
| Patti | Farmer's settlement receipt showing all deductions |
| Bahi/Khata | Account book for farmer and buyer transactions |
| Advance/Taka | Pre-season advance paid to farmers, recovered at sale |
| Bolai | The auction/bidding process at mandi |
| Pakka Arhtiya | Commission agent dealing between commission agents (wholesale) |
| Kacha Arhtiya | Commission agent directly dealing with farmers (retail) |
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