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Commission agent (arthiya / dalal)

A commission agent — known regionally as an arthiya, adhatiya or dalal — is a licensee of an Agricultural Produce Market Committee (APMC) who transacts on behalf of farmer-sellers in a notified mandi. The role combines auction conduct, weighment, payment settlement and documentation, and is one of the central licensed roles inside the APMC system (see Apmc Mandi).

Overview

When a farmer brings produce to a mandi, an arthiya receives the consignment, displays it in the auction hall, calls the auction (or open tender), arranges weighment by a licensed weighman and settles payment to the seller after the buyer takes delivery. The arthiya is also responsible for issuing the statutory sale documents.

Eligibility

Operating as a commission agent inside a notified market area requires a current licence from the relevant APMC under state APMC rules. Applicants must satisfy probity, premises and financial conditions specified by the state Agricultural Marketing Board and must furnish surety as prescribed in the bye-laws.

Benefit and structure

The arthiya's remuneration is a regulated commission, fixed by the APMC, that is typically expressed as a percentage of the sale value and charged either to the buyer or to the seller per the local bye-laws. Two documents anchor the transaction:

  • J-Form, issued to the farmer-seller as proof of sale
  • I-Form, issued to the buyer as an auction sale invoice

Under model APMC rules an arthiya cannot trade on their own account inside the yard and must file monthly returns of arrivals, stock and despatch.

Implementation

APMC market supervisors monitor adherence to commission caps, ensure timely settlement to farmers and audit J-Form and I-Form registers. Where states have adopted the Model APMC and Contract Farming Acts (see Contract Farming), direct purchase by processors and electronic auctions on Enam Electronic National Agriculture Market coexist with traditional arthiya-mediated trade.

See also Apmc Mandi, Enam Electronic National Agriculture Market and Contract Farming.

References

  1. Punjab State Agricultural Marketing Board: Acts, Rules and Bye-Laws.
  2. Agricultural Produce Market Committee — overview. Wikipedia.