Lahore's main fruit and vegetable wholesale market sits on the city's northern side towards the Ravi, and the arhtis (commission agents) who run it handle enormous volumes of produce every morning. An arhti auctions growers' produce to buyers, takes a commission, and often lends money to growers against future crops. Almost none of the money passing through is the arhti's own income.
Commission, not turnover
| Money flow | Arhti's income? |
|---|---|
| Sale proceeds from buyers for growers' produce | No — belongs to grower |
| Commission (arhat) on sales | Yes |
| Market fee / charges deducted for market committee | Pass-through |
| Labour (palledari) charges | Pass-through or income, per arrangement |
| Interest/profit on advances to growers | Income if charged |
An arhti's account may show crores in a season while their income is a small percentage. The sale register (bahi) with each lot, the buyer and the grower is what shows it.
Advances to growers
Arhtis commonly advance money to growers before harvest, recovered from sale proceeds. These advances are loans — assets in the arhti's books and wealth statement — and their recovery isn't income. If the arhti charges extra for the advance, that extra is income. Advances that can't be recovered are bad debts.
Market committee and licensing
Wholesale markets are regulated under provincial market committee law; arhtis are licensed and pay licence fees. Market fees collected from buyers or sellers are paid to the market committee and aren't the arhti's income.
Is agricultural income involved?
The grower's income from selling produce may be agricultural income (provincial). The arhti's commission is business income — it isn't agricultural income just because it comes from farm produce.
Buyers who are retailers
Fruit and vegetable sellers (rehri walas, shops) buying from the mandi are separate businesses. Their purchase is recorded on the arhti's bahi, which can be useful evidence for them.
Keep the daily bahi carefully and keep it for years. It's the single document that shows what was the grower's money and what was your commission.
Cold storage and own trading
Some arhtis also buy produce on their own account, store it and sell later. That's trading — the profit is business income, separate from commission.
Cash management and banking
Arhtis handle large daily cash flows — buyers pay cash, growers want cash. Depositing daily and paying growers through the bank where possible creates a clean trail. Where cash must be paid to growers, keep signed receipts with their CNIC numbers. Those receipts, and the bahi, are what distinguish growers' money from your own.
Ravi Road — questions we get asked
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