A kachi arhti facilitates the farmer's sale and earns commission, while a pakki arhti can also buy produce on their own account and resell it. This difference affects who carries stock risk, price risk and payment responsibility.
What does a kachi arhti do?
The kachi arhti receives the lot, helps sell it through boli, collects from the buyer, deducts agreed charges and pays the farmer the net amount.
What does a pakki arhti do?
The pakki arhti may purchase the lot, hold stock and sell later. Their profit can come from trading margin as well as commission.
Related: Kacha/Pakka Arhti glossary, Party ledger, Pakka Khata for adhatis.