Supply chain
Middlemen in Pakistan's produce supply chain, explained
In Pakistan, fresh produce commonly moves from the farmer through a commission agent (arhti) and wholesale market (mandi) to retailers before it reaches consumers. These intermediaries provide credit, aggregation and logistics, but they can also concentrate market power, which leaves small farmers with limited price visibility. Direct selling changes the information flow more than the physical journey.
How produce usually moves today
A typical fresh produce journey in Pakistan runs from the farm to a commission agent, known as an arhti, who sells the produce at a wholesale market, the mandi. Wholesalers and retailers then buy from the mandi and sell on to households, shops and restaurants. Variations exist for every crop and region, and some produce is sold through contract buyers or processors instead.
| Role | What they typically do | Why farmers use them |
|---|---|---|
| Farmer | Grows and harvests the crop | n/a |
| Arhti (commission agent) | Sells the crop at the mandi for a commission and may advance credit | Market access, immediate cash, credit |
| Wholesaler | Buys in volume and redistributes | n/a |
| Retailer | Sells to households and businesses | n/a |
Where small farmers lose out
The Asian Development Bank has described concentrated market power as one of the structural constraints on Pakistan's fruit and vegetable sector, alongside weak storage, packing and transport. For a smallholder these show up in practical ways.
- Limited price information. The farmer may not know what the produce sells for further down the chain.
- Weak bargaining position. A farmer who has borrowed against the crop has less room to wait for a better price.
- Perishability. Fresh produce cannot wait, which pushes sellers to accept the first workable offer.
- No credit record. Without formal records, banks are hard to approach, so informal credit fills the gap.
Agriculture contributed about 23.5% of GDP in FY2025 and employs roughly 37% of the labour force, per the Pakistan Economic Survey 2024-25, so how these outcomes are shaped affects a very large number of households.
A fair view of intermediaries
It would be wrong to treat every trader as exploitative. Many arhtis provide credit when no bank will, aggregate small lots into marketable quantities, and carry the risk of unsold produce. Any alternative has to replace those services, not just remove the person who performs them.
What direct selling changes
| Problem | How a direct platform can help | Still needed |
|---|---|---|
| Price visibility | Farmers see and set the price buyers see | Good market information |
| Bargaining power | Farmers can choose between buyers | Enough buyer demand |
| Transport | Delivery partners are matched to orders | Reliable roads and drivers |
| Trust in quality | Grades and traceable records | Honest grading and inspection |
| Credit | Order history and loan applications | Lenders willing to say yes |
Farm2Fork is built around that table. Farmers set prices, orders are tied to named farms, delivery is handled by claimed transport jobs, and a loan application route is provided for farmers. It is a pilot, so these are goals being tested rather than proven results. See how it works.
What this means for buyers
If you buy directly, you gain a known source and fewer handoffs, and you take on some of the planning the mandi does for you. The buying guide explains how to do that sensibly.
Common questions
What is an arhti?
An arhti is a commission agent at a Pakistani wholesale market (mandi) who sells a farmer's produce to buyers in return for a commission, and often advances money or inputs to farmers against the crop.
Does selling directly mean farmers always earn more?
Not automatically. Direct selling can remove some intermediary margins and gives farmers price visibility, but farmers also take on tasks such as grading and arranging transport, which platforms try to support.
Sources
See how Farm2Fork puts this into practice
Direct orders from named farms, delivery quotes up front, and a QR journey for every order.