Dues are the pressure point of the season
In agri trade, money flows in a chain. Buyers pay the trader, and the trader pays the farmer. When buyers delay, the trader either pays farmers from his own pocket or makes farmers wait. Neither is good for business. Farmers remember who paid on time, and that memory decides where they bring their crop next season.
Most dues problems are not about bad buyers. They come from not tracking amounts clearly and not following up early.
Set credit terms before you sell
Agree with each buyer on how many days of credit they get. Write it down in their ledger. A flour mill buying regularly may get longer terms than a new trader. When terms are clear, a follow-up call is a reminder of an agreement, not a request for a favour.
Bill clearly and share it the same day
A buyer cannot pay what they have not seen. Share the bill on the day of sale with lot number, weight, rate and charges. If there is a disagreement about weight or quality, it is better to settle it that day than three weeks later.
Weekly dues routine
Pick a fixed day each week to review dues. Go through every buyer with a pending amount and decide what to do.
- List buyers sorted by the number of days pending
- Call those past their agreed credit days
- Send a statement to anyone who disputes a figure
- Stop new credit for buyers who are far behind
- Note promised payment dates and check them
Match payments to bills
When a buyer pays, record which bills the payment covers. If a buyer pays a round amount that covers some bills partly, note it clearly. Otherwise, after a few weeks, nobody knows which sale is still open. Check bank statements against the ledger at least once a week so no payment goes unposted.
Pay farmers in order
On the farmer side, keep a list of who is waiting and since when. Pay those who have waited longest first, unless you have agreed otherwise. Send a slip when you pay, so the farmer has proof and you avoid repeat calls asking whether the money was sent.
Agri input dealers and season credit
Seed and fertiliser shops face a similar problem from the other side. Farmers buy inputs on credit at sowing and pay after harvest. Keep each farmer's purchases in a ledger, with dates and items. Before harvest, check who owes what, and plan your collection visits or reminders around market days when farmers have money in hand.
Keep it polite and factual
A clear statement with dates and amounts does most of the work. Stay polite in follow-ups, and focus on the agreed terms. Long relationships in mandi trade are worth more than one tough conversation.
Common mistakes
- No written credit terms for buyers
- Bills shared days after the sale
- Round-figure payments not linked to bills
- Waiting until the end of the season to review dues
- Paying farmers without sending a payment slip
Watch the buyers who grow fast
A buyer whose purchases suddenly double is good news, but only if payments keep pace. Check that their pending amount is not growing faster than their purchases. Raising a buyer's credit should be a decision you make on purpose, not something that happens because nobody looked.
Write down every promise
When a buyer promises a payment date on the phone, note it against their ledger straight away. On that date, check whether the money came. A written promise is easy to follow up politely, while a remembered one is easy to forget on both sides.
Plan cash around the harvest calendar
Payments in agri trade follow the crop calendar. Before each major arrival season, look at how much you expect to pay farmers and how much buyers currently owe you. If buyer dues are high going into the season, focus collection effort there first. Planning this a few weeks ahead avoids the situation where farmers are waiting at the gaddi while buyer money is still stuck.
How Krishivaan helps
Krishivaan's payments and dues view shows which buyers owe you and how long amounts have been pending, along with farmers waiting for payment. Payments are posted against the party ledger, including part payments.
Bills and payment slips can be sent on WhatsApp, so both buyers and farmers get a record right away. The D&D Technology team in Jaipur sets it up and trains your staff. Message +91 95116 38160 for a demo.
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