Improving Agricultural Market Performance:
Creation and Development of Market Institutions
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5. Licensed public warehousing companies, which provide stocking, warehousing,
storage, handling, logistics and transportation of agricultural and food products.
6. Commodity exchange platforms, which are market exchange places where
agricultural and food commodities are exchanged, traded, monitored, and supervised.
Figure 3 – Conceptual Framework of Market Institutions
Source: Investment Consulting Associates – ICA (2017)
Facilitation Function
Selected Agricultural
Market Institutions
Physical Function Exchange Function
Agricultural Policy
Objectives
Intervention in
Agricultural Market
• Input subsidization and taxation mechanisms
• Output control mechanisms
• Quantity restrictions
• Public sector market operations
• Public Support to Producers and Intermediaries
Production
Handling and Storage
Processing and Packaging
Distribution and Market
Consumption and Trade
Handling and Storage
Production
Processing and Packaging
Distribution and Market
Consumption and Trade
Handling and Storage
Production
Processing and Packaging
Distribution and Market
Consumption and Trade
Commodity market regulation authorities
Cooperatives
State-owned economic enterprises
Marketing Boards
Licensed public warehousing companies
Commodity exchange platforms
CooperativeMarket
Agricultural Market
Performance