Can a private sector based agriculture commodity market thrive in an economy dealing with food insecurity and government subsidies to small holder farmers?
Would a government supported alternative, with necessary supportive legal framework instead be a better route?
A private-sector commodity market can succeed even where food insecurity and farm subsidies exist—but only if government sets the ground rules, ensures fair enforcement, and provides basic infrastructure. Without that, private players won’t invest with confidence.
A fully government-run model might bring short-term stability but often becomes inefficient. The most sustainable path is usually a blend: government creates the framework and trust, while the private sector drives trading, storage, and finance.
Yes-private actors may bring in better logistics, storage quality control and price discovery mechanisms, e.g. commodity exchanges. However, government subsidies can create market distortions, discouraging private players. In food-insecure economies, governments are reluctant to leave food distribution entirely due to political and humanitarian risks. A government-supported model stands a better chance if accompanied by the right legal, institutional and infrastructural support.