Grain Marketing Parastatals in Asia: Results from Six Case Studies

SummaryUsing case studies from six Asian countries, this paper assesses the relevance of underlying rationales for public intervention in food grain markets, documents the existing policies and regulatory supports to grain marketing parastatals, examines benefits and costs of parastatals, and summarizes lessons from reforms and reduced interventions. The results suggest that commonly cited rationales for food market intervention are no longer convincing, the costs of parastatals-led price stabilization are staggering, and the price policies are being dictated by special interests. The evidences from the early reformers indicate that reduced intervention can promote competition, reduce subsidies, and release funds for development and anti-poverty programs—all without jeopardizing price stability.