Is the Licensed Warehousing System in Türkiye Sustainable? Concerns and Issues

Abstract

This study evaluates the current functioning, sustainability, and main challenges of the licensed warehousing system in Türkiye, which was legally established in 2005 and has expanded rapidly since 2016, based on the perspectives of licensed warehouse operators. The research was designed within a qualitative research framework and relies on primary data obtained from semi-structured face-to-face interviews conducted with 30 licensed warehouse enterprises operating in different regions of Türkiye. The findings indicate that although the licensed warehousing system has reached a considerable physical capacity, its economic sustainability remains questionable due to insufficient inspection mechanisms, the lack of full independence of authorized classifiers in practice, the dominant role of the Turkish Grain Board (TMO), and high operating costs. While operators emphasize the positive contribution of licensed warehouses to the food supply chain by enabling year-round product availability, they also state that the price stabilization function of the system is largely shaped by TMO interventions, limiting its market-based role. The results suggest that strengthening inspection and control mechanisms, ensuring the institutional independence of authorized classifiers, and redefining the role of TMO within the system are critical for improving the effectiveness and sustainability of licensed warehousing in Türkiye.