Local goverment policy and innovation are one of the keys to achieve regional economic growth, so economic conditions must be identified appropriately so that policy making would be right on target. This study aims to identify the market structure and distribution patterns of the main food commodities in East Priangan which are the source of supply in Tasikmalaya City, as well as local government innovations to encourage economic growth through trades in these main foods. Market structure analysis was identified using the CR4 and HHI methods, as well as descriptive analysis from indepth interviews with primary data. The economy of Tasikmalaya is dominated by the trade sector, with around 60% of household cunsumptions are for food. The study results showed that the market structure of the main food commodities tends to be oligopolistic and there are several main players in the upstream chain. Meanwhile, for retail traders, significant issues emerged after the Covid-19 pandemic which reduced public consumption, causing an over supply. So the local government innovation made is developing online traditional markets through a marketplace managed by Koperasi called PCO. In the future, PCO development can be carried out in collaboration with major players in the upstream supply chain so as to cut the distribution chain, increase supply availability in Tasikamalaya City, and maintain price levels which in turn support price stability and encourage consumption thus supporting economic growth.
Local government innovation, market structure, traditional market digitalization