Title:
THE EFFECT OF SUBSIDY REMOVAL ON THE PROFITABILITY AND THE COMPETITIVENESS OF RICE PRODUCTION IN SOUTHERN TOGO

Authors:
Koffi Yovo

Volume - 2 Issue - 12, Pages - 5423-5433

Abstract:
The objective of this study is to assess the effect of the removal of the fertilizer subsidy on the profitability and competitiveness of rice production in Togo. To this end, the data were collected through a survey carried out among rice producers in southern Togo. The results show that despite the subsidy removal, the rain-fed and irrigated rice production systems remained financially profitable. However the subsidy removal policy has significantly reduced the profitability and the competitiveness of rice production. Indeed, following the subsidy removal, it becomes more expensive to produce the rice locally than to import it. The implication of the result is that due to the decline of the profitability and the competitiveness of the rice production subsequent to the removal of price subsidy, the government should experiment better methods of subsidy, for example, voucher systems, to encourage poorer and more marginal rice producers to use fertilizer.

Cite this Article:

[Yovo, Koffi. "THE EFFECT OF SUBSIDY REMOVAL ON THE PROFITABILITY AND THE COMPETITIVENESS OF RICE PRODUCTION IN SOUTHERN TOGO." International Journal of Social Science and Economic Research, vol. 2, no. 12, 2017, pp. 5423-5433. December.]