Cereals Prices Increase, Household Welfare, Poverty and Income Inequality in Togo

In this paper, the short and the long-run potential impact of higher maize and sorghum prices on households' welfare, poverty and income inequality in Togo are estimated using households survey data in a compensating variation analysis framework. Results have shown that, while households are on average adversely affected in the short-run, in the long-run, higher maize and sorghum prices are associated with poverty reduction for the country as a whole and for producers and rural households. However, higher maize and sorghum prices do not significantly affect income inequality in Togo. Results vary across regions, are sensitive to supply responses and suggest that, if the Togolese government' policy response to the global food crisis is reinforced and a great attention is paid to rural poor, maize and sorghum will play an important role in poverty reduction in Togo and an emphasis on the poorest region in Togo, the Savanna region, will yield greater results than other regions