Impact of Government Policies and Subsidies on Litchi Productivity in Selected Districts of Assam: An Econometric Analysis

Abstract:

Agriculture plays a crucial role in the economic development of India, particularly in states like Assam where horticulture contributes significantly to farmers' livelihoods. Among various horticultural crops, litchi has emerged as an important fruit crop due to its high market demand and suitability to regional agro-climatic conditions. Government policies and subsidy programs have been introduced over time to enhance productivity, reduce input costs, and promote sustainable agricultural practices. Understanding the effectiveness of these interventions is essential for improving policy design and ensuring equitable agricultural growth. This research examines the effect of government policies and subsidies on litchi production in the three major districts of Assam - Sonitpur, Jorhat and Tinsukia. The study uses econometric tools, specifically multiple regression analysis, to establish the link between productivity and financial support, irrigation, fertiliser use, and training to farmers for litchi cultivation. The study has used secondary data for a specific time period. The findings show that financial assistance and policy measures have a positive and significant impact on litchi productivity per hectare. But the extent of the effect differs between districts, depending on the level of infrastructure, awareness and the efficiency of policy implementation. The research shows that areas with improved irrigation facilities and extension support, like Jorhat, experience increased productivity. It suggests that improving the effectiveness of policy interventions and alleviating disparities can further boost litchi yield in Assam.