Evaluating the Impact of Government Horticulture Schemes on Farm Productivity and Income in Himachal Pradesh: A Quasi-Experimental Analysis

Abstract

 Himachal Pradesh, a mountainous state in northern India, has implemented multiple government horticulture schemes to enhance farm productivity and income. However, rigorous impact evaluations using causal inference methods remain limited. This study evaluates the impact of major government horticulture schemes—particularly the Mission for Integrated Development of Horticulture (MIDH), micro irrigation programs, and protected cultivation subsidies—on farm productivity, income, and technology adoption in Himachal Pradesh. This study employed a quasi-experimental design using propensity score matching (PSM) and difference-in-differences (DiD) approaches. Primary data were collected from 400 farmers (250 beneficiaries and 150 non-beneficiaries) across four districts representing different agro-climatic zones. Secondary data on scheme implementation, budget allocations, and productivity trends were obtained from the Himachal Pradesh Horticulture Department. Protected cultivation under government subsidies increased farmer income by approximately 25% (p < 0.001). Micro irrigation schemes demonstrated substantial positive returns, with input-output ratios ranging from 2.23 (brinjal) to 38.78 (pomegranate). Apple productivity growth varied significantly across zones (0.57%-4.78% annually). Technology adoption rates ranged from 38% (cold storage) to 71% (drip irrigation). Government subsidies covered 72.44% of protected cultivation capital costs (₹2, 29,438 per unit). Government horticulture schemes significantly improve farm productivity and income in Himachal Pradesh, though effectiveness varies by scheme type, crop, and agro-climatic zone. Enhanced extension services, improved credit access, and targeted infrastructure development are critical for maximizing scheme impacts.