ASSESSING THE SOCIO-ECONOMIC CONDITIONS OF AGARWOOD INDUSTRY WORKERS: INSIGHTS FROM HOJAI DISTRICT

Abstract

The history of the agarwood industry in Hojai dates back several decades, centered around the production of agarwood—a highly valued aromatic resinous wood formed in the heartwood of certain tree species of the genus Aquilaria, particularly Aquilaria malaccensis. The industry has significantly contributed to the socio-economic development of Hojai and its surrounding areas by creating employment opportunities for local communities and boosting the regional economy through the sale and export of products such as agarwood chips, oil, and incense. With a growing global demand for agarwood-based products like perfumes and incense sticks, the industry holds considerable economic and cultural importance. Primary data for this study were collected from 381 households during March and April 2024. The findings reveal that employment in the agarwood industry has substantially improved the socio-economic status of its workers, elevating them into lower-middle, middle, and upper-middle-income groups. This indicates that the industry serves as a pathway to upward mobility and financial stability, promoting equitable wealth distribution and narrowing socio-economic disparities. The study also highlights that out of the 381 surveyed households, 317 were residents, underscoring the industry's role in addressing unemployment within the region. Given its potential to generate employment and uplift local communities, the study recommends a proactive role for the government in supporting and developing the agarwood industry to harness its full socio-economic benefits.