Identifying Binding Constraints to Agricultural Growth in Bihar

Given fund shortages, government can at best address one/two most important constraints for agricultural growth. Applying Hausmann growth diagonostic framework, we have attempted to identify binding constraints to agricultural growth in Bihar. We find that the poor functioning of agricultural markets, reflected in the instability in the prices of agricultural produces and the low level of crop diversification, are the reasons for slow or lower agricultural growth in Bihar.