2021/08/09 by Elumalai Kannan, Kannan, Elumalai, Sanjib Pohit +2
Agricultural and Biological Sciences · Economics, Econometrics and Finance · #62P20 #Agricultural Economics and Practices #Agricultural Innovations and Practices #Agricultural risk and resilience #Economics of Agriculture and Food Markets #FOS: Economics and business #General Economics (econ.GN) #J.4
paper · pdf · doi:10.48550/arxiv.2108.03912
openalex publication_date 2021/08/09 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Agriculture plays a significant role in economic development of the\nunderdeveloped region. Multiple factors influence the performance of\nagricultural sector but a few of these have a strong bearing on its growth. We\ndevelop a growth diagnostics framework for agricultural sector in Bihar located\nin eastern India to identify the most binding constraints. Our results show\nthat poor functioning of agricultural markets and low level of crop\ndiversification are the important reasons for lower agricultural growth in\nBihar. Rise in the level of instability in the prices of agricultural produces\nindicates a weak price transmission across the markets even after repealing the\nagricultural produce market committee act. Poor market linkages and\nnon-functioning producer collectives at village level affect the farmers\nmotivation for undertaking crop diversification. Our policy suggestions include\nstate provision of basic market infrastructure to attract private investment in\nagricultural marketing, strengthening the farmer producer organisations, and a\ncomprehensive policy on crop diversification.\n