Bihar’s economy is fundamentally agricultural and rural with about 25% of the state GDP being contributed by the agriculture sector (including forestry and fishing). The state is located on the flood plains of a major river that makes agriculture easy.

Agriculture is the key to the overall development of the State economy. Agriculture employs 77% of the workforce in Bihar, as a percentage this is significantly higher than the national average. The soils are light, alluvium - derived soils mostly khaddar (recent alluvium) and hanger (Old alluvium)

The key production statistics for the state (the year 2015-16) are presented below:

Bihar is well endowed with natural resources like land and water, vital for agriculture and crop production. The soils are predominantly Alluvial (Gangetic) or Swamp or Terai, rich in nutrients like nitrogen, potash, and phosphorous. The state has surplus water resources with the potential for double and multiple cropping. These need to be tapped. The production levels of major fruits in 2011-12 were mango (12.41 Lacs MT), guava (2.45 Lacs MT), litchi (2.36 Lacs MT), and banana (15.80 Lacs MT). Bihar is the largest producer of litchi, the third largest of pineapple, and the fourth-largest of mango in India.

Production Cluster of the State:-

Bihar has the following marketing facilities in the state:

• Food Processing Units: There are 407 food processing units in Bihar as of 2015-16, out of which 278 (68.3 %) were operational. Over two-thirds of the agro-based industries in Bihar are engaged in the processing of cereals
• Agri-Export Zones: A total of 12 Agri-Export Zones have been identified in Muzaffarpur, Samastipur, Hajipur, Vaishali, East and West Champaran, Bhagalpur, Begulsarai, Khagaria, Sitamarhi, Saran, and Gopalganj for focus products like Litchi, Vegetables, and Honey
• 100 main wholesale agricultural markets in the state
• 355 Cold Storage Units with a capacity of 23.26 lakh1 MT
• Central Warehouse Corporation(CWC) capacity 1.18 lakh1 MT, State WarehouseCorporation(SWC) capacity 2.6 lakh1 MT, Total storage capacity in the state is 7.19 lakh1MT

Agricultural markets in Bihar

• 100 main market yards 
• 12Agri Export Zones
• 355 cold storage 
• 3 Food-Parks
• 407 food processing units

There are several factors that favor the agriculture sector in Bihar. The state is now uniquely positioned to utilize its rich untapped natural resources such as fertile soils and abundant water. More importantly, it can avail of the benefits of increasing stress on the food processing sector at the national level. Bihar ranks 11th of the 15 major states in terms of social and economic infrastructure. Annual Survey of Industries reveals that only about 1,500 industries are operating in the state (2003–04) or 1.13 percent of the total industries all over India. Food processing, dairy, sugar, manufacturing, and healthcare are some of the fast-growing industries in the state.

Geographical Indication of Agricultural Processing in Bihar:

The below Figures shows the statistics and Map representation of Processing Clusters in Bihar:

• Bihar is one of the largest producers of vegetables and fruits in the country, making it a suitable place for setting up units in the food processing sector. The state is one of the leading producers of fruits such as banana, mango, guava, litchi, and vegetables such as onion, tomato, potato, and eggplant in the country
• Usher Agro Limited is one of the largest basic food grain (rice and wheat) processing companies in India. The company established its rice processing mill in Buxar, Bihar in 2003
• The company's product list consists of rice, bran, wheat, and husk which are sold under the brand name of ‘Rasoi Raja’
• Sugar, the largest agro-based industry in the state, plays a prominent role in Bihar’s economy. The northern part of the state is climatically well suited for producing good quality sugarcane with minimum inputs as compared to other states
• In order to promote the sugarcane industry, the state Government grants various rebates and concessions, some of which include - VAT reduction on denatured spirit and ethanol from 12.5 to 4.0% and eradication of literate fees on liquor and ethanol
• In September 2020, Prime Minister, Mr. Narendra Modi, launched PM Matsya Sampada Yojana, e-Gopala App & several initiatives linked to studies and research in fisheries production, dairy, animal husbandry, and agriculture in Bihar. These schemes aim to provide new infrastructure, modern equipment, and new markets to fish producers and targets to double the fish exports in the next 3-4 years