In recent years, makhana—once a humble, locally consumed snack—has gained global recognition as a superfood, particularly among fitness enthusiasts. This surge in popularity has prompted the Indian government to invest in marketing and infrastructure to harness makhana’s commercial potential.
February, 2025: Makhana, also known as fox nuts or lotus seeds, is derived from the Euryale Fox plant, which thrives in water bodies across India and China. The seeds are harvested, dried, and roasted to create a light, crunchy, and highly nutritious snack. Makhana, which is packed with 18 amino acids, rich in protein, fiber, antioxidants, and essential minerals like calcium and magnesium, serves as a healthy alternative to processed snacks. Its significance extends beyond nutrition, as it has long been valued in Ayurveda for its anti-aging, digestive, and heart-friendly properties.
Government Initiatives and Industry Developments
Recognizing makhana’s economic potential, Finance Minister Nirmala Sitharaman announced the establishment of the Makhana Board in Bihar as part of the Union Budget 2025. The board will focus on improving processing techniques, adding value to the product, and ensuring farmers benefit from relevant government schemes. Additionally, it will facilitate access to trade-related technologies and enhance market competitiveness.
Furthering these efforts, the Centre has proposed new tariff classifications for makhana and rice under the Customs Tariff Act, 1975, set to take effect on May 1, 2025. This move aims to streamline product categorization based on processing methods and varieties, thereby simplifying trade and taxation structures.
Moreover, “Makhana Vikas Yojana” launched by the Department of Agriculture, Bihar, is designed to boost the cultivation and productivity of Makhana in 10 designated districts of Bihar. It focuses on offering training to farmers and providing grants for traditional equipment used in Makhana cultivation and processing. The scheme is to be implemented in 10 districts of the state.
The industry’s formal recognition was bolstered when Mithila Makhana received a Geographical Indication (GI) tag on August 16, 2022. Registered under the Mithilanchal Makhana Utpadak Sangh, this designation highlights the product’s unique regional identity, reinforcing its authenticity and market value.
Bihar: The Heart of India’s Makhana Production
India ranks seventh globally in food exports, with significant potential for growth. The government aims to increase value-added food exports by 40% within the next 3–4 years. Bihar, responsible for nearly 90% of India’s makhana production, plays a crucial role in achieving this target. However, challenges such as low productivity, inadequate food processing units, and inefficient marketing chains have hindered the state from capitalizing on the rising domestic and international demand.
A senior bureaucrat in Bihar noted, “Bihar primarily sells raw makhana to food processing units (FPUs) outside the state at low prices. These FPUs add value through flavoring and packaging, ultimately commanding higher market prices.” This underscores the need for localized value addition and infrastructure development.
Market Potential and Export Growth
The global makhana market, valued at $43.56 million in 2023, is projected to reach $100 million by 2033, according to Spherical Insights. In addition to being consumed as a snack, makhana is increasingly used in desserts like kheer and savory dishes. Brands such as Farmley and Mr. Makhana have tapped into this demand by offering flavored makhana products, with the flavored makhana market alone estimated at ₹150 crore annually.
The export potential is particularly striking. According to The Hindu, international wholesale prices for makhana have surged from ₹1,000 per kg a decade ago to ₹8,000 per kg today. However, despite its growing appeal, Bihar’s makhana industry has struggled to meet global quality standards. A 2020 Indian Council of Agricultural Research (ICAR) report estimates that Bihar cultivates makhana across 15,000 hectares, producing nearly 10,000 tonnes annually, primarily in Darbhanga, Madhubani, Purnea, Katihar, Araria, Kishanganj, Saharsa, Supaul, and Sitamarhi.
Makhana is also produced in Assam, Manipur, West Bengal, Tripura, and Odisha, as well as in Nepal, Bangladesh, China, Japan, and Korea. However, Bihar’s unorganized market structure, along with a long chain of intermediaries, results in farmers receiving disproportionately low prices compared to commercial market rates. “Neither the farmer nor the state earns what they truly should,” the bureaucrat added, as reported by Indian Express.
Challenges in Bihar’s Makhana Industry
Despite its immense potential, Bihar’s makhana industry faces several key obstacles:
- Low Productivity: Traditional farming methods yield 1.7–1.9 tonnes per hectare, whereas modern techniques could achieve 3–3.5 tonnes per hectare. Limited access to training and best agricultural practices further hampers productivity.
- Lack of Processing Infrastructure: Due to the scarcity of local processing units, raw makhana is sold at lower prices to out-of-state companies, reducing earnings for Bihar’s farmers.
- Export Barriers: Only 2% of Bihar’s makhana meets international quality standards, restricting its global reach. Many small farmers struggle to afford the necessary food safety and hygiene certifications required for export.
- Market Inefficiencies: A fragmented supply chain allows intermediaries to dominate, leading to lower profits for farmers. Establishing a well-structured marketing system could ensure fair pricing and broader market access.
- Limited Awareness: Many makhana farmers lack knowledge about government schemes, financial incentives, and modern farming techniques that could enhance their productivity and profitability.
Future Prospects: A Path Forward
The establishment of the Makhana Board is expected to drive much-needed reforms in Bihar’s makhana sector. Key initiatives will likely include:
- Farmer Training Programs: Providing export-focused training and guidance on advanced agricultural techniques.
- Infrastructure Development: Encouraging investments in food processing units and establishing export-oriented facilities.
- R&D and Innovation: Introducing agri-tech solutions such as improved seed varieties, automated harvesting methods, and sustainable farming practices.
- Global Market Expansion: Partnering with foreign retail and FMCG brands to promote private-label makhana products in international supermarkets and e-commerce platforms.
- Public-Private Partnerships: Strengthening supply chain logistics, developing cold storage solutions, and implementing direct farmer procurement models.
From an economic perspective, enhancing makhana processing and marketing aligns with India’s broader superfood export strategy, which includes products like moringa, Jamun (Indian blackberry), amla, ashwagandha, buckwheat, flax seeds, forest honey, and millets like ragi.
With targeted investment and strategic reforms, Bihar has the opportunity to transform its makhana industry, benefiting both farmers and the state’s economy while reinforcing India’s position as a global superfood leader.
FAQs on Makhana
What is Makhana?
Makhana, also known as fox nuts or lotus seeds, is a nutritious snack derived from the Euryale Fox plant, commonly found in water bodies across India and China. It is packed with protein, fiber, antioxidants, and essential minerals.
What are the health benefits of Makhana?
Makhana is rich in 18 amino acids, protein, fiber, and minerals like calcium and magnesium. It has anti-aging, digestive, and heart-friendly properties, making it a healthy alternative to processed snacks.
What government initiatives are supporting Makhana production in India?
The Indian government has launched several initiatives, including the Makhana Board in Bihar to improve processing, and the Makhana Vikas Yojana to boost cultivation in Bihar. Additionally, new tariff classifications for Makhana will streamline trade and taxation.
Where is Makhana primarily produced?
Bihar produces nearly 90% of India’s Makhana, with other regions like Assam, West Bengal, and Odisha also contributing. However, Bihar remains the heart of Makhana cultivation.
What challenges does Bihar’s Makhana industry face?
Key challenges include low productivity, a lack of local processing infrastructure, market inefficiencies, and limited awareness among farmers about government schemes and modern farming techniques.
What is the global market potential for Makhana?
The global makhana market, valued at $43.56 million in 2023, is projected to grow to $100 million by 2033. Exports have increased, with wholesale prices for Makhana rising significantly in recent years.
What is being done to improve Bihar’s Makhana industry?
Initiatives like farmer training programs, infrastructure development, and research on agricultural innovations are being implemented. The Makhana Board and public-private partnerships are expected to drive growth and enhance global competitiveness.
How can Makhana contribute to India’s superfood export strategy?
Makhana is part of India’s broader strategy to increase exports of superfoods like moringa, millets, and amla. By improving processing, marketing, and export infrastructure, Bihar’s Makhana industry could significantly contribute to India’s export growth.
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