In a major boost to India’s makhana industry, Finance Minister Nirmala Sitharaman announced the establishment of a Makhana Board in Bihar as part of the Union Budget 2025-26. This initiative is set to augment the production, processing, and marketing of makhana, a key crop in Bihar, in a big way. With an initial allocation of Rs 100 crore, the board aims to organise farmers into farmer producer organisations (FPOs), provide essential training, and ensure access to relevant government schemes.
Why Bihar?
Bihar dominates India’s makhana production, contributing nearly 90% of the total yield. However, low productivity, lack of food processing units, and inefficient marketing chains have until now hindered the industry’s potential. This has resulted in raw makhana being sold at low prices to processors outside the state. The Makhana Board aims to address these challenges by enhancing local infrastructure and ensuring better returns for farmers.
The Booming Makhana Market
The feather-weight Makhana, often referred to as foxnut or popped lotus seeds, is considered a powerhouse of nutrition with numerous health benefits.
According to health experts, makhana is rich in essential minerals like magnesium, potassium, phosphorus, iron, and zinc, it supports overall well-being. Its low-fat and high-carbohydrate composition make it a distinct alternative to other nuts, while its high protein and fiber content promote digestive health and satiety.
Makhana has anti-inflammatory and anti-aging properties, and its low glycemic index makes it a suitable snack for individuals managing blood sugar levels, making it a superfood that seamlessly fits into a balanced and nutritious diet.
Being an excellent choice for a healthy diet, makhana has a rising demand as healthy, organic snacks, due to which India’s makhana industry is witnessing tremendous growth. Besides rising domestic consumption, exports are also showing a good trajectory with the USA, the UK, the UAE, and Australia emerging as key buyers.
Product innovation is a key driver in this growth story as companies are launching flavoured makhana, makhana-based cereals, and even protein powders. Several startups, such as Mr. Makhana, Farmley, Shakti Sudha Makhana, and House of Makhana. are playing a key role in the expansion of the industry currently valued at Rs 3,000 crore and is projected to reach Rs 5,000-6,000 crore ($600-720 million).
According to figures available in the public domain, exports are growing at 25% annually, with the flavoured makhana snack market expanding at 30%.
The industry is growing at a CAGR of 15-20% due to increasing health consciousness and demand for value-added products. International markets like China, Korea, Thailand, Europe, and the US are driving further growth.
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Makhana Landscape: Growth, Trends, Scope, And Challenges
While Bihar’s Mithilanchal region, covering Darbhanga, Madhubani, Sitamarhi and Purnia, is the leading producer of makhana, the other makhana states are Assam, West Bengal, Chhattisgarh, Manipur, and Jammu & Kashmir.
In 2022, Mithila Makhana received the prestigious GI (Geographical Indication) tag, which enhanced its brand value. The government has introduced financial incentives to boost production and encourage start-ups in makhana cultivation and processing.
The makhana sector has seen significant growth from 2012-13 to 2021-22:
- Pop production increased from 9,360 tonnes to 23,656 tonnes.
- Seed production grew from 20,800 tonnes to 56,389 tonnes.
- The cultivation area expanded from 13,000 hectares to 35,224 hectares.
Despite increasing demand, however, makhana cultivation remains labour-intensive, which is one of the major challenges in its growth.
Farmers have to manually collect and process seeds from thorny leaves in muddy ponds. In fact, only 40% of the popped seeds are edible, and only 2% of them meet export quality standards.
All this also makes the product costly.
While the wholesale rate of makhana is Rs 350-800 a kilogram, the retail price range varies from Rs 1,000 to Rs 1,600. When it comes to flavoured packaged makhana, a 20g packet comes from Rs 60.
Nikhil Kamath, the co-founder of trading platform Zerodha, recently said on X (formerly Twitter) that he felt makhana had the potential to become a Rs 6,000-crore industry.
With the Makhana Board’s strategic initiatives, it is expected that modern processing techniques, and increasing market demand will ensure better profitability for farmers and elevate India’s standing in the international makhana trade.
