Source: The post “Bihar’s Makhana Potential” has been created, based on “Bihar’s Makhana Potential” published in “The Hindu Businessline” on 10 November 2025. Bihar’s Makhana Potential.
UPSC Syllabus: GS Paper 3 – Indian Economy
Introduction: Bihar is the largest producer of makhana (fox nut) in India, accounting for about 90 percent of national production and nearly 90 percent of the global supply. Despite this dominance, Bihar has not been able to establish itself as a major exporter due to structural and technological limitations. Makhana is now gaining recognition as a gluten-free, protein-rich superfood with growing global demand, presenting Bihar with a major opportunity for economic development.
Present Status of Makhana Production in Bihar
- Makhana is traditionally cultivated in shallow ponds by the Mallah community using labour-intensive methods.
- The production system remains largely informal and small-scale, lacking standardisation and mechanisation.
- Most value-added processing and export operations are handled by other states such as Punjab and Assam.
Major Challenges
- Lack of scale: Bihar’s makhana sector suffers from low production volumes, making it difficult to achieve economies of scale necessary for large-scale export.
- Low value addition: The initial stages of production are low-value and labour-intensive, while higher-value post-production activities are concentrated outside Bihar.
- Quality issues: Until 2022, makhana did not have a separate identification code in trade data, which limited its recognition as a unique product.
- Certification gap: There is inadequate certification for food safety, quality, and environmental standards, making it less competitive internationally.
- Technological backwardness: Traditional pond-based systems result in longer crop durations and inconsistent quality. Modern field-based systems and improved varieties have not been adopted widely.
- High fixed costs: Small-scale production leads to higher costs that can only be offset by scaling up cultivation and processing.
Opportunities and the Way Forward
- Scaling up production: Bihar needs to expand makhana cultivation from pond-based to field-based systems, which shorten crop cycles and improve consistency.
- Technological upgradation: Investment in advanced processing technology can ensure better-quality pops that are larger, lighter, and suitable for premium markets.
- Diversification: The state should promote the development of diversified makhana-based products for health, food, and medicinal uses.
- Certification and branding: The 2022 Geographical Indication (GI) tag can be leveraged to build brand recognition and fetch higher export prices.
- Institutional support: The government should facilitate farmer cooperatives, public–private partnerships, and targeted financial assistance to encourage investment in processing and export infrastructure.
- Quality assurance: Independent certification systems should be encouraged to promote food safety, sustainability, and environmental compliance.
- Skill development: Training programs for farmers and processors can help in adopting modern methods and achieving higher productivity.
Conclusion Bihar’s makhana industry mirrors the situation of cocoa production in Africa, where raw producers earn little despite global demand. To realize its full potential, Bihar must focus on scaling up, modernizing production, ensuring quality certification, and strengthening value chains within the state.With coordinated policy support, technological innovation, and effective branding, makhana can become a driver of rural income, employment, and global competitiveness for Bihar.
Question: Bihar’s makhana industry holds immense potential but faces challenges in scaling and certification. Discuss.
