Introduction

The announcement by Finance Minister Smt Nirmala Sitharaman Ji to set up a Makhana Board in Bihar in the Union Budget 2025-26 is a welcome move toward strengthening the makhana industry in Bihar.  Bihar is India’s largest producer of makhana, accounting for over 90% of the country’s total output. The nutrient-rich fox nuts are widely consumed in India and even exported to other countries. However, the industry faces severe challenges in Bihar, where makhana farmers continue to rely on traditional and inefficient processing methods due to inadequate infrastructural development. The absence of MSP on makhana makes the farmers vulnerable to price volatility due to crop damage by pests and turbulent climatic conditions. The lack of proper storage facilities and processing units has further hindered the growth of the makhana industry in Bihar. The presence of a large number of intermediaries has a significant impact on farmers’ economic outcomes and market access. The industry also suffers from limited market reach, which affects its profitability and, ultimately, generates losses for the producers. Unlike other agricultural products, makhana has also seen less innovation in terms of product diversification, packaging, and branding, which has overall impacted its profitability. The proposed Makhana Board aims to address these issues by improving the production, processing, value addition, and marketing of makhana. ’ The Bihar Government, from time to time, demanded measures from the Central Government to promote makhana cultivation. The setting up of the board is, therefore, a right step in the right direction.

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