Bihar still lacks a modern food-processing ecosystem; raw makhana is often sold to traders in states like West Bengal, Delhi, and Maharashtra, where private companies manage the stages of cleaning, roasting, flavouring, and packaging. These states then market the final product under premium brands, reaping profits that should have ideally strengthened Bihar’s local economy.
Did you know that nearly 90% of the world’s makhana—better known as fox nut comes from Bihar’s ponds and wetlands? Once a humble fasting food and a staple in local rituals, this aquatic seed has today transformed into a global superfood. It is loved for its nutritional richness and light crunch. With rising global demand and skyrocketing prices, makhana has now become more than just a snack; it’s a new economic symbol redefining Bihar.
Over the past two years, the commercial market of makhana has increased significantly due to its growing appeal among health-conscious consumers worldwide. Further, the recognition of “Mithila Makhana” with a Geographical Indication (GI) tag in 2022 further enhanced its global profile and trade value. This momentum prompted the government to establish the National Makhana board in Purnea this year, a step aimed at strengthening production, branding, and exports. Yet, despite these developments, Bihar’s makhana economy remains mired in structural challenges.
Persistent Issue: Weak Food Processing Industry
Cultivation and processing of Makhana is primarily done by the Mallah community, which constitutes about 2.6% of Bihar’s population, and contributes 80-90% of India’s total Makhana production. While the demand for makhana has surged globally, from the United States and the Middle East to Japan and Europe, Bihar has failed to meet this growing export demand due to poor export infrastructure and an underdeveloped Food Processing Industry (FPI).
Processing is crucial as raw makhana is obtained in the form of black seeds, which are manually cleaned, sun-dried, and then roasted at an optimum temperature of around 250–300°C. This delicate process causes the seeds to pop open, revealing the white, edible makhana kernels. It is a specialized and labour-intensive craft, where precision in temperature and timing determines the texture, quality, and puff of the final product.
Yet Bihar’s FPI continues to struggle with problems like inadequate processing infrastructure, shortage of cold storage facilities, and lack of modern warehouses, leading to poor returns for the makhana farmers and shifting of profits from Bihar. Additionally, since the market is unorganized and dominated by intermediaries, farmers’ income remains low and unstable.
Bihar’s below-average literacy rate and lack of technical awareness also keep the traditional cultivation methods intact, limiting productivity. The limited adoption of high-yielding variety (HYV) seeds, such as Swarna Vaidehi and Sabour Makhana 1, has further reduced Bihar’s makhana production capacity to nearly half its potential, with average yields remaining at 1.7 to 1.9 tonnes per hectare compared to 3 to 3.5 tonnes achievable with HYV seeds.
Because Bihar still lacks a modern food-processing ecosystem, raw makhana is often sold to traders in states like West Bengal, Delhi, and Maharashtra, where private companies manage the stages of cleaning, roasting, flavouring, and packaging. These states then market the final product under premium brands, reaping profits that should have ideally strengthened Bihar’s local economy and supported its farmers.
In essence, without strong local industries, the state continues to lose both employment opportunities and value addition, leaving it a supplier of raw materials rather than finished goods.
Conclusion:
Bihar’s Food Processing Industry (FPI) holds the potential to become a transformative bridge between its agricultural abundance and industrial growth. However, persistent bottlenecks in infrastructure, finance, and awareness continue to slow progress. Recent government initiatives such as PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) and PMKSY (Pradhan Mantri Krishi Sinchayee Yojana), along with new investments in processing clusters and logistics, have begun to inject momentum into the sector.
If Bihar manages to process what it produces, the story of “Makhananomics” could well shift from a tale of lost potential to one of homegrown prosperity.
Kritesh Bhagat is a TRIP intern under Hamra Bihar
Mentored and Edited by Sneha Yadav
References:
- Tiwary, D., & Sengupta, A. (2025, October 24). The politics of makhananomics: Behind government’s push to boost Bihar’s makhana industry. The Indian Express. https://indianexpress.com/article/explained/explained-politics/politics-makhananomics-makhana-industry-bihar-10324343/
- Priya, A. (2025). Growth and challenges of food processing industries in Bihar: A regional analysis. In International Journal of Arts, Humanities and Social Studies (Vols. 7–7, Issue 2, pp. 103–106). https://www.socialstudiesjournal.com/archives/2025/vol7issue2/PartB/7-2-31-400.pdf?utm
- InsightfulTake | Why Bihar still struggles at the bottom of India’s development index? (n.d.). https://www.insightfultake.com/details/why-bihar-still-struggles-at-the-bottom-of-indias-development-index#google_vignette
- Connect. (2025, July 2). Karnataka Food Processing Policy. Cretum Advisory. https://cretumadvisory.com/blog/karnataka-food-processing-policy/
- Department of Industries & Commerce, Government of Punjab. (n.d.). Food Processing Industries. Retrieved November 10, 2025, from https://pbindustries.gov.in/static/manufacture_industry
- Government of Maharashtra. (n.d.). Agro & Food Processing. Retrieved November 10, 2025, from https://maitri.maharashtra.gov.in/agro-food-processing/