Budget 2025 Allocates Rs 100 Crore For Makhana Board In Bihar. Know How It Will Impact Poll-Bound State

Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget on 1st February 2025, announced the establishment of a 'Makhana Board' in Bihar.

"A Makhana Board will be established in [Bihar] to improve production, processing, value addition, and marketing of makhana... The Board will provide hand-holding and training support to makhana farmers and will also work to ensure they receive the benefits of all relevant Government schemes," Sitharaman stated.

Photo Credit: WISE

Makhana, also known as fox nut, has gained global recognition as a 'superfood', leading the government to focus on enhancing its commercial potential, reported the Indian Express.

In 2022, 'Mithila Makhana' was awarded a Geographical Indication (GI) tag, affirming its unique qualities and origins in Bihar. Despite being India's largest producer of makhana, Bihar has struggled to capitalise on its increasing demand due to low productivity, lack of food processing facilities, and inadequate marketing channels.

Makhana Production in Bihar

Bihar contributes to approximately 90% of India's makhana production, covering about 15,000 hectares and yielding nearly 10,000 tonnes annually.

The crop is cultivated mainly in nine districts of North and East Bihar, including Darbhanga, Madhubani, Purnea, and Katihar, which together account for 80% of the state's production. Smaller quantities are grown in Assam, Manipur, West Bengal, Tripura, and Odisha, as well as in Nepal, Bangladesh, China, Japan, and Korea.

Despite Bihar's dominance in makhana cultivation, the state has failed to establish a robust food processing industry and lacks export infrastructure.

As a result, Punjab and Assam have emerged as India's top makhana exporters, even though Punjab does not produce the crop. The absence of cargo-holding facilities at Bihar's airports further hinders exports.

Consequently, Bihar sells raw makhana to food processing units (FPUs) in other states at low prices, where it is processed, flavoured, and packaged for premium sales.

Challenges in Makhana Cultivation

Makhana farming in Bihar remains labour-intensive and costly. Seeds are sown in water bodies, and harvesting is done manually by divers. The subsequent processing, involving cleaning, sun-drying, roasting, and popping, is also labour-heavy.

The slow adoption of high-yield varieties such as Swarna Vaidehi and Sabour Makhana-1 has further impacted production. Traditional methods yield 1.7-1.9 tonnes per hectare, significantly lower than the 3-3.5 tonnes possible with improved seed varieties. Awareness and adoption of modern techniques are crucial to increasing productivity.

Role of the Makhana Board

According to Indian Express, Makhana Board, with an allocated budget of Rs 100 crore, aims to provide training to farmers, promote export-oriented practices, attract investment in food processing, and develop necessary infrastructure.

The Bihar government also plans to establish a food processing institute, and ongoing airport expansions in Patna, Purnea, and Darbhanga are expected to include cargo facilities to support exports. However, success will depend on financial commitments and policy execution by both central and state governments.

Past initiatives, such as the National Research Centre for Makhana set up in 2002 under ICAR in Bihar, have struggled due to staffing shortages and lack of administrative support, raising concerns about the effectiveness of the new Board.

Political Implications

With Bihar Assembly elections approaching, the announcement could bolster Chief Minister Nitish Kumar's economic agenda beyond infrastructure development.

Unemployment and migration were key concerns in recent elections, and strengthening the makhana industry could generate jobs.

Additionally, the initiative is expected to benefit the Mallah community, who dominate makhana farming.

Representing 2.6% of Bihar's population but with significant influence in North Bihar, the Mallahs have historically supported social justice parties but have been courted by various political groups in recent elections.

Strengthening the makhana sector could serve both economic and political interests, ensuring better livelihoods for farmers while securing electoral gains for the ruling alliance.

Currently, around 10 lakh families in Bihar are engaged in makhana cultivation and processing. If implemented effectively, the Makhana Board could significantly enhance Bihar's economic prospects and improve the livelihoods of those dependent on this traditional industry.