The union budget 2025 has accentuated measures to boost agricultural growth and foster rural prosperity. As part of this, finance minister Nirmala Sitharaman proposed the establishment of a Makhana Board, offering renewed hope for stakeholders involved in the cultivation and other stages of the makhana production process.

Last decade has been exceptionally favourable for makhana (foxnut) cultivators as its demand is spreading worldwide due to its nutritional value and the health benefits. While India supplies around 85% of the world's makhana, China and Pakistan are also increasing their share of global production of foxnut. There is urgent need to establish a formalized system to foster the growth of the makhana industry, which has the potential to drive Bihar's economic growth – the state contributes nearly 90 percent of the domestic makhana production. Makhana farming showcases the perfect example of sustainable model for global agriculture and biodiversity conservation.

Economic aspect
The budget allocation for proposed Makhana Board is of Rs. 100 crore and focus would be on farmers training, development of export infrastructure, improve production and processing, improve marketing channels and exploit the world market opportunity through promotion. Since makhana farming is a complex process which requires a lot of physical effort and timely support from the market, it will be a challenging task for the board to strike a balance between the stakeholders.

The size of the makhana market was around Rs 7.8 billion in 2023 and it has been forecast that market will grow by 9.7% CAGR in the period of 2024-2032. There are multiple FPOs (farmer producer organizations) and SHGs (self-help groups) involved in the supply chain of makhana, yet it has been observed that they are failing to achieve their desired result due to social and economic issues prevailing in the market.

The mallah (fishermen) community has limited land holdings, yet their role in the production process, which involves labour-intensive tasks, is essential. Women in this community play a key role in the delicate process of makhana popping, which determines the size and final price of the product. The board holds a crucial responsibility in ensuring the economic upliftment of this community for their socio-economic advancement.

Today, nearly 10 lakh families in Bihar are involved in the makhana industry, and with proper coordination between Krishi Vigyan Kendra (KVK), the district horticulture office (DHO), the Makhana Board, and NABARD, this industry has the potential to create employment for an additional 5 lakh families in the near future. The United States, Canada, and Australia are the top three destination countries for Makhana exports, mainly due to consumer demand for healthy snacks and growing awareness in these regions. Increasing health consciousness, the expansion of hotels, cafes and restaurants, along with the influence of food vlogging, are expected to drive demand both in the domestic market and globally.

Legal aspect
At present, there is limited information about the constitution and functions of the Makhana Board. It is also not clear which ministry of the government will oversee it. The government must exercise caution in determining the number of board members, forming the executive council, and deciding on the tenure of its members. It's crucial to take all stakeholders' interests into account, especially since price realization tends to be skewed towards the end of the supply chain, which could potentially discourage farm gate stakeholders.

Health aspect and nutritional value
It was reported that cardiovascular diseases are the leading cause of death and disability not only in the developing countries but at the global scale too. Cardiovascular diseases (CVDs) are responsible for 31.8% of all the mortality and 14.7% of disability globally in 2017. In contrast, India’s statistics show that 26.6% of total mortality was due to CVD and 13.6% of total disability due to CVD in 2017.

According to the World health Organization (WHO) 2017 estimates, nearly 77 million people over the age of 18 are living with type-2 diabetes, and 25 million are in the prediabetic range, in India alone. Since the consumption of makhana have several health benefits – it is rich in nutrients, has higher antioxidants, supports weight loss, and due to the high magnesium content, it is useful for the patients with high blood sugar levels and heart problem. Therefore, we can combat the serious health issue if more people incorporate it into their diet, as it has a low glycaemic index, high fibre content, low calories and is rich in potassium. Additionally, it can aid in combating the effects of aging. It’s also worth noting that Makhana can be used in Ayurvedic treatments to reduce fatigue.

Opportunities and challenges
There is a vast, untapped market for makhana, and the proposed formation of the Makhana Board must focus on promoting both its health benefits and sustainability model, which can also support biodiversity. Bihar can expand its production area through both traditional and modern farming methods, allowing farmers to reduce their reliance on rice cultivation. To meet the growing demand, the sector faces several challenges, including the labour-intensive cultivation process, climate dependency, lack of modern farming techniques, market and pricing instability, limited awareness and promotion, GI-tag benefits, technological advancements, export potential, restricted access to credit for farmers, inadequate electricity supply, subsidies, and the health of workers involved in painstaking tasks.

As Bihar progresses on its industrial development journey, it is crucial for the state to remain proactive in planning infrastructure, addressing climate change, improving labour skills, enhancing wages, tackling health issues, and investing in the productive sectors. The formation of the Makhana Board by the central government is a positive step, but its success depends on unbiased functioning and impartial political engagement. For the makhana industry to thrive, the state of Bihar must prioritize the development of proper warehousing facilities to ensure year-round availability and improve the supply chain efficiency for its optimum. Therefore, the board needs to adopt a bottom-up approach to achieve the desired outcomes.

Rahul Kumar is a research scholar at Gokhale Institute of Politics and Economics and Dr. Barun Kumar Thakur is associate professor at FLAME University, Pune. Views expressed are personal.