Articles by Rahul Singh Devesh Roy

Technology

Bihar’s makhana potential

Bihar, the poorest among Indian States, is hardly known for success stories. However, there is one area it stands out — makhana (fox nut) production. The State accounts for 90 per cent of the country’s production of this aquatic crop, and 90 per cent of the world’s makhana comes from India. Only recently has makhana been marketed as a gluten-free wonder food (with protein, fibre, minerals and antioxidants) and sold in various forms after secondary processing. Questions yet remain: Is it done at scale, how far is it positioned relative to the potential, and does it bring about distribution of value in favour of Bihar? It seems that makhana mimics the archetype of cocoa in Africa where the African producers in Ghana and Côte d’Ivoire get only a miniscule share ($8-9 billion) of $150 billion plus a year chocolate industry. The same mechanics seem to work for makhana albeit at lower value level. Must scale up Despite being the largest producer, Bihar just does not have the scale to count as a big exporter. Existing as well as potential demand far outweighs the quality adjusted supply. Makhana may be a wonder food, but it cannot yet be a wonder income generator and poverty reducer in Bihar. As there are costs, particularly fixed costs, involved in trading, they can only be offset with scale. Unfortunately, the low volume for domestic and international trade characterises Bihar’s makhana. The scaling up is needed not only in quantity but also in quality. Quality involves, among other things, packaging and meeting food safety standards. Because of low value, until 2022makhana did not even have a code for identification as a unique nut (was clubbed with other nuts) in trade data. Now all trade, including makhana, takes place through global value chains (GVCs). Though the largest producer of raw makhana, the biggest processors and exporters are in other States like Punjab and Assam, which then export to other countries and States within India — quintessentially a GVC construct. In makhana, initial or pre-production activities are relatively low-value, highly labour intensive in a low wage economy while post-production activities command significant value and drive profitability. Bihar’s makhana may need to focus on diversifying from a popped snack status to other value-added products to cater to specific food and medicinal uses. The 2022 Geographical Indication (GI) tag in principle should change the value in the popped makhana segment itself, by bolstering exports. How price premium follows from GI tag for Bihar remains to be seen. Traditionally grown in deep ponds, production has shifted to shallow waters. The Mallah community has expertise in harvesting makhana. Other States such as Assam, UP, and Odisha plan to promote makhana alongside other water crops. The demand-supply gap is so large that increased supply from other sources will only help Bihar to ensure scale and create further demand. To get India’s exports to scale that will positively impact Bihar, other States’ exports must join in. Recent advances in trade theory explain that only productive firms or farms export. Makhana needs a major technological upgrade for this purpose as well. Bihar could benefit by expanding from pond- to field-based cultivation, favouring transplanting over podcasting and adopting improved varieties. Field systems shorten crop durations and ensure consistent quality. In makhana processing, a technology upgrade will be needed. Well-processed makhana pops are larger and weigh less — an indication of good quality. Addressing non-price attributes is another major factor through independent certification. This involves popularisation of certified makhana through promotion of food safety, quality and environmental attributes. Singh is Assistant Professor of Economics at Ahmedabad University and Roy is a Senior Research Fellow at the International Food Policy Research Institute Published on November 7, 2025