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Govt Announces Makhana Board in Bihar; Nikhil Kamath Sees Rs 6,000 Cr Potential in This Superfood

Makhana, or fox nut, is emerging as a globally recognized superfood, valued for its rich nutrients and health benefits. Bihar, which produces 90% of the world’s makhana, is experiencing a significant transformation in its cultivation and market expansion.

Saurabh Shukla
Zerodha co-founder Nikhil Kamath, in his post on X, also highlighted that despite its growing appeal, makhana cultivation remains labor-intensive. (Photo Source: @nikhilkamathcio/X)
Zerodha co-founder Nikhil Kamath, in his post on X, also highlighted that despite its growing appeal, makhana cultivation remains labor-intensive. (Photo Source: @nikhilkamathcio/X)

Recognizing Bihar’s dominance in Makhana production, the central government has announced the establishment of a dedicated Makhana Board to enhance production, processing, value addition, and marketing. Union Finance Minister Nirmala Sitharaman made the announcement while presenting the Union Budget on February 1, 2025, highlighting the board’s role in revolutionizing Bihar’s Makhana industry.

The newly proposed Makhana Board aims to organize farmers into Farmer Producer Organizations (FPOs), provide training and technical support, and ensure they benefit from various government schemes. By streamlining processing techniques and introducing innovative value addition methods, the initiative seeks to maximize farmer incomes and establish Bihar as the global hub for makhana.

A Makhana Board will be established in Bihar to improve production, processing, value addition, and marketing of makhana. The Board will provide handholding and training support to makhana farmers, and will also work to ensure they receive the benefits of all relevant government schemes,” said Finance Minister Nirmala Sitharaman.

Bihar’s flood-prone regions, once traditionally seen as challenging for agriculture, have turned into an advantage for makhana cultivation. With the introduction of ‘Sabour Makhana-1’, a high-yield variety, production has doubled, and the edible seed ratio has increased from 40% to 60%. This development has significantly boosted farmers’ earnings, making makhana farming more lucrative than rice cultivation.

Once a staple in Indian households, makhana has gained global recognition as a nutrient-rich superfood. It is rich in proteins, carbohydrates, phosphorus, and calcium while being low in fat and calories. Its health benefits, including improved heart health, diabetes management, and weight control, have fueled its demand in international markets.

The government has been actively promoting makhana’s commercial potential, especially after ‘Mithila Makhana’ received the Geographical Indication (GI) tag in 2022. This certification highlights the uniqueness of Bihar’s makhana and gives it a competitive edge in the global market.

Entrepreneurs have recognized the growing potential of the makhana industry. Just before the budget announcement, Zerodha co-founder Nikhil Kamath took to the social media platform X (formerly Twitter) to highlight makhana’s market potential, noting its scope to become a Rs 6,000 crore industry. He shared, “Maybe there’s room here to build a really large Indian brand that sells to the world. Personally, I’m hooked on Makhana.”

Kamath also highlighted the success of brands like Mr. Makhana, which generates Rs 50-60 lakh per month, Farmley, which secured $6.7 million in funding, and Shakti Sudha Makhana, which is on track to grow from Rs 50 crore to Rs 1,000 crore by 2024.

However, Kamath pointed out that despite its growing appeal, makhana cultivation remains labor-intensive. It involves collecting seeds from thorny leaves and muddy ponds, drying them, and manually popping them under high heat. Additionally, only about 2% of the popped seeds meet export quality standards, and just 40% of the gathered seeds are edible. With states like Assam, Manipur, West Bengal, Tripura, and Odisha showing interest in makhana production, the industry is poised for expansion.

With the establishment of the Makhana Board, the government aims to streamline processing, reduce waste, and improve quality standards for domestic and international markets.

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