India’s Makhana Revolution: Opportunity for Bihar?

From Bihar's Marshes to Global Snack Tables

India commands 90 % of global makhana production, with Bihar's Mithila region alone contributing 80–90 %. India’s domestic makhana market reached USD 8.5 billion in 2024 and is projected to hit USD 19.6 billion by 2032, while makhana exports rose ~27 % in FY2024-25, reaching USD 30.5 million with top destinations including the USA, UAE, UK, and Australia. Globally, the fox nut market is anticipated to expand from ~USD 46.6 million in 2024 to ~USD 98 million by 2032.

The Finance Minister announced a new Makhana Board in the 2025–26 Union Budget to boost processing, branding, and farmer incomes.

What is Special about Makhana?

Health & clean label	Makhana is gluten-free, low in fat, rich in protein, minerals and antioxidants, and often grown with minimal chemical inputs. This has made it a prized choice among health-conscious consumers.
Government Support	The GI tag for “Mithila Makhana” has added brand leverage. The proposed Makhana Board and subsidies for processing and export linkages aim to upgrade the value chain.
Benefit to Farmers	Farmers who switched to cultivating makhana variants have reported incomes of ~₹86,000 per hectare over six months compared to ~₹25,000 per hectare from crops prone to flood damage. Some 50,000+ farmers reportedly derive incomes ~₹2.25 lakh annually in this sector.
Value Chain	A processing unit with roasters, graders, and packaging can be launch with modest capital (~₹5 lakh) and expect to earn high margins. To support this, equipment makers, branding consultants, and e-commerce channels are emerging.

What Are the Challenges?

Fragmented Supply Chain	Farmers still sell raw makhana locally, as they lack processing and cold-storage infrastructure. They thus get only a fraction of final value.
Climate Risk	Makhana depends heavily on pond and wetland water levels and stable rainfall.
Low Productivity	Only ~40 % of harvested seeds are edible, and just ~2% meet export standards.
Labour Intensity	Makhana is harvested manually from muddy ponds, which is time-consuming and labour intensive. Labour accounts for ~36% of costs.
Vulnerability Factors	Many cultivators lack direct market access or credit from financial institutions, which makes them vulnerable to middlemen. Currently, makhana cultivation is not supported by a Minimum Support Price (MSP) or crop insurance.

Investment Strategy

India's makhana story is set for a growth phase, wth investments across the value-chain. If you plan to invest, here are some options to balanceyour basket:

Processing & equipment firms	Companies and manufacturers offering roasting, grading, packaging machines.
Export & branded players	Companies transforming makhana into consumer snack forms.
Tech & agri innovation	Startups and companies involved in mechanization, seed research, and pond management solutions.
Farmer alliances / FPOs	Look for those with strong governance and backward integration.
Diversification and Hedging	Diversify your investment across geographies (not just Bihar), and hedge for climate risk.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice.

All investments are subject to market risks, so carefully read all documents related to any scheme before investing.

Keywords: India makhana industry, fox nut investment, Euryale ferox market, Mithila Makhana, makhana export growth, superfood agriculture India, makhana processing business, makhana climate risk, makhana supply chain, branded makhana snacks