Boost for Bihar: FM Sitharaman unveils Makhana Board in Budget 2025

Makhana, also known as fox nut, has gained immense popularity in recent years as a nutrient-rich “superfood,” widely consumed by fitness enthusiasts.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget on Saturday, announced the establishment of a Makhana Board in Bihar in a significant move for the state's economy. The board aims to enhance the production, processing, value addition, and marketing of makhana, providing training and support to farmers while ensuring their access to government schemes.

The Centre has proposed the creation of new tariff lines for makhana products and rice, categorising them based on process and variety. These changes, introduced under the Customs Tariff Act, 1975, will come into effect from May 1.

Makhana, also known as fox nut, has gained immense popularity in recent years as a nutrient-rich “superfood,” widely consumed by fitness enthusiasts. Recognising its market potential, the government has been focusing on its commercial viability. In 2022, ‘Mithila Makhana’ received the Geographical Indication (GI) tag, certifying its unique regional characteristics, similar to Darjeeling tea or Mysore sandalwood.

Primarily cultivated in nine districts of northern and eastern Bihar—Darbhanga, Madhubani, Purnea, Katihar, Saharsa, Supaul, Araria, Kishanganj, and Sitamarhi—makhana farming in the region contributes to nearly 90% of India’s production. However, despite its dominance, Bihar has struggled to capitalize on Makhana’s growing market due to a lack of food processing infrastructure and export facilities. The state also does not have an airport with a cargo terminal, hindering direct exports.

Traditional makhana farming is labour-intensive and low-yield, with farmers manually harvesting seeds from water bodies. Productivity is further affected by the slow adoption of high-yield varieties (HYVs) such as Swarna Vaidehi and Sabour Makhana-1, which can produce 3-3.5 tonnes per hectare compared to 1.7-1.9 tonnes per hectare from traditional methods. The newly established Makhana Board, with an allocated budget of Rs 100 crore, will focus on training farmers and making them export-ready, promoting investment in food processing, as well as facilitating the development of export infrastructure.

The announcement is also seen as a strategic move ahead of the Bihar Assembly elections. Chief Minister Nitish Kumar has faced criticism for the state’s limited economic growth beyond infrastructure development. Unemployment and migration were key concerns during the recent Lok Sabha elections, and this initiative is expected to address some of these challenges.

The move also holds significance for the Mallah community, which is heavily involved in makhana farming. Although forming only 2.6 percent of Bihar’s population, the community’s concentration in North Bihar gives them a significant electoral influence, with a potential 6 percent vote share in certain constituencies. Historically aligned with social justice parties, the community has been courted by multiple political parties in recent elections due to their ability to mobilise other lower castes.

At present, nearly 10 lakh families in Bihar are engaged in makhana cultivation and processing. The establishment of the Makhana Board is expected to boost production, improve export prospects, and create employment opportunities, making it a crucial policy move both economically and politically.