How the Makhana Board announced in the Budget will help Bihar farmers?

The formation of the Makhana Board is not just an economic move; it also carries significant political weight, especially ahead of Bihar’s upcoming legislative elections.
Bihar produces 90% of India's makhana.
Bihar produces 90% of India's makhana.(Photo | Pexels)
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In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced the establishment of a Makhana Board in Bihar, aimed at boosting the production, processing, and marketing of the state's most iconic agricultural product makhana, also known as fox nuts. This move comes at a crucial time for Bihar, which produces about 90% of India's makhana, yet struggles to fully capitalise on its potential due to issues such as low productivity, lack of food processing infrastructure, and inefficient marketing systems.

A Boost to Bihar’s Makhana Industry

Makhana is increasingly recognised globally as a superfood, valued for its rich nutritional properties and health benefits. However, despite the growing demand for this “healthy snack,” Bihar, which grows the bulk of the crop, has faced significant challenges in making the most of its position as the leading producer.

The Makhana Board, with an allocated budget of Rs 100 crore, is set to address these challenges in several key ways:

  • Improved Production and Productivity: The board will support farmers in adopting high-yield seed varieties and modern farming techniques to increase the productivity of makhana crops. Currently, traditional farming methods limit yields, with farmers achieving just 1.7–1.9 tonnes per hectare, far below the potential of 3–3.5 tonnes per hectare using better seeds.

  • Food Processing and Value Addition: Bihar has long lacked adequate food processing infrastructure, which has led to raw makhana being sold at low prices to food processing units outside the state. The Makhana Board aims to develop local food processing facilities that will add value to the raw product, improving the price farmers receive.

  • Training and Market Support: The board will provide farmers with essential training and resources, focusing on making them export-oriented and helping them benefit from government schemes. It will also create a more organised market for makhana in Bihar, reducing the number of intermediaries and ensuring farmers get better prices.

Political Significance Ahead of Elections

The formation of the Makhana Board is not just an economic move; it also carries significant political weight, especially ahead of Bihar’s upcoming legislative elections. The farming and harvesting of makhana is primarily done by the Mallah community, a group that constitutes around 2.6% of the state's population and has long been one of the most impoverished communities in Bihar. This announcement directly targets this community, offering a much-needed economic boost.

The Mallah community has been politically significant in Bihar, especially following the 2020 assembly elections when the Vikassheel Insaan Party (VIP), which represents this community, allied with the Bharatiya Janata Party (BJP). However, the party later shifted alliances to join the Rashtriya Janata Dal (RJD) in the opposition bloc. The Makhana Board announcement, therefore, can also be seen as a direct attempt to win the support of the Mallah community, offering them tangible benefits in the form of better market conditions and job creation.

Infrastructure Developments to Support Exports

In addition to the Makhana Board, several infrastructural improvements have been proposed to support Bihar’s agricultural and food processing sectors. The expansion of Patna airport, along with the development of new airports in Purnea and Darbhanga, will provide the necessary cargo facilities for exporting makhana. These infrastructure upgrades, coupled with a national focus on improving the food processing industry through initiatives like the National Institute of Food Technology, Entrepreneurship and Management in Bihar, will help boost Bihar's position in the global market for makhana.

The announcement also includes support for the Western Kosi Canal ERM project in the Mithilanchal region, which will benefit farmers across 50,000 hectares of land. This project promises to improve irrigation and ensure more stable agricultural conditions for Bihar’s farmers, further enhancing the state’s agricultural output.

The formation of the Makhana Board in Bihar is a strategic initiative that addresses the state’s long-standing challenges in makhana cultivation and processing. By focusing on improving productivity, processing, and marketing, the Board is set to enhance the economic prospects of Bihar’s farmers, particularly those from the Mallah community who play a central role in the production of makhana.

Politically, it also sends a strong message of support for this crucial community ahead of the assembly elections. If successfully implemented, the Makhana Board has the potential to transform Bihar into a global leader in the makhana industry, benefiting both the state’s economy and its farmers.

However, it remains to be seen how the Centre and the State governments will follow through on their promises. Many election pledges lose their luster once the polls are over. Since the Centre has yet to spell out the financial plan for executing the project — setting up of the Board, establishing industry and marketing infrastructure and creating the necessary implementation procedures, in a practical and sustainable way, it could become just another on-the-paper dream for the struggling farmers of Bihar.

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