Makhana, also known as fox nut, has emerged as one of India’s most talked-about superfoods in recent years. With its rich nutritional profile and multiple health benefits, the humble seed from Bihar has earned global recognition. North Bihar has long been the centre of its production.

In fact, prolonged issues of floods in the region have inadvertently turned makhana into a blessing in disguise, as it assisted farmers recover losses and rejuvenate the local economy.

Makhana’s appeal skyrocketed after it received the Geographical Indication (GI) tag as ‘Mithila Makhana’ on April 2022, a certification that marked its uniqueness and authenticity. This recognition attracted an influx of entrepreneurs, start-ups, and traders, all eager to tap into the growing global market. The surge in demand, however, has led to a major supply-demand imbalance, pushing prices to unprecedented levels.

The production process is highly labour-intensive, with minimal mechanisation. Harvesting Makhana requires highly skilled labour, traditionally sourced from the Mallah community which constitute about 2.5 per cent of Bihar’s population. But the younger people from the Mallah community may not be interested in continuing this work.

The reliance on manual labour, combined with a lack of modernization in farming techniques, constrains production capacity and limits scalability, leading to prices soaring. At the same time, producers — largely farmers — are not reaping the benefits. There are very limited examples that farmers have received high price spread (producer’s share in consumer’s rupee) as compared to the traders.

The GI tag for Mithila Makhana, granted to 21 districts in Bihar, has undoubtedly raised the profile of this valuable commodity. However, a closer look at the figures reveals a disconnect between the GI tag and its real-world impact on the producers.

According to the GI registry, only 67 authorised users are registered under the GI tag —surprisingly, the majority of them are based in Kishanganj, while Darbhanga, Madhubani, and Sitamarhi are among the primary production centres.

For a commodity which has about 70,000 primary producers, such a small number of authorized users are not going to confer economic benefits. As a result, the benefits intended for the local community are not trickling down. Moreover, the absence of a proper traceability mechanism, like, HSN code for Makhana, further complicates efforts to maintain trust and transparency in international markets.

Policy interventions

First and foremost, the government must provide price guarantees to shield growers from market volatility.

There needs to be a concerted effort to register all genuine producers under the GI tag. The current small number of authorised users, does not reflect the actual scale of Makhana production in Bihar.

Expanding the registration process to include more genuine producers — especially from the primary production hubs like Darbhanga, Madhubani, and Sitamarhi among others will ensure that the benefits of the GI tag flow to the grassroots level and community development is taking place.

Lastly, the government must intervene to regulate the influx of market entrants to prevent the formation of monopolies or price manipulation by powerful lobbies. A balanced, fair-market approach, with active government regulation, is necessary to ensure that Makhana remains a boon for both producers and consumers.

The writer is faculty of Agribusiness at Dr. Rajendra Prasad Central Agricultural University, Bihar. Views expressed are personal