Bihar’s Makhana Production – Scaling Up for Global Markets

Bihar leads India and the world in makhana (fox nut) production. The state produces 90 per cent of India’s makhana and India supplies 90 per cent of the global market. Recently, makhana gained attention as a gluten-free superfood rich in protein, fibre, minerals and antioxidants. However, despite its potential, Bihar’s makhana industry faces challenges in scaling up production, improving quality, and capturing higher value in trade.

Current Status of Makhana Production

Bihar remains the largest producer of raw makhana. Traditionally grown in deep ponds, cultivation is shifting to shallow waters. The Mallah community plays a key role in harvesting. Other states like Assam, Uttar Pradesh and Odisha are also promoting makhana farming alongside other aquatic crops. Despite Bihar’s dominance, the state lacks the scale and quality standards to emerge as a major exporter.

Challenges in Scaling and Value Addition

Makhana production in Bihar is highly labour-intensive with low wages. Pre-production involves low value but post-production processing adds value. Currently, most processing and exporting happen outside Bihar in states like Punjab and Assam. Bihar’s makhana is mostly sold as a popped snack, limiting its market potential. Scaling up requires increasing quantity and improving quality through better packaging and food safety compliance.

Role of Geographical Indication and Market Potential

In 2022, Bihar’s makhana received a Geographical Indication (GI) tag. This recognition can enhance the product’s value and boost exports. The GI tag may help Bihar secure a price premium in international markets. However, the extent of this benefit is yet to be realised. Bihar must expand into value-added products targeting food and medicinal uses to fully exploit makhana’s potential.

Need for Technological and Process Upgrades

Technological improvements are essential for Bihar to compete globally. Transitioning from pond to field-based cultivation can shorten crop cycles and improve quality. Adopting transplanting methods and improved makhana varieties will enhance productivity. In processing, technology upgrades can produce larger, lighter popped makhana, indicating better quality. Independent certification for food safety and environmental standards will further improve market acceptance.

Global Value Chains and Export Dynamics

Makhana trade occurs through global value chains (GVCs). Bihar produces raw makhana, but processing and export activities are dominated by other states. For Bihar to benefit economically, exports must scale up with participation from other producing states. Productive farms and firms are the main exporters, so Bihar’s makhana sector must boost productivity and quality to enter these chains effectively.

Future Prospects and Strategic Focus

The large demand-supply gap offers growth opportunities for Bihar’s makhana sector. Increasing supply from multiple states can create economies of scale and stimulate demand. Bihar needs to focus on quality enhancement, value addition, and certification to improve income for farmers and reduce poverty. Expanding product varieties beyond traditional snacks is crucial for market diversification.

Questions for UPSC:

1. Critically discuss the role of Geographical Indications (GI) in promoting agricultural exports and protecting regional products in India.
2. Analyse the challenges and opportunities in integrating small-scale agricultural producers into global value chains in India.
3. Examine the impact of technological innovations on improving productivity and quality in Indian aquaculture and water-based crop farming.
4. Point out the socio-economic implications of promoting niche agricultural products like makhana in poverty-stricken regions such as Bihar.

Answer Hints:

1. Critically discuss the role of Geographical Indications (GI) in promoting agricultural exports and protecting regional products in India.

1. GI tags confer legal recognition and protect unique regional products from imitation, enhancing brand value.
2. They help fetch price premiums in domestic and international markets by assuring authenticity and quality.
3. GI promotes rural livelihoods by linking local producers to global demand and supporting traditional knowledge.
4. Challenges include limited awareness, enforcement issues, and uneven benefit distribution among producers.
5. Examples like Darjeeling tea and Bihar makhana show GI’s potential to boost exports and regional identity.
6. GI alone cannot guarantee market success; complementary quality control, marketing, and infrastructure are essential.

2. Analyse the challenges and opportunities in integrating small-scale agricultural producers into global value chains in India.

1. Small producers face scale constraints, low productivity, and limited access to technology and finance.
2. Quality standards, food safety compliance, and certification requirements pose barriers to market entry.
3. Global value chains offer opportunities for higher incomes, market diversification, and technology transfer.
4. Aggregation through cooperatives or producer companies can improve bargaining power and reduce transaction costs.
5. Capacity building and infrastructure development are critical for effective integration and competitiveness.
6. Policy support and inclusive supply chain design can ensure equitable value distribution among smallholders.

3. Examine the impact of technological innovations on improving productivity and quality in Indian aquaculture and water-based crop farming.

1. Technologies like field-based cultivation and transplanting reduce crop duration and enhance yield consistency.
2. Improved seed varieties and mechanized harvesting increase productivity and reduce labor intensity.
3. Processing innovations improve product quality, shelf life, and marketability (e.g., better popping technology for makhana).
4. Adoption of food safety and environmental certifications helps meet export standards and consumer expectations.
5. Technology reduces post-harvest losses and adds value, enabling farmers to capture higher prices.
6. Challenges include cost of technology, knowledge gaps, and need for extension services.

4. Point out the socio-economic implications of promoting niche agricultural products like makhana in poverty-stricken regions such as Bihar.

1. Promotion creates employment opportunities, especially for marginalized communities like the Mallah community.
2. Value addition and export potential can increase farmer incomes and contribute to poverty reduction.
3. Enhances regional identity and pride through recognition like GI tags.
4. Risk of unequal benefit distribution if processing and export remain outside the producing region.
5. Scaling up requires investment in infrastructure, quality control, and market linkages to be sustainable.
6. Encourages diversification of rural economies and reduces dependence on traditional crops.