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Union Budget Establishments of Makhana Board in Bihar
Context:
The Union Budget 2025 has announced the creation of a Makhana Board in Bihar with the aim of enhancing production, processing, value addition, and marketing of makhana. The government will provide training and hand-holding support to farmers while ensuring their access to various government schemes related to agriculture and food processing.Understanding Makhana: A Superfood with Global Demand
- Scientific Name: Euryale ferox (Fox Nut / Gorgon Nut)
- Cultivation Regions: Grown in freshwater bodies across South and East Asia.
- 2022: Mithila Makhana GI Tag
- Geographical Indication (GI) certification ensures exclusive recognition for Bihar’s makhana.
- Traditional and Cultural Significance:
- An integral part of Hindu rituals and fasting traditions.
- Considered a healthy snack, rich in protein, fibre, and antioxidants.
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Global Market Expansion:
- Market Valuation (2023): $43.56 million.
- Projected Growth (2033): $100 million, with a CAGR of 8.31%.
- Increased demand due to health-conscious consumers and global wellness trends.
Makhana Production in and Around Bihar
- Bihar produces 90% of India’s makhana.
- Major production districts: Darbhanga, Madhubani, Purnea, Katihar, Saharsa, Supaul, Araria, Kishanganj, Sitamarhi.
- Other cultivation regions: Assam, Manipur, West Bengal, Tripura, Odisha.
- Also grown in Nepal, Bangladesh, China, Japan, Korea.
Global Makhana Market and Its Potential
- Growing Global Popularity:
- Recognised as a superfood.
- Increasing demand from health-conscious consumers.
- Expanding Export Opportunities:
- Rising consumption in Western countries.
- Need for better supply chains and branding.
Challenges Leading to the Creation of the Makhana Board
- Bihar’s Limited Role in Makhana’s Commercial Success:
- Despite producing 90% of India’s makhana, Bihar lags in marketing and export.
- Punjab and Assam are the largest exporters despite Punjab not growing makhana.
- Production Challenges:
- Labour-intensive process: Farmers manually dive into ponds to collect seeds.
- Low productivity: Traditional methods yield 1.7-1.9 tonnes/hectare, while HYVs can yield 3-3.5 tonnes/hectare.
- Farmers are reluctant to adopt new high-yield varieties (HYVs).
- Lack of Processing and Export Infrastructure:
- Bihar has no major food processing industry.
- No cargo-holding airports to facilitate direct exports.
- Farmers sell makhana as raw material at low prices to processing units outside Bihar.
- Market Challenges:
- Bihar’s market is not well-organised.
- A long chain of intermediaries reduces farmers’ earnings.
Functions and Role of the Makhana Board
- Infrastructure Development: Creating food processing units (FPUs) and storage facilities.
- Market Expansion: Developing a strong marketing and export network.
- Skill Development: Training farmers in advanced techniques.
- Financial Support: Helping farmers access credit and subsidies.
- Technology Introduction: Encouraging high-yield variety (HYV) adoption and mechanisation.
- Policy Implementation: Ensuring that farmers benefit from government schemes.
- Export Facilitation: Developing export infrastructure to connect Bihar to international markets.
Impact of the Decision on Bihar
- Economic Growth and Revenue Generation:
- Development of food processing units to increase value addition.
- Direct exports will increase profits for farmers.
- Employment Generation:
- Makhana industry to create jobs in farming, processing, packaging, and logistics.
- Empowerment of the Mallah Community:
- Mallahs (fishermen and boatmen) are the primary cultivators of makhana.
- Recognising their contribution ensures economic upliftment.
- Increased income and job creation in the labour-intensive sector.
- Boost to Agricultural Sector:
- Introduction of better seeds and mechanisation.
- Enhanced training and productivity.