Makhana, also known as fox nuts or lotus seeds, has been an integral part of Indian culture, cuisine, and traditional medicine for centuries. In recent years, this humble seed has transitioned from a regional delicacy to a globally recognized superfood, leading to significant growth in its industry within India.

In 2024, the size of the Indian makhana market was INR 8.5 billion. According to IMARC Group's forecast, the market would increase at a compound annual growth rate (CAGR) of 9.22% from 2025 to 2033, reaching INR 19.6 billion. Some of the main reasons propelling the industry include the growing number of hotels, cafes, bakeries, and restaurants; the growing influence of food blogging channels; and people's growing knowledge of the advantages of eating healthy snacks.

This blog delves into the journey of the Makhana industry, exploring its historical roots, economic impact, health benefits, challenges, and future prospects.

Historical Background of Makhana in India

Makhana cultivation traces its origins to the eastern regions of India, particularly Bihar's Mithila region, encompassing districts like Darbhanga, Madhubani, Sitamarhi, and Purnia. Traditionally, Makhana has been cultivated in stagnant water bodies, such as ponds and wetlands, making it a labor-intensive process. Beyond its culinary uses, Makhana holds significance in religious rituals and traditional ceremonies, underscoring its cultural importance.

Geographical Distribution & Production

India stands as the largest producer of Makhana globally, with Bihar contributing approximately 90% of the country's total yield. The state however, has had difficulty taking advantage of the growing demand for this superfood around the world. The establishment of a "Makhana Board" in the Union Budget 2025 intends to address these issues by enhancing marketing, value addition, production, and processing.

Other states like Assam, West Bengal, Chhattisgarh, Manipur, and Jammu & Kashmir have also ventured into Makhana cultivation. The favorable climatic conditions and abundant water bodies in these regions provide an ideal environment for Makhana farming. Over the years, the cultivation area has expanded significantly, from approximately 13,000 hectares to 35,000 hectares across multiple states.

Economic and Employment Impact

The Makhana industry plays a pivotal role in the rural economy, especially in Bihar and the northeastern states. It provides employment opportunities to thousands of farmers and artisans involved in cultivation, processing, and marketing. Recognizing its potential, the Indian government announced the establishment of a Makhana Board in Bihar in the Union Budget 2025-26, with an initial allocation of ₹100 crore. This initiative aims to organize farmers into producer organizations, provide essential training, and enhance infrastructure for better production and marketing.

Health Benefits & Rising Demand

Makhana's nutritional profile has contributed to its rising popularity among health-conscious consumers. It is rich in essential minerals like magnesium, potassium, phosphorus, iron, and zinc. Its low-fat and high-carbohydrate composition make it a distinct alternative to other nuts, while its high protein and fiber content promote digestive health and satiety. Makhana also possesses anti-inflammatory and anti-aging properties, and its low glycemic index makes it a suitable snack for individuals managing blood sugar levels.

These health benefits have spurred demand not only domestically but also in international markets. Countries like the USA, the UK, the UAE, and Australia have emerged as key importers of Indian Makhana. The industry's valuation has reached approximately ₹3,000 crore and is projected to grow at a compound annual growth rate (CAGR) of 15-20%, potentially reaching ₹5,000-6,000 crore in the coming years.

Government Initiatives & Support for Makhana Industry

The Indian government has recognized the potential of the Makhana industry and has implemented several initiatives to support its growth:

Establishment of the Makhana Board: As mentioned earlier, the Union Budget 2025-26 announced the creation of a Makhana Board in Bihar with an initial investment of ₹100 crore. This board aims to enhance production, processing, and marketing strategies, ensuring better returns for farmers.

Research and Development: Institutions like the National Research Centre for Makhana (NRCM) in Darbhanga have been instrumental in developing high-yield Makhana varieties and introducing water-efficient farming systems. Between 2012 and 2023, NRCM trained over 3,000 farmers in advanced cultivation techniques, contributing to the expansion of Makhana cultivation areas.

Geographical Indication (GI) Tag: In 2022, 'Mithila Makhana' received the prestigious GI tag, enhancing its brand value and ensuring better market recognition.

Challenges in the Makhana Industry In India

Despite the positive trajectory, the Makhana industry in India faces several challenges:

• Labor-Intensive Cultivation: Makhana farming is labor-intensive, involving manual collection and processing of seeds from thorny leaves in muddy ponds. Only about 40% of the popped seeds are edible, and merely 2% meet export quality standards.
• Lack of Mechanization: The traditional methods of processing Makhana are time-consuming and inefficient. There's a pressing need for mechanization to improve productivity and reduce labor costs.
• Supply Chain Inefficiencies: Limited processing units and inefficient marketing chains have resulted in raw Makhana being sold at low prices to processors outside the primary cultivation states.

Future Prospects & Global Market Expansion

The future of the Makhana industry in India appears promising, with several factors contributing to its potential growth:

• Product Innovation: Companies are introducing flavored Makhana variants, such as masala, cheese, and chocolate-coated options, catering to diverse consumer preferences. Additionally, Makhana-based cereals and protein powders are entering the market, appealing to health enthusiasts.
• Export Potential: With the global shift towards healthy snacking, Indian Makhana has found markets in countries like China, Korea, Thailand, Europe, and the US. Exports are growing at an annual rate of 25%, with the flavored Makhana snack market expanding at 30%.
• Startups and Branding: Several Indian startups and established brands have entered the Makhana market in India, bringing innovation and branding expertise. Companies like Too Yumm, Open Secret, and Foxnuts have introduced premium packaged Makhana products, making them easily available in supermarkets and online marketplaces. This trend has not only increased domestic consumption but also strengthened India's position in the global snack market.

Conclusion

The growth of the Makhana industry in India reflects the country’s ability to transform a traditional food item into a high-value agricultural product. With strong government support, rising health consciousness, and growing export demand, Makhana is set to become a major contributor to India's agricultural economy.

However, addressing challenges such as labor-intensive farming, limited mechanization, and supply chain inefficiencies will be crucial for the industry’s sustained growth. By investing in modern farming techniques, encouraging entrepreneurship, and expanding global markets, India can unlock the full potential of its Makhana industry.

As Makhana in India continues to gain popularity worldwide, its journey from the ponds of Bihar to the shelves of international supermarkets serves as a testament to the power of innovation in traditional agriculture.