Makhana prices surge 32% post-budget amid rising global & domestic demand

Prices of makhana or fox nuts surged by nearly 32% in the last 10 days driven by strong interest from domestic and global buyers, traders and suppliers said. Prices rose to ₹1,250 per kg from ₹950 per kg in January.

The upswing in demand and popularity follows finance minister Nirmala Sitharaman's focus on makhana in the February 1 budget, including announcing the setting up a Makhana Board in Bihar, which contributes more than 90% of India's makhana cultivation. The board will be tasked with increasing production and marketing of the edible seed.

Since the budget, enquiries have increased while orders have been placed by customers in the UK, Singapore, Sri Lanka and South Africa. Low-consumption domestic markets like the South, Maharashtra and Gujarat are also reporting an uptick in demand, traders said.

"We have just clinched a deal with a buyer in Singapore for roasted makhana of 900 kg. The recent surge in demand has also pushed up prices of the product," said P Kumar, spokesperson of Madhubani Makhana, a packer and wholesaler of makhana in Bihar. "Post-budget, we are seeing that noise is being created about makhana as the finance minister has given a special focus on makhana in the budget."

The sudden surge of demand and interest has lifted hopes among Bihar's makhana trade that 2025 will be the year of the edible seed similar to the dominance of millets in 2023 and 2024 were of millets. Ten districts of Bihar produce more than 90% of India's annual makhana production of 10,000 tonnes.

Prateek Bhagchandka, cofounder and CEO of makhana packager MOM-Meal of the Moment, said over the past week, the company got inquiries from global clients eager to learn more about makhana. "We have received a strong lead from the UK. The budget has put a lot more focus on makhana, amplified by international news outlets and percolated into social conversations among Indians living abroad. Thus, we see more people either discovering or rediscovering makhana," he said.

Traders noted that the next farming season of makhana falls in July, leaving no scope for any price control till the time. However, executives feel prices will stabilise in the mid-to-long term with an expected increase in production matching the growing demand.

To be sure, makhana prices have been surging annually for the past 4-5 years due to growing interest from domestic buyers and several startups packaging it as a healthy snack sold mostly through modern retail and quick commerce.

Makhana secured the geographical indication tag in 2022. This was followed by strong demand in 2023 as consumers began shifting to healthier foods after the pandemic, pushing prices higher.

Abhinav Jha, founder of Samastipur, Bihar-based Makhana supplier TirhutWala, said earlier, the company was getting about 50 calls per day which have risen threefold since the budget. "We have got orders from a place like Eswatini in South Africa. Sri Lanka too is placing orders," he said.

"With the finance minister giving special focus on the sector, it will become more organised, and many new entrepreneurs will enter the sector," said Tarun Satsangi, associate director - commodity research at Univest, a commodity broking firm.