The Makhana Value Chain in Bihar: An Assessment and Policy Implications

45 Pages Posted: 10 Mar 2014

See all articles by Bart Minten

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium

Krishna M. Singh

Dr. Rajendra Prasad Central Agricultural University

Rajib Kumar Sutradhar

Jawaharlal Nehru University

Date Written: January 9, 2010

Abstract

As part of the National Agricultural Innovation Project (NAIP), a makhana value chain study was organized in Bihar, in collaboration between the Indian Council of Agricultural Research (ICAR) in Patna, the International Fund for Agricultural Development (IFAD) and the International Food Policy Research Institute (IFPRI), as makhana is one of the core crops that the NAIP project in Bihar is focusing on. Primary surveys were fielded with producers, traders, processors, and retailers in 2009 and 2010 on the rural-urban makhana value chain in Bihar, more in particular from the disadvantaged districts part of the NAIP project (Darbhanga) to urban consumers in Patna. The value chain as a whole. Farmers in production areas receive about 55% of the final retail price in Patna, in the case that makhana is sold loose. As there are no benefits to the farmer of the branding process, this share declines to 50% in the case of the final price for low-price branded products. In both cases, farmers are thus the agent in the value chain that gets most of the rewards, reflecting also most of his effort for the product. The retail margin is the second most important component in the final price, accounting for 19% and 22% in the final retail price of loose and low-price branded products respectively. Processors and urban wholesalers count for equal shares in the final retail price.

Keywords: Makhana cultivation, Bihar, Policy issues, India

JEL Classification: Q10, Q11, Q12, Q13

Suggested Citation

Minten, Bart and Singh, Krishna M. and Sutradhar, Rajib Kumar, The Makhana Value Chain in Bihar: An Assessment and Policy Implications (January 9, 2010). Available at SSRN: https://ssrn.com/abstract=2406538 or http://dx.doi.org/10.2139/ssrn.2406538

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Krishna M. Singh (Contact Author)

Dr. Rajendra Prasad Central Agricultural University ( email )

Pusa
Samastipur
Pusa-Samastipur, Bihar, Bihar 848125
India
+91-9431060157 (Phone)
+91-6274-240251 (Fax)

HOME PAGE: http://www.rpcau.ac.in/

Rajib Kumar Sutradhar

Jawaharlal Nehru University ( email )

Vasant Vihar
Jawaharlal Nehru University
New Delhi, DE Delhi 110067
India

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