The Makhana Value Chain in Bihar: An Assessment and Policy Implications
45 Pages Posted: 10 Mar 2014
Date Written: January 9, 2010
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: Suggested Citation