Have you ever thought that Makhana can make you the owner of a global business? This is the super food that everyone in the world, America, Europe, Australia is looking for today.
In this blog I will give you the complete road map of Makhana business model. The complete blueprint from starting from zero to making your brand a Makhana Empire.
We’ll cover how much potential it has. How is the government helping you? From where to pick up the goods, at what rate and of what quality. Which businesses should be started that will run in B2B and D2C and most importantly the complete process, licenses and documentation to export this Made in India product all over the world.
Why Makhana and Why Now
Today’s consumer is health conscious. He is looking for guilt-free alternatives to chips and popcorn and makhana is perfect for that. Why? Because it is a nutritional powerhouse. High in protein and fiber, naturally gluten free, low in fat and rich in minerals like magnesium, potassium, iron etc. This is a boon for those on plant-based and vegan diets. It’s not just a snack, it’s a functional food.
Market Size and Opportunity
Some reports suggest that the global health snack and functional food market could cross US$120 billion by 2032. This means a market bigger than Rs 1 lakh crore in which Makhana is rapidly entering and India’s domestic market will also reach Rs 19.6 billion i.e. Rs 1960 crore by 2033. The real money is not in selling plain makhana. The real money is in value addition. The idea is to convert that makhana into protein bars, cereals and gluten-free snacks. And where is the growth? North America, USA and Canada. It is growing the fastest. This is a gold mine for export.
Government Support: GI Tag and National Makhana Board
Government is also with you in this race. You are not alone. The government itself is supporting you. Two very big things have happened.
- First, the government gave GI tag to Mithila Makhana in 2022. This is the same tag that Darjeeling Tea and Alfaso Mango have. This gives your product a premium identity and legal protection in the global market. Now no one can sell any other Makhana in the name of Mithila Makhana.
- And the second most recent update is that the promise made by the Finance Minister in the budget of 2025 to create a National Makhana Board has now become a reality. The government has formed it with a huge budget of Rs 100 crore and its headquarters is in Darbhanga, Bihar. That means the infrastructure is now ready. It’s just a matter of time before you start your business.
Now the question may be coming to your mind that what will this board do? This will streamline the industry in everything from production to processing, value addition, global marketing and branding. So the government first protected the product with the GI tag and now is pushing it with the Makhana Board. There cannot be a bigger green signal than this to start this business.
Sourcing: Where to Pick Up the Goods
India produces 80 to 90% of the world’s Makhana and Bihar alone produces more than 85% of the total Indian production. Note the districts in Mithila Koshi belt of Bihar. Madhubani is the centre of GI tag. Darbhanga, Purnia, Katihar, Saharsa. This is your ground zero. You can buy the goods from local markets, private processing units or directly from FPOs i.e. Farmer Producer Organizations.
But here is an on-ground reality that you have to understand. The supply chain of Makhana is still highly fragmented.
What is the problem?
- So the first problem is price volatility. Meaning there is no minimum support price for farmers.
- The second problem is that recently the farmers of Purnia protested. 80% of the farming is taking place in Purnia but the Makhana Board has been formed in Darbhanga which is very far away and no one is listening to their voice.
So now you have a huge strategic and ethical decision:
- You can pick up the goods from the market which is fast but the quality will be up and down. Your brand will not be able to tell the story of farmer empowerment.
- You can create a direct sourcing chain directly from the farmers of Purnia Madhubani or from FPOs.
It is difficult and will take time but you will get three things:
- First, stable quality control,
- second, stable pricing and
- third, an authentic brand story.
Now this authentic brand story makes your foundation strong. Customers connect with that brand story. Customers connect with that narration. You can tell the problems of the farmers there in your story and tell how you are helping them. We are empowering them to build their brand which will connect people from all over India and even the world and because of this story, you will have a very strong branding and you can build a business. If you want to build a Makhana Empire, the foundation must be strong. That strength can come from here.
Grading and Quality Check
Makhana is graded in two ways:
- First, according to the thread, meaning thread is a measurement. One thread equals to 3.17 mm. Four threads means 12 to 15 mm. This is regular budget grade. Five threads i.e. 15 to 18 mm. This is the standard D to C snack grade which is the most popular. Six thread i.e. 18 to 21 mm is the premium grade and seven thread i.e. 21 mm is the largest. This is top export quality.
- And the second system is traditional grade i.e. according to quality. Grade One Lava Rasgulla. This is premium stuff. This is the fully expanded, round and creamy white colour product that is available in exports. The second grade is Murrah or Samudra. This is a mixed size. There may be some reddish spots. Standard Domestic Grade and Grade Three is Thirri. It is flat, irregular or hard i.e. semi-popped. It is cheap and is often used to make powder.
In today’s market, the wholesale rate of premium six plus cotton makhana ranges from ₹900 to ₹1300 per kg. But friends, when you flavour it and sell it in your own brand with premium packaging, the retail price easily goes up to ₹1600 to ₹2500 per kg. This price gap is your profit margin.
Product Ideas and Value Addition
Selling plain makhana is B2B trading. But building an empire needs value addition. You can make three types of products.
- The first flavored snack. This is the most common. Roast the makhana, don’t fry it, and add flavours. Like masala, peri peri, cheese, mint, tomato. It directly goes into the market of chips and popcorn and competes with them.
- Second is Makhana as an ingredient i.e. make Makhana powder from B to B. It is a high demand gluten free ingredient. You can supply it to bakeries, health drink makers or nutritional supplement companies on B2B basis.
- And the third one is Makhana based functional foods which is the future. This is real innovation. Make new products using Makhana as the main ingredient. For example, you can make Makhana energy bar by mixing it with Ragi and dates. You can make Makhana Choco Bites. You can make ready to cook makhana kheer mix by mixing it with peanut butter and jaggery. You can make Makhana Chivda Namkeen Mix. These are some options that you can explore.
Business Models: B2B vs D2C
What will your Makhana business model be now?
- So one is B to B. You sell makhana or makhana powder in bulk in sacks to other companies. It has a long sales cycle. Margins are low. But the orders are big and consistent because you enter into a contract for 6 months to a year.
- Then there is D2C option in which you create your own brand in the name of Makhana Empire or whatever name you want, you make beautiful packaging and send it directly to the customer through Amazon, Flipkart, blink or your own website. The margins are very high but you will have to work hard on marketing, branding and distribution. You will have to spend some money also.
Iam telling you with the example of two brands. You can go and study about them in detail :
- Mr. Makhana: He changed the image of Makhana. It has transformed fast food into binge watching snacks and their branding is authentic. His designs have focal drawings of villages in Bihar. He proudly told his origin story.
- Farmley: They work directly with 5000 plus farmers and buy Makhana from more than 3500 farmers in Purnia Bihar and formed a trust and on this trust the family business is running very well.
Look, storytelling and transparency are the keys to D2C. If you crack it, make your storytelling, brand story very strong, then brother, your business will become a hit.
Legal Checklist for Starting a Company in India
After finalising the idea. You have to follow legal checklist, read it carefully :
- First MSME or Udyam Registration. This gives you the identity of a small business. For government loans and subsidies. This is very important.
- Second GST registration. If you are selling in B2B or selling goods from one state to another then you must need a GST number.
- The third is the trap license. This is non-negotiable. This license is required to sell any food item in India. That 14 digit FSSCI number must be printed on every packet of yours.
- Then the fourth one is trademark. Register your brand name like Makhana Empire or whatever name you are keeping. Makhana Snacks Trademark Class 29 which falls under Dried & Processed Foods. Go there and get registered so no one will be able to copy your name.
People get confused in the trap. It is very simple. One is basic registration. If the turnover is less than 12 lakhs then State License turnover is between 12 lakhs to 20 crores. Central license for higher turnover when it exceeds Rs 20 crore. But always remember one rule, if you plan to export, then even if your turnover is zero, you will have to take FSA Central License from the very first day. Export always takes place through central license.
Funding and Government Schemes
Now let’s talk about money. Where will the funds come from for machinery, raw material, packaging? So there are some schemes of the government which I am telling you about. Take note of it.
- One is the PMFME scheme. This is the best scheme for food processing. You can get 35% credit linked subsidy on your project cost up to a maximum of Rs 10 lakh. And Makhana is one district one product of six districts of Bihar. So getting approval becomes very easy in this.
- Then there is another scheme, Pradhan Mantri Mudra Yojana. This is a collateral free loan. That means loan without guarantee. There are three categories. Shishu up to Rs 500, Kishor from Rs 500 to Rs 5 lakh and Tarun from Rs 5 lakh to Rs 10 lakh.
- The third scheme is Makhana Vikas Yojana which is of Bihar Government. This is specifically for the farmers of Bihar. In this, up to 75% subsidy and grant is available for Makhana cultivation and traditional equipment. For this you can apply from the website of Bihar Horticulture Department hoticulture.gov.in.
Export Requirements and HSN Codes
So now the domestic market is set. Now is the time to take the empire global. For this, apart from domestic license, you need two more things.
- The first is IEC code i.e. Import Export Code. It is obtained from DGFT i.e. Directorate General of Foreign Trade. This is your business passport. Without this no shipment can go out of India.
- Second, APEED RCMC because Makhana is an agricultural processed food, you have to get its Registration Membership Certificate i.e. RCMC from APEED whose full form is Agricultural and Processed Food Products Export Development Authority.
Note this carefully: Before 2025, Makhana did not have its own dedicated HSN code. The HSN code is a global code through which the customs department of any country can identify which product is in this box by looking at that code. So when Makhana did not have its own HSN code, people used to export it by confusing it with the codes of Poha and other dry fruits. But in the Finance Bill 2025, the government has allotted new dedicated HSN codes for Makhana. 2081921 has been allotted for popped makhana, 2081922 for makhana flower or powder and 2081929 for other makhana products. This means that Makhana now has an official identity in global trade. Custom clearance has become easier and the industry has also become legitimate now.
Target Markets and Documentation
So now the question arises where to sell the goods? Top markets are USA, Canada, Australia, UK and UAE. But the rules of every country are different.
- USA is the biggest and most strict market. To export makhana to the US, it is mandatory for your processing facility to be registered with the USFDA i.e. Food and Drug Administration.
- Here in Canada, you will have to follow the rules of CFIA i.e. Canadian Food Inspection Agency.
- And Europe means the European Union and the UK. The EU Novel Food Regulations and food safety standards are very strict here. So organic certification matters a lot here.
Important Documents
If even one paper is missing, the shipment will get stuck:
- Commercial Invoice and Packaging List. This is the basic bill and list. All these things.
- Bill of lading. If it is going by shipping then bill of lading. If you are travelling by airline or flight, then airway bill is the proof of transportation.
- Then the Certificate of Origin is proof that the goods are Made in India.
- Then a phytosanitary certificate is required. This is most important, memorize it because Makhana is a plant product. You will need to obtain a certificate from the Plant Quarantine Department of India stating that your goods are free from any insects or diseases. If you do not have this certificate then the importing country like USA can reject or destroy your entire container. The entire business may sink.
Conclusion
So this is the complete road map of Makhana business model. I hope you understood the $120 billion global opportunity. You saw how the government is standing behind you with the GI tag and the National Makhana Board , the reality of the farmers of Bihar and the quality of Suta Lava grade. You also gone through the B to B i.e. powder and D to C business models. You also learned about the PMFME scheme for loans and finance for domestic luch. And finally you also saw the way for export with IEC code, new HSN code and phytosanitary certificate.
So now your Makhana Empire is waiting for you. This journey is long but the road map is now in your hands.