PROJECT REPORT ON EXPORT PROMOTION

OF MAKHANA FROM BIHAR

UNDER GOI-UNCTAD DFID PROJECT ON

STRATEGIES AND PREPAREDNESS FOR TRADE
AND GLOBALIZATION IN INDIA

SUBMITTED TO

By

Dhanraj Mahal, 1st Floor, Chatrapati Shivaji Maharaj Marg, MUMBAI-400001

Northern Regional Office, B1/9, Community Centre, Janakpuri, New Delhi-110058

2007
 CONTENTS
Page No.
Preface
Acknowledgement
Executive Summary of the Project 1-2

I INTRODUCTION 3-4
a. Background of the Project
b. Objectives of the Project
c. Constitution of the Team
d. Methodology and Field visit

II MAKHANA CULTIVATION 5-9

a. Morphology of Makhana
b. Makhana cultivation Practices
c. Pest and control Measures
d. Post – harvest operations
e. Required implements/appliances
f. Dietary characteristics of Makhana
g. Medicinal properties of Makhana

III STATUS OF MAKHANA CULTIVATION & FINDINGS 10-26

a. Demographic and Socio institutional settings of Makhana cultivators
b. Inventory of water resources
c. Lease system of government ponds
d. Level of Technological use
e. Productivity levels
f. Economics of Makhana cultivation
g. Price Spreads
h. Sources of Fund and interlinked transactions
i. Market Channels
j. Storage Godowns
k. Transport connectivity and accessibility level
l. Risk hazards
m. Legal and Promotional environment
n. Value addition/Flow Chart
o. Production of Makhana – Guri and Pop
p. Segments of demand absorption
q. Demand projections of Makhana

IV RECOMMENDATIONS 27

V ANNEXURES 28-45
 PREFACE

A sound macro economic environment and effective trade policies are essential but not
sufficient conditions for integrating developing countries in the multilateral trading
system. There is also a need to enhance national and sub national capacity to formulate
export strategies at selected product/sector level, based on realistic assessments of
production and understanding of international commercial practices and standards. To
facilitate and support this capacity building, the Government of India, UNCTAD and
DFID/UK are jointly implementing a five-year programme titled "Strategies &
Preparedness for Trade & Globalization in India". AFC feels privileged to have been
associated as a Tier II partner.

The present study on identifying constraints and working out action plan to increase
exports of Makhana (Gorgon nut) from Bihar has been conducted under the above
project.

Bihar accounts for over 85 per cent of the Makhana production of the country which
resulted into thrust area for taking up the task and identifying the constraints in the
export of Makhana from the state. As per a rough estimate 50,000 tonnes of Makhana
worth Rs 550 crores in market are produced annually. However, there is need of
undertaking an extensive survey of its actual coverage, production and productivity in
North Bihar, Lower Assam and other places in India.

Makhana is probably an under exploited and under investigated crop. It is being

cultivated traditionally and its processing from guri (makhana) to pop requires skilled
laborers. Mechanized processing is yet to be introduced which restricts its standardized
processed products inhibiting export demand. Integrated Makhana-Fish cultivation,
mechanization of harvesting, post harvesting and processing, establishment of makhana
based industries, development of better storing and transport facility, contract farming
and efficient marketing will play a vital role in livelihood enhancement of poor Makhana
growers.

A K Garg
Corporate Office: Managing Director
Dhanraj Mahal,CSM Marg,
Mumbai
 ACKNOWLEDGEMENT

The Government of India (GOI), United Nations Conference on Trade and Development
(UNCTAD) and Department of International Development (DFID), UK are jointly
implementing a five year project titled ‘Strategies & Preparedness for Trade &
Globalization in India”. APEDA has been selected by UNCTAD as Tier-I partner to
facilitate the formation of a virtual network of existing national, regional and state level
institutions dealing with the trade in agro products. In addition AFC as Tier II partners
have also been identified to facilitate in increasing the level of awareness and building the
capacities of the stakeholders at various levels to meet the opportunities and challenges of
globalization. The initiative by APEDA for preparation of project report on makhana
export promotion from Bihar is a welcome step in achieving the said objectives.

AFC feels privileged and honoured to have been assigned the preparation of the project
report on export of Makhana from Bihar. AFC is extremely obliged to Shri T.C. Venkat
Subramanian, Chairman & Managing Director, Export-Import Bank of India for his
sagacious suggestions. The various issues such as global production – consumption
pattern and its utilization and value addition prospects were discussed with Shri Ashish
Kumar, Chief Manager, EXIM Bank.

A team under the leadership of Shri Niraj Kumar Jha, Manager, AFC was constituted to
undertake the study. The field work became inspiring in the presence of Dr. B.K.Jha, Sr.
Scientist, National Research Centre on Makhana, Darbhanga. AFC is grateful to NRC,
Makhana for its high quality inputs on overall prospect of export of makhana from Bihar.
AFC is also thankful to entrepreneurs, wholesale and retail traders, secretaries of
cooperative societies, growers and processors, who readily cooperated with the study
team in providing necessary inputs. AFC appreciates the valuable inputs provided by Shri
Vijay Mahto on makhana trade and Shri Satyajeet on value addition/processed products
in Makhana commodity.
 Executive Summary

Bihar accounts for over 85 per cent of the Makhana production of the country
which resulted into thrust area for taking up the task and identifying the
constraints in the export of Makhana from the state. As per a rough estimate
50,000 tonnes of Makhana worth Rs 550 crores in market are produced annually.
However, there is need of undertaking an extensive survey of its actual coverage,
production and productivity in North Bihar, Lower Assam and other places in
India as well as abroad including Japan, China, North America, Korea etc.

Makhana is probably an under exploited and under investigated crop.

Preparation of the project report on makhana from Bihar involved collection of
primary as well as secondary data from published as well as unpublished
sources. Accordingly, the field visit by the team was made to Darbhanga,
Madhubani, Katihar, Saharsa, Purnea and Patna districts of Bihar. During the
field visit, a detailed discussion was held with Dr. B. K. Jha. Sr. Scientist at
National Research Centre, Darbhanga. Besides, 40 makhana seed/guri growers
representing different size categories of ponds/tanks were interviewed with
structured interview schedule. In addition 8 makhana processors and 4 whole
sale traders from Darbhanga, Katihar and Madhubani districts were also
interviewed with a structured format.

Preparation of the project report on makhana from Bihar involved collection of

primary as well as secondary data from published as well as unpublished
sources. The team visited Darbhanga, Madhubani, Katihar, Saharsa, Purnea and
Patna districts of Bihar. During the field visit, a detailed discussion was held
with Dr. B. K. Jha. Sr. Scientist at National Research Centre, Darbhanga. Besides,
40 makhana seed/guri growers representing different size categories of
ponds/tanks and 8 makhana processors and 4 whole sale traders were
interviewed with structured interview schedule.

The net income from Guri cultivation ranged from Rs. 5625 to 10,125 per acre:
depending upon the nature and size of the pond. Prices of Guris as well as
Makhana pop varied widely across seasons as well as regional locations. For
Guri with 95 % of arrival concentrating between August to October its prices
during peak season remained low in the range of Rs.15 – 20 /kg. It reached
almost Rs.20/kg by December. It is hoarded mostly by the wholesalers in
Madhubani, Darbhanga, Katihar and Purnea. Within the season, it varied albeit
marginally, across different locations/blocks in the district.

Based of the field visits, the following are the steps which are proposed to be
taken to expedite the export of makhana from Bihar.
9 Integrated Fish cum Makhana Cultivation should be promoted which will
play a vital role in livelihood enhancement of poor Makhana growers.

9 Good Agricultural Practices as recommended by National research Centre,

Darbhanga should be promoted through cluster based approach.

9 Mechanization of harvesting, post harvesting and processing is required.

NRC has already developed mechanized system of makhana pop processing
which will be started in few months.

9 Institutional credit facilities at two intervals such as during leasing of

pond/land and irrigation are required.

9 Training/Capacity building on makhana processing specially from guris to

pop is required.

9 Contract farming based on centralized model may be adopted. As the

processor buys the commodity from a large number of farmers under
contract with the firm.

9 As there is very less application of chemicals and fertilizers so this crop can
be taken as Organic produce and its promotion is required accordingly.

9 The Agri- Export Zone Hazipur, could be widened to include export

promotion of Makhana products as well under partnership of makhana
growers/processors, value adding processing firms to get fiscal incentives in
terms of tax concessions under the schemes of government of India.

9 The traders/wholesalers/retailers are not aware about the procedures of

export. So, training for creating awareness regarding the export
procedures/ISO certification etc is also required.

CHAPTER I

INTRODUCTION
Background of the Project

The Government of India (GOI), United Nations Conference on Trade and Development
(UNCTAD) and Department of International Development (DFID), UK is jointly
implementing a five year project titled ‘Strategies & Preparedness for Trade &
Globalization in India”. APEDA has been selected by UNCTAD as Tier-I partner to
facilitate the formation of a virtual network of existing national, regional and state level
institutions dealing with the trade in agro products. Agricultural Finance Corporation Ltd
as Tier II partner have been identified to facilitate in increasing the level of awareness
and building the capacities of the stakeholders at various levels to meet the opportunities
and challenges of globalization. The Agricultural Produce Export Development Authority
(APEDA) assigned the preparation of project report on export promotion of makhana
from Bihar.

Objectives of the study

The specific objectives entrusted by the APEDA for preparation of the project report on
export promotion of makhana from Bihar were as follows:

a. To prepare a detailed report on export promotion of makhana from Bihar

b. To identify the constrains in export promotion of makhana
c. To identify harvest and post harvest technologies for makhana including
mechanization of harvesting, post harvest and processing
d. To study the existing arrangements for cultivation and prospects of contract farming
e. To insuring the sustainability of aquatic eco system
f. To identify constraints in profitability of makhana growers, exports of makhana and
its processed products.

Constitution of Team
For preparation of the project report on Makhana, a team of officers under the leadership
of Shri Niraj Kumar Jha, Manager AFC was constituted and necessary guidance was
taken from Dr B.K.Jha, Sr. Scientist, National Research Centre, Darbhanga. The different
issues on value addition and its export potential have been discussed with Shri Ashish
Kumar, Chief Manager, EXIM Bank. In addition, field supervisor has been assigned the
data collection task.

Methodology and Field Visit

Preparation of the project report on makhana from Bihar involved collection of primary
as well as secondary data from published as well as unpublished sources. Accordingly,
the field visit by the team was made to Darbhanga, Madhubani, Katihar, Saharsa, Purnea
and Patna districts of Bihar during 02/08/2007 to 12/08/2007. During the field visit, a
detailed discussion was held with Dr. B. K. Jha. Sr. Scientist at National Research Centre,
Darbhanga. Besides, 40 makhana seed/guri growers representing different size categories
of ponds/tanks were interviewed with structured interview schedule. In addition 8
makhana processors and 4 whole sale traders from Darbhanga, Katihar and Madhubani
districts were also interviewed with a structured format (Annexures).

CHAPTER II

MAKHANA CULTIVATION

Euryale ferox Salibs known in Vernacular as Makhana and Gorgon nut or Fox nut in
English belongs to the family of Nymphaeceae. Reports of fossil species corroborate that
E ferox is a temperate plant, introduced through bird dispersal in different parts of the
world, mainly India, China, Japan, Korea, North America, Manchuria, Nepal and
Bangladesh. In India, Makhana is grown as a natural crop in stagnant water pool mostly
lakes and tanks, in states such as Bihar, Assam, West Bengal, Tripura, Manipur, etc. The
bowl shaped physiography of north Bihar in general and Mithilanchal in particular,
abounding in myriad stagnant fresh water pools with repositories of diverse acquaphytes
holds unbound potential for cultivation of Makhana crop in this land. Although Makhana
is cultivated in stagnant water pools/lakes in different parts of the country, the possession
of unique skill by the fisherman community of Mithilanchal in arduous task of
harvesting/collection Makhana Guri seeds from the deep water beds by making heaps on
the beds through countless diverse and processing these seeds into kernels/ pops endows
this region in commercial cultivation and processing of this crop.

i) Morphology of Makhana
The Makhana plant is a large prickly acaulescent aquatic herb with floating
leaves. The plant grows in standing shallow water (1.5-5.0 feet water depth) and
has rhizomatous stem. The rhizomes remain deeply rooted in the sediment by
means of thick fleshy roots in clusters. The huge thorny elliptic or orbicular
mature leaves are peltate (1.0-3.0 diameters). The leaves are green above and
red/purple beneath.

The fruits mature and burst between June and August and the globular seeds drop
to the pond/water bed. With the onset of winter season, the plant undergoes
natural decay. To facilitate harvesting of guris/ seeds, the left over thorny plants
are removed from the water before harvesting. With harvesting of guris/seeds
complete in three to four separate collections, some seeds are left over in the pond
bed and start germination around December – January. The thick fibrous roots
comprise three four clusters, each having 15-17 rootlets. The growth stages of
Makhana plants are sowing (mostly left – over seeds) germination, membranous
leaves, flowering and fruiting, bursting of fruits and harvest phases, occurring
during, November, December, January, February-March, April-June, July-August
 and September-Octobers months respectively. The flowers are solitary submerged
and epigenous with four persistent thorny sepals inserted on the flowers above the
level of the ovary together with several seriate petals. The ovary opens on the
surface of the water 2-3 days and then sinks under water until the fruit ripens.
Around the ripening stage, the fruit once again reappear on the water surface. The
inferior, multi- carpellary ovary develops into a spongy fruit, which is densely,
prickly of the size of a large orange, containing 30-40 pea-sized seeds with bard
black seed cover. Once the fruit ripens, it bursts open and seeds spread over the
pond bed.

ii) Makhana Cultivation Practices

The leftover seeds germinate for the next crop cycle/season during October-
December. Replantation is done manually if there is dense or sparse growth of
plants. The tender plant is protected form pests, mostly through manual netting/
roping of the plant or application of firewood ash. Of late, the makhana growers
have started using pesticides as well if the pests menace is not controlled by the
manual or natural methods. Normally the growers would utilize his own plant
buds in other ponds owned by him or the same pond for replantation. In rare
cases, it is sold or purchased. The indigenous boat made banana trunk or earthen
pot are used for pest treatment and other related operation. The re composition of
organic matter either decayed plants or supplements such as dung/ manure act as
fertilizing agents for the crop flowering starts in April – May.

iii) Pests and Control Measures

The plant is attacked by a number of insects and pests such as aphids, caseworms and
root borers. Heavy infestation is characterized by etiolation and decay of leaf. The
traditional method to overcome such pest attacks on Makhana plants involve
roping/netting as also application of burnt firewood or ash. Modern methods of
controlling the pest menace are controlled through sprays of insecticides like Sevidon,
BHC and Eldrin. The Makhana leaves are also attacked by fungal leaf blight disease,
which can be controlled by spraying pytolam. Besides storage insects like mite are
also common, which bring about a decline in the quality of the pop and stored raw
seed. If not checked, the production loss could be as high as 80-90% due to pest
infestations.

iv) Post-harvest Operations.

After the harvest of Makhana guris/seeds, it is sun-dried and stored in shade under
constant spraying of water as long as it is not popped. It is then processed manually
into Makhana pop which involves drudgeries of human labour, often creating adverse
health hazards for those involved in processing work, mostly women and children.
Proto-type of a popping machine has been developed at National Research Centre on
Makhana, Darbhanga. But, it is yet to be commercialized.

v) Required Implements/Appliances
Some of the major implements/tools/appliances required in Makhana guri cultivation
and pop processing are as follows:
a. Pitcher Floats (Gharra): It is an indigenous boat made with bamboo poles and
earthen gharra in inverted position. It is used for movement in pond interiors for
various operations such as replantation, plant protection, harvesting etc. This is also
used for fishing and harvesting of Singhara (Water Chestnut), another aquatic crop.
b. Rope: The long inter-woven paddy straw, made indigenously, mostly by
Makhana growers themselves, is used to roll over the tender leaves in the pond
(March-April) to control aphid pests.
c. Auka: It is a cylinder shaped large bamboo stick bucket with one end closed and
the other end kept open. It is used for harvesting raw seed/guri from the pond bed.
d. Gaaz : It is an inverted bell or comma shaped bamboo stick appliance, utilized
along with Auka for harvesting guri/seed. It is also used in fishing operation.
e. Kaara : The bamboo poles fixed in the pond sediments are known locally as
Kaara. They are used for demarcation of areas to be swept by individual harvesters.
Seeds collected at the bottom of the pond are heaped around these kaaras for being
lifted ashore.
f. Khonghi or Deli: It is smaller bamboo stick bucket with cylindrical shape like
Auka. It is utilized for storing raw and popped seed as well as fishes.
g. Vines: Two locally available vines, known in vernacular language as Dudhlau and
Kariyaunu, are utilized as cordage in bamboo appliances.
h. Sieves: Seven to ten sieves of different mesh sizes are used for the gradation of
raw seed and popped Makhana. These sieves are made of iron sheets with wooden
frames.
i. Mats: Mats are used of sun-drying raw seeds/guris before roasting. These mats are
generally made of kush.
j. Aphara and Thaapi: These are wooden appliances made of heartwood, mostly
shisum. Aphara is a platform on which roasted guris/seeds are hit with flat wooden
hammer called Thaapi.
k. Karachi: This is bamboo split which are inserted in the mud along with the
transplanted seedling to help Makhana plant establish foothold when the water level
is deeper.
l. Earthen pans: Vernacularly known as Karachi, they are utilized for roasting the
sun dried sees/guris without sand mix.
Some other appliances used in Makhana Guri cultivation and pop processing are
Pathiya and Chhitiya made of bamboo sticks. Besides, there are a few other
appliances such as earthen pitchers, aluminium and iron utensils, and jute/plastic
bags.

vi) Integrated Fish-Makhana Cultivation

Integrated makhana- fish cultivation is reported to be the common practice in the
State of Bihar. It involves rearing of air-breathing fishes like Kavai, Mangur, Singhi
etc. along with cultivation of makhana in small ponds with moderate supplementary
feed. The culture of water breathing fishes is restricted in such ponds, as makhana
leaves create a blanket cover over the water surface, restricting fishes to take water
breathing. However, in large ponds, the integrated Makhana-fish culture consisting of
water breathing fishes like Rohu, Katala, Mrigal etc. was also observed in the field.
Technology for such culture involves setting aside the middle part of the pond from
Makhana cultivation such that the blanket cover on water surface due to large
Makhana leaves are avoided. Recent experiment made for integrated Makhana fish
culture with exotic fish like Telapia in Darbhanga division has offered a new option
to such growers in the district. This exotic fish is a voracious herbivore and even
controls the menacing weed in Makhana ponds.
vii) Dietary Characteristics of Makhana
The food material in Makhana seed is stored in the perisperm. Edible parts of the seed
contain 12.8% Moisture, 9.7% Protein, 0.1% Fat, 0.5% Minerals 76.9%
Carbohydrates, 0.9% Phosphorous, 0.02% Calcium and 1.4 mg/100g of Carotene.
Calorific analysis gives a value of 362 k.cal/100g for raw Makhana and 328
k.cal/100g for popped Makhana. Thus the calorific value of Makhana compares well
with staple food materials such as wheat, rice etc. Makhana is superior to dry fruits
such as almonds, walnut, coconut and cashew nut in terms of sugar, protein and
ascorbic acid and phenol content. It is even superior to many plant and animal based
diets.
viii) Medicinal Properties of Makhana.
The medicinal properties of Makhana are also well established, but least explored. Its
curative properties for human ailment such as respiratory, circulatory, digestive and
reproductive system are well established. It is also effective for stomachic and
anticular pain as also seminal loss. On account of lesser fat content it serves as an
ideal food for heart patient.
CHAPTER III

STATUS OF MAKHANA CULTIVATION IN BIHAR

As is reflected by the data information obtained through sample survey of makhana

growers as well as processors, sampled with whole sellers and different government
officials, cultivation of makhana in Darbhanga is replete with inefficiencies and
rigidities in the factor market, including the weather pond resources. More important,
it is characterized by absence of new technological packages, large intermediaries in
the makhana product market, interlinked credit and product transactions with high
element of exploitation, weak socio-institutional settings in which makhana growers
 and processors operate, absence of adequate demand absorptions, large price and
production fluctuations etc. In order to have a better glimpse of the production
conditions of makhana commodity, the following paragraphs present an analytical
insight on the status of makhana cultivation a little more elaborately.

i. Demographic and Socio -Institutional Setting of Makhana Cultivators

The Makhana growers in the district are from the mallah /machhuara/ keot caste with
fishing and Makhana cultivation as their major economic activity. It is their
traditional occupation, inherited from forefathers for generations. According to rough
estimate, there are around 30 households of mallah with a population of around 2.0
lakh persons in the district. Average family size, ranging between 5-8 persons is
much higher among them. The Mallah community is sub-divided into three sub-castes
viz, Baanpar, Chaabh and koal, each with straight jacketed composition, not marrying
among each other. Of them Baanpar, forming only 10% of the community, is superior
cast group, belonging mostly to the creamy layer. They are resource rich as well as
better educated. Politically, they are more active and most of the Secretaries of
Machhuara Co-operative Societies belong to this sub-caste. Generally, they will not
do the menial job on Makhana ponds. On the other hand, Chaabh and Koal sub-caste
groups have the dominant demographic presence, and are most resource poor and
illiterates. They are the actual divers and guri harvesters. These people move in
groups to different places in Madhubani,, Darbhanga,Katihar, Saharsa as also distant
places in Assam, West Bengal and the neighbouring country Nepal for harvesting
Makhana seeds. The group generally harvests the seeds in 2-3 lots on contract basis
either on share of seeds or cash amount. They also possess the unique and the
exclusive skill in Makhana pop processing.

Literates with knowledge are counted few, more so among the females. With acute
poverty, incidence of malnutrition and under-nutrition was visible, particularly among
the children of this community. Division of labour is categorical among them with
men folk cultivating Makhana crop which included sowing (if required) transplanting
and harvesting guris. The trading of Guris and Makhana Lawa is also handled by the
male folk. These men are also engage in fishing work as wages labourers. The women
folk on the other hand vend fish look after domestic animals ( Cow, buffalo and goat)
cultivate the fields taken on batai, fry makhana seeds for popping(which is shared by
men also) besides cooking the meals , looking after the house and family kids.
Children too contribute, particularly in removing the kernels from Makhana pop.
While the son would help in fishing and Makhana cultivation, the girl child does the
household chores, including tending of little children. Child marriage has been
reported common in this community.

Thatched mud houses make up their dwelling places, which are generally clustered
around the water bodies. These water bodies i.e. ponds are sanctified by them as their
deity who they worship and render sacrifices. A strong caste- panchayat operates
among them whose decisions are binding on the fellow caste men. Serious affliction
in their society is alcoholism among the men apart from tobacco chewing and bidi
smoking. This often leads to domestic violence and forces them into vicious cycle of
crippling indebtedness. The men folk borrow money from the middlemen and
moneylenders at high rates of interest (60%-120%) to meet their day to day expenses
and drinking habit which forces them fall into debt trap.

Although the mallah community is the traditional grower of Makhana other castes
have also moved into the business of Makhana cultivation and created their own
niches in this market. They cultivate Makhana either on their own ponds or sub leased
government ponds by engaging the services of mallah as wage earner.

ii Lease System of Government Ponds

Government ponds, earmarked for Makhana cultivation are leased at prescribed rates
with preference of Fishermen Co-operative Societies which in turn lease it to its
members. These societies are registered under the Bihar Co-operative Societies Act
1935. The ponds are leased in the name of the Secretary of the society who sub-lets
the government ponds to the members. In some villages, it was seen that the entire
community in the village jointly cultivated Makhana ponds with equal sharing in the
output as well as labour and other inputs. The secretaries are elected by the members
and these societies are governed by the rules under the 1935 co-operative act.
Attempts have also been made to organize the Machhuara women into thrift and
credit groups i.e. Self Help Groups. Some NGO’s like SAKHI have separately
formed Fisherwomen co-operative Society, registered under the Bihar Self
Supporting Co-operative Society Act 1996. However this is yet to percolate among
the makhana growers in Madhubani district.

iii Inventory of Water Resources

Inventory of water pond resources suggests that Madhubani district is fairly rich in
pond resource as the district has a total of 5014 ponds with an aggregate water area of
9673.2 Ha. Thus the average pond area works out to 1.93 ha. In this district,
Government ponds, with a share in number of ponds and area was higher for
government ponds (2.01ha) than private ponds (1.82ha). Makhana seed/guri is
cultivated in only 41.5% of water pond tank area (4,019ha) in the district. Besides the
large low lying chaur land(approximately 10 thousand ha) also offers technical
potential for Makhana guri cultivation in the district as has been the experience in
Madhubani district.

Blocks having larger number of ponds (government as well as private) included

Ghoghardiha, Laukahi Harlakhi, Jhanjharpur, and Basopatti. However in terms of
water area blocks such as Jhanjharpur, Basopatti, Harlakhi, Ladaniya and Madhepur
figured more prominently. Comparison of government ponds vis a vis private ponds
across different blocks revealed that blocks such as Rajnagar, Madhawapur and
Madhepur had larger number and area of private ponds. On the contrary blocks such
as Pandaul Ladaniya, Babubarhi, Khajauli, Harlakhi, Basopatti, Jhanjhapur,
Ghoghardiha, Andhra Tharhi and Laukahi had larger number and area of government
ponds.

As may be recalled, the government pond is given on lease to Secretary Fishermen’s

Co-operative Society for one year period only by the district administration at
prescribe rates. The Secretary in turn would sub-lease the pond to its members either
in group or individually for one year at higher rates. However the field investigation
revealed that third party lease of ponds by members of the Fishermen’s Co-operative
Society was common. Besides, the current lease arrangements of government ponds
were revenue neutral and promoted large intermediations at the cost of depriving the
real beneficiaries. It also promoted conflicts often leading to violence and not use of
water resources. It also augmented lease cost of ponds, forcing Makhana growers to
borrow at high rate of interest from informal money market, mostly the wholesalers.
Instance of government ponds not being leased on account of being declared idle was
also observed in certain cases. All these reflect the fact that the tank/pond resource
which is so crucial for the cultivation of makhana is inflicted with
institutional/legal/structural rigidities, jeopardizing and hampering the cultivation of
makhana guris in the district.

iv Level of Technological Use

Cultivation of Makhana guri was pure traditional with absence of modern
agronomical practices. There was hardly any improved seed variety of Makhana. The
same seed, which was left in the pond or couldn’t be harvested, germinates again in
the next year, often with high density. The growers would re-paint them, if so
required, in case the growth of makhana plant is sparse or dense. The application of
chemical fertilizer was absent. Further, the Makhana plant would often get pest
attacks. Farmers were found to use least of chemical pesticides and depend heavily on
natural treatment like application of rakh/ash. In some cases, where the pond size was
large, the farmers applied roping/netting techniques such that the pests/genus fall
down to the ground from the Makhana leaves. With virtual absence of chemical
fertilizer/pesticides Makhana cultivation in the districts were organic based.
Harvesting of Guris was done manually often with high health hazard and life risk. In
one village, a farmer narrated that while collecting guris from underneath water, once
the fish entered the nose of a driver (boy) and he died instantly. The harvesting would
be done using some tools made of bamboo sticks known as gaaza, which wouldn’t
last a single season with its intensive application. It could thus be summed up that the
Makhana cultivation lacked use of improved technological and agronomical practices.
Again, processing of Guri into Makhana pop is done manually, mostly by the female
folk, which is hazardous to health and involve high degree of drudgeries, as they have
to work constantly before fire. The process of hammering the heated Guri is also
hazardous and at the same time it leads to wastage/loss of Makhana pop, as seeds, if
fallen out of the flat wooden platform become thurri of low quality lawa/pop.

v Productivity Levels
In the absence of new agronomical and technological practices, the productivity level
of Makhana seed/guri as well as makhana pop much low in Madhubani district as
compared to technical potential as also those in Purnea district. It was around 9.5
quintals/acre for Guri and around 3.8 quintals/acre for Makhana pop in 2005-06.
Again, the productivity level of Makhana Guri was higher for larger size ponds as
also size of capital and vice versa. It was largely because the higher size ponds
owners invariably used and employed larger capital for pest control measures as also
for re-plantations, which, in turn, augmented yield level of guri production in such
ponds. The case of makhana pop, however, didn’t show any significant variations
across different size categories of capital employed in the procurement of raw guris or
makhana seed. This was largely because the processing of guri into makhana pop was
invariably done through the same technology.

However, the recovery rate of Makhana from guris was significantly influenced by
the quality of guri/seed and the skill of the processor. It was learnt in the field that
smaller the seed better was the lava and vice versa. It was gathered that Makhana
Guris grown in Katihar district with smaller size yielded better recovery rate in
respect of Makhana pop. However, the skill for process of Guri and Makhana pop is
 not commonly found everywhere. Even in Madhubani district among makhana
community specialized in processing of Guris into best of makhana pop because of
their traditional inheritance of the skill, mostly by the female folk.

vi Economics of Makhana Cultivation

Details of the economics of Makhana (Guri) cultivation and Pop Processing
including gross income, operating cost and net income for different size categories of
Makhana pond growers/Processors/ Market Prices etc are presented in the Tables 1-6.

Table 1: Economics of Makhana (Guri) Cultivation on Own Pond per acre.

Sl.no. Particulars Qtls/Rs.
A) Output
i) Guri/Seeds qtl. 10.5
ii) Farm gate prices of Guris (Rs.Kg) 15
iii) Gross Income from Guri Production (Rs.) 15,750
iv) Income from small fishes 1000
Gross Income 16,750
B) Operating Cost
i) Pond lease rent/cost ----
ii) Plant/seed materials ----
iii) Water filling 1850
iv) Water Draining ----
v) Pest Treatment ----
 a)pesticides ----
b)Netting Roping ----
c) Application of Ash 300
vi) Chemical Fertilizer ----
vii) Manure 800
viii) Labour Cost ----
a) Replantation 500
b) Harvesting of Guri 2,850
c) Transportation of Guri 100
d) Drying of Guri 225
e)Watch and ward ----
ix) Interest paid on borrowed funds
x) Depreciation of Fixed Capital ----
Total Cost 6,625
C Net Income (A – B) 10,125
Table 2: Economics of Makhana (Guri) Cultivation on Leased Pond per acre.
Sl.no. Particulars Qtls/Rs.
A) Output
i) Guri/Seeds qtl. 10.5
ii) Farm gate prices of Guris (Rs.Kg) 15
iii) Gross Income from Guri Production (Rs.) 15,750
iv) Income from small fishes 1000
Gross Income 16,750
B) Operating Cost
i) Pond lease rent/cost 4500
ii) Plant/seed materials ----
iii) Water filling 1850
iv) Water Draining ----
v) Pest Treatment ----
a)pesticides ----
 b)Netting Roping ----
c) Application of Ash 300
vi) Chemical Fertilizer ----
vii) Manure 800
viii) Labour Cost ----
a) Replantation 500
b)Harvesting of Guri 2,850
c) Transportation of Guri 100
d)Drying of Guri 225
e)Watch and ward ----
ix) Interest paid on borrowed funds
x) Depreciation of Fixed Capital ----
Total Cost 11,125
C Net Income (A – B) 5,625
Table 3: Price spreads of Guri Seed and Makhana Pop (9 kg/bag) in Katihar

Makhana Guri/Seed
SR. Agency/Levels Price Sl. No Agency/Levels Price
No. (Rs./Kg) (Rs./Kg)
1 Farm Level Processor 55-60 1. Farm Level 15-20
2 Area Level local Traders 60-70 2. Traders 20-25
3 District Level Wholesalers 90-100
4 Inter-State Level Wholesalers 100-125
5 Metro – Retailers 150-175
6 Export Price 750-900
7 Retailers
a) Season 110-130
b) Off-season 140-170
8 Consumers
a) Season 120-140
 b) Off-season 160-200

Table 4: Wholesale Price of Makhana during 2005-06 at Katihar (Rs./kg.)

SR. Particulars Season Off-season

No.
i) 8 kg Gunny bag 110 125
ii) 9 kg. Gunny bag 100 120
iii) 10 kg Gunny bag 90 110
iv) 11 kg Gunny bag 80 100
v) 12 kg Gunny bag 70 90

Evidently, the net income from Guri cultivation ranged from Rs. 5625 to 10,125 per
acre, depending upon the nature and size of the pond. The net income was higher for
large pond growers and vice versa due to integrated fish Makhana culture as also
scale and price advantage. The net income increased significantly as a result of value
addition due to processing of guri into Makhana pop. Lease cost of pond formed the
major chunk of 30 – 40 the total cost, followed by expenses towards labour for Guri
harvesting and procurement. Application of chemical fertilizer/pesticide was almost
absent. Income return ratio over cost ranged between 32 – 56% for Guri cultivation.
Value addition due to pop processing ranged between 70 and 105 per cent of the base
Guri production. Price loss due to tagged sale was around 10 per cent. Employment
generation per quintal of Guri worked out to around 7 person days. The same
increased to 17 person days in the event of pop processing.

vii. Price Spread

Prices of Guris as well as Makhana pop varied widely across seasons as well as
regional locations. For Guri with 95 % of arrival concentrating between August to
October its prices during peak season remained low in the range of Rs.15 – 20 /kg. It
reached almost Rs.20/kg by December. It is hoarded mostly by the wholesalers in
Madhubani, Darbhanga, Katihar and Purnea. Within the season, it varied albeit
marginally, across different locations/blocks in the district. It was relatively higher in
such regions/blocks where the concentration of Guri cultivation was higher as the
wholesales had scale advantage in such region and therefore offered to pay higher
prices of guris in such blocks. Price of Guris also showed to fluctuate widely across
year, often influence by the prices of Makhana pop which was by and large
determined by the wholesales in Kanpur, Delhi and Varanasi, as it was those trades
who commanded and absorbed most of the demand of Makhana pop which was by
and large determined by the wholesaler had scale advantage in such region and
therefore offered to pay higher prices of guris in such blocks. Prices of Guris also
showed to fluctuate widely across years, often influenced by the prices of Makhana
pop which was by and large determined by the wholesales in Kanpur, Delhi and
Varanasi, as it was those traders who commanded and absorbed most of the demand
for Makhana pop.

During 2002-03 in the absence of adequate demand absorption by the local

wholesales, prices of Guris remained depressed. Price of Makhana pop also showed
seasonal fluctuation. At the farm level, it remained as low as Rs55/kg in August,
reaching a level of Rs. 110-120 in the month of January –February. However with
most of the sale transactions by the grower during September – October the average
price of Makhana pop at farm gate i.e. processors level was found to be Rs 65/kg
only. At the wholesale level the average price at Madhubani was in the range of Rs
110-120/kg for 10kg, makhana gunny bag. The wholesale price at Kanpur and New
Delhi ranged at around Rs 150-160/kg. It was still higher for 8 and 9kg makhana bag
due to better quality of pop. It included transportation cost as also the commission
and miscellaneous expenses. At the retail level price of the makhana pop at different
centers like Delhi, Mumbai and Kolkata ranged between Rs. 170/kg -180/kg. With
the emergence of a few makhana pop processing units at Patna, Katihar, Darbhanga
and Madhubani, the price of makhana pop at the farm level as also at the wholesale
level has improved in recent years.
viii. Sources of Fund and Interlinked Transactions
Given the absence of investible surpluses, the Makhana growers and processors
needed credit support at several stages. The first such need is at the time of taking
pond on lease. The second stage of availing credit is when the growers spend on pest
treatment or dewatering or water filling or ponds. In some cases they need credit
support even for harvesting purposes when the payment of wages is made in cash. As
processing of Guri into Makhana pop is village specific some of such village persons
would take up Guri processing into makhana pop as a full time enterprise and
acquired guris from distant places such as Purnea, Katihar, Assam and Nepal. They
also hire skilled labourers on daily basis for the duration of makhana pop season.
Such traders cum processors also need large credit support for collection/procurement
of Guris/Makhana seeds. However the institutional credit support is by and large
absent, except those given under SGSY scheme. As a result the Makhana growers and
processors have to depend heavily on the local moneylenders and wholesale traders in
their respective districts for sourcing their fund needs. The wholesalers in Madhubani
would also outsource such fund support from wholesale traders in Kanpur or Delhi.
For such credit support the wholesale trader at Madhubani would charge an interest
rate from the farmer/processor in the range of 5-8 % p.m. while the traders at Kanpur
and Delhi would charge an interest rate of 3-5 % per month from Madhubani
wholesale trader. In addition to paying high interest rates, the grower/processor would
be required to tag sale of their Makhana Guri or pop to such traders only at a price
normally Rs.5-10 less than the prevailing market prices. More important element of
under weight at the hands of wholesale trader was also reported in the range of 10-
15%. Thus due to interlinked credit/product transactions the Makhana
growers/processors were making explicit loss by 10-15% due to underweighting and
tagged sale. The exorbitant interest, ranging between 60 to 90 % per annum further
robbed their due share.

ix. Existing Market Channels

As may be recalled, there are three distinct stages in Makhana cultivation and trade.
In the first stage Guri/ Makhana seed is cultivated by the growers in stagnant
ponds/tanks and is sold to the wholesaler or the processor. The wholesaler, in turn
gets them processed into Makhana pop on contractual basis from some to the
households from Machhuara community excelling in popping up of Makhana. The
contractual arrangement is that the wholesaler would give three quintals of
Guri/Makhana seed and the processor would give him back one quintal of Makhana
pop. In excess of one quintal is retained by the processor as wages. Wages are thus in
the range of 12 to 15 kg per quintal of processing Makhana to the wholesaler. In some
cases the wholesaler or the processor would obtain Makhana to the wholesaler. In
some cases the wholesaler or the processor would obtain Makhana guris through local
agents from distant places by paying a margin to such local traders.

The Makhana Pop is traded at different levels. Mostly it is from Makhana processor
to wholesaler under tagged arrangements. Sometimes the processor would directly
sell to retailers. However this kind of trading is restricted to the local areas only. The
few wholesalers in Madhubani would purchase Makhana pop directly from the
growers/processors. In some cases they get it processed on contact basis from
processors and will hoard the pop in their person storages. They would sell to
wholesaler in Kanpur, Delhi, and Varanasi etc. as and when the trading is agreed
upon. The wholesale traders in Madhubani have also credit-cum-product inter-linkage
in their transactions with wholesalers in Kanpur, Delhi, and Varanasi etc.

x. Storages/Godowns
Storages for two different products, viz, Guri and Makhana pop are required in
makhana trade. At the farmer’s level the guri is stored in an indigenous manner with
construction of temporary structures in their homes. In that, they would construct a
temporary pucca platform of required dimension with small bunding from different
sides. They would spray water regularly to avoid drying of the Guri seed. This
process continues till the guri is processed into makhana pond in case of the
wholesale trader since they hoard larger quantity of guri, the size of their storage
structure is larger but they also follow the same technique of spraying water from
time to time during the day to avoid drying of the Guri seed which will adversely
affect the quality of makhana pop. In the absence of any systematic storage
arrangement which could control the temperature and avoid labour cost, the farmers
did express difficulties of storage and felt the need for some storage arrangement.

In the case of Makhana pop since it occupies more space the farmer would simply
store it in gunny bags and put them on some raised wooden platform in their own
houses. Since the makhana pop is completely dried, it is not affected by extreme
temperature and the humidity levels. Rat menace was commonly complained by the
farmers. At the wholesale level in Madhubani, the Makhana pop was stored in gunny
bags, placed in large pucca storage house owned personally by the trader.

xi. Transport Connectivity and Accessibility level

From ponds to the farmhouse, guri was often transported manually by small pond
cultivator. However in the case of large pond cultivators, they used tractors owned or
hired. Small traders used bullock carts and horses for local transportation. The traders
collecting guris from far-off places used small trucks, vans or rail links for
transportation of guri from one place to another.

The transport of Makhana pop form village to wholesale trader or from one
wholesaler to another wholesaler in the town was mostly on tyre carts or tractors.
Given the poor road conditions and village connectivity, it looks almost the whole
day for the grower/trader in distant villages to cover the distance of 15-20kms. In the
case of transportation from Madhubani to distant places like Kanpur and Delhi it was
mostly transported through railway where the charges were made on volume basis,
which inflated the cost of transportation significantly. In the absence of direct broad
gauge link from Madhubani to other destination, it involves charges of goods at
Darbhanga creating delays in delivery of goods. It was also transported through
trucks to longer destination which involve higher transport cost.
 xii Risk Hazards
Makhana cultivation was exposed to several risk hazards. Production less due to
drought and flood was the most serious risk hazard. One flood will sweep away the
entire standing makhana plant adversely affecting the output by 50 to 60 per cent.
Price risk was still worse. Seasonal fluctuation as well as yearly fluctuation in the
price of Makhana pop was also large de motivating the Makhana growers and
adversely affecting area as also productivity levels of Makhana.

xii. Legal Environment

The production and trade of Makhana Guri and pop fell under the ambit of several
legal acts/provisions viz. Agricultural Produce ( Grading & Marketing) act 1937 and
1986 ; production of Food Adulteration act1954 , 1964,1976,1986; Standards of
Weights and Measures Act 1976; Consumer Protection Act 1986; Bureau of India
Standards Act 1986 and Food Product Order 1955, 1977. However the application of
these acts in Makhana production as well trade was completely absent. The farmers
were free to sell their output to any one at any place. Similarly, the wholesalers were
freely trading Makhana pop.

xiii. Value Addition

Makhana pop is consumed mostly in raw pop form with different end uses. The
secondary processing of Makhana pop into snacks food or any other product was
almost absent, as only few small Makhana processing units at Madhubani, Katihar
and Patna were operating with small capacity. Once of them has been closed for
variety of reasons. The other one is making a modest business. With not even one per
cent of Makhana pop being used for secondary processing into snacks food, etc. the
value additions through secondary processing in Makhana was almost negligible.

Table 5: Conversion ratio of Guri into Makhana acceptable of Wholesale

Processors /Traders

S. No. Quantity of Acceptable quantity of Makhana Balance Makhana as

 Guri to Wholesale processors kind was the processor
1 120 kg 40 kg. (1/3) 9.11 kg

FLOW CHART OF MAKHANA PROCESSING

Makhana Seed – Moisture 37% (As per fresh weight)

↓

Sun Drying – Moisture 31 %

↓

Storage (Water spray at few minute intervals)

↓

Grading as per size

↓

First Roasting (till moisture 20.8 %)

↓

Keeping at Room temperature for 40-60 hours

↓

Second Roasting (till moisture 10-12 %)

↓

Breaking of Seed Coat by Thaapi

↓

Separation of Pop and Seed

↓
 Grading of Pop as per size
↓

Packaging in different size gunny bag (9-15 Kg)

↓

Marketing/Trading

xiv) Production of Makhana - Guri and Pop

Bihar accounts for over 85 per cent of the Makhana production of the country which
resulted into thrust area for taking up the task and identifying the constraints in the
export of Makhana from the state. Though data regarding exports are not available, as
per a rough estimate 50,000 tonnes of Makhana worth Rs 250 at farm gate and 550
crores in market are produced annually.
xv) Segments of Demand Absorptions
The data on the existing end-use of Makhana pop by segments as is not available
whereas it is assumed that its current consumption, absorption is more in socio-
religious functions as also sweetmeat and industrial use. Its presence in the export
market is virtually absent. Value addition or high product innovations are not
common and its promotion is required.

xvi) Demand projection of Makhana

However going by the perception of the Makhana pop processors as also wholesalers,
the potentials to enlarge its demand absorption in export as well as snacks food and
pharmaceutical segments in the domestic market seem to be large. This is on account
of the fact Makhana is essentially an original product with good dietary and medicinal
properties to generate adequate export demand particularly in the European and
American Countries. More important the initial experience of making pop processor
at Patna in the form of snacks food production as well as pharmaceutical products viz.
protein powder (Horlicks) is quite encouraging. It is felt that even if it capture 10% of
the existing snacks and horlicks market it will absorb a large part of the Makhana pop
production. According to rough estimation it is expected that in the ensuing years the
demand for Makhana pop would remain stagnant for socio-religious functions as also
sweetmeat industry. But it may witness 100-200% growth in the snacks food segment
as also pharmaceutical, medicinal and export segments.

CHAPTER IV

RECOMMENDATIONS

9 Integrated Fish cum Makhana Cultivation should be promoted which will

play vital role in livelihood enhancement of poor Makhana growers.

9 Good Agricultural Practices as recommended by National Research Centre,

Darbhanga should be promoted through cluster based approach.

9 Mechanization of harvesting, post harvesting and processing is required.

NRC has already developed mechanized system of makhana pop processing
which will be started in coming few months.

9 Institutional credit facilities at two intervals such as during leasing of

pond/land and irrigation are required.

9 Training/Capacity building on makhana processing specially from guris to

pop is required.

9 Contract farming based on centralized model may be adopted. As the

processor buys the commodity from a large number of farmers under
contract with the firm.

9 As there is very less application of chemicals and fertilizers so this crop can
be taken as Organic produce and its promotion is required accordingly.

9 The Agri- Export Zone Hazipur, could be widened to include export

promotion of Makhana products as well under partnership of makhana
growers/processors, value adding processing firms to get fiscal incentives in
terms of tax concessions under the schemes of government of India.

9 The traders/wholesalers/retailers are not aware about the procedures of

export. So, training for creating awareness regarding the export
procedures/ISO certification etc is required.
 ANNEXURES

Annexure I : Schedule of Makhana growers interviewed.

Annexure II : Schedule of Traders interviewed.
 Farmers Schedule

1. Name of Farmer: -

2. Name of village: - Taluka District

3. Area under Makhana

4. Name of the variety grown

5. Year of plantation

6. Number of years production taken

7. Yield of Makhana

Sr. Year Area in Total Yield / Production Rate Total

No. Ha. Production ha Sold (Kg) Rs./ Income
Kg. Kg (Rs)
1 2006
2 2005
3 2004
4 2003
5 2002

9. Packing material used:-

10. Cost of Packing Material

11. Storage facility

12. Transport facility

13. Places of marketing

14. Name of traders and their address to whom you sell your produce?
15. Have you direct contract with traders?

16. Are you exporting makhana or through traders/associations?

17. If yes, Name the trader/association.

18. Have you entered contract farming with traders?

If yes, what are terms and conditions:-

19. Price received for the last five years?.

Sr. No. Year Domestic Price Export price

1 2006
2 2005
3 2004
4 2003
5 2002

20. Have you received special instruction from Exporting traders about makhana
cultivation< if yes, please specify

22. Cultivation practices adopted by the growers (Discussion).

 EXPORTERS/ TRADERS SCHEDULE
A. Exporter’s Profile:

1.(a) Name:

(b) Address:

(c) Tel:

(d) Fax:

(e) email:

2. Year of Establishment:

3.Legal form of the Unit/ Ownership:

Corporate (1); Partnership (2); Proprietorship (3); Co-operative (4).

4.(a) Name of Contact Person:

(b) Designation:
(c) Personal Tel. No., if any

5. Horticultural Exports: (Major Horti. Produce Exported)

Mango (1); Grapes (2); Orange (3); Banana(4);
Other fruits - specify -------- (5) Onion (6); Other Vegetables, Specify ------- (7);

B. Export details:

6. Trends in Makhana Exports (For last 5 Years)

2002-03 1.
2.
3.
4.
Sub-total
2003-04 1.
2.
3.
4.
Sub-total
2004-05 1.
2.
3.
4.
 Sub-total
2005-06 1.
2.
3.
4.
Sub-total
2006-07 1.
2.
3.
4.
Sub-total

7. Seasonality of Exports

(a). Do you have seasonality in Exports? Yes (1); No (2).

(b) If Yes, Specify the period/s of Name of Country Period (from - to)
Exports
Jan (1); Feb (2) ……… Dec (12). 1
2
3
4
5

8. (a) Demand of Makhana in Export Market: -

Sr. No. Month Name of the countries Name of competing countries

1 January

2 February

3 March

4 April

5 May

6 June

7 July

8 August

9 September

10 October

11 November
 12 December

8. (b) Varieties of Makhana having Demand in Export Market: -

Sr. No. Name of the Countries Name of Varieties

9 . Procurement of Makhana

Main districts from which pomegranates procured

(a). Name of District

(c). Quantity procured (in M Tons.)
(c). Annual Value (in Rs Lakh)
(d). Whether supply adequate (Y-
1/N)
(e) Whether quality is good

(f) If not, please specify why and the measures taken to acquire uninterrupted supply.

(g) Please enumerate problems in procurement

(h) Quantity of exportable makhana from total quantity purchased / Procured.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
__________________
C. Financial Information

I. Source of Finance (in Rs.)

Particulars March 2004- March 2005-06 March 2006-

05 07
Paid Up Capital
Borrowing
(i)Institutional sources
(ii)Non-institutional sources
Any other

II. What are the problems faced by you in getting finance facility from financial
institution

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________________________

III. Cost Structure for Makhana Exports (in Rs.)

Cost March 2004- March 2005-06 March 2006-

05 07
Variable Cost
Raw Material
i)
ii)
iii)
Labour
Utilities
(Power, Water, etc)
Packing Materials
Maintenance
Fixed Costs
Transport
Loading and unloading
Selling & Distribution Costs
Taxes
Clearance
Others:
Total Costs

D. Export Channels

10 (a) Do you sell makhana under your brand name? Yes-1; No-2.
(b) If No please mention the name of the
company for whom the fruits are exported:

11. Marketing Strategy Overseas:

Export trading house (1); Overseas Importers / Distributors (2);
Importing Agents (3); Foreign Processing units (4); Own Office (5).

12(a) Has your export strategy undergone a major change during the
last five years? Yes- 1; No- 2.

(b) If yes, please indicate the changes and reasons for the change.

13. Please give break up of average FOB export selling price in percentage.

Head After WTO

( 1995-2007)
a. Raw Materials
b. Processing Costs
c. Packaging Costs
d. Transportation
e. Logistics excluding transportation
f. Marketing and overheads

E. Awareness on WTO and its Impact

14(a) Are you are aware of the agreements/ regulations under WTO? Yes-1; No-2.

(b) Are you aware of standards applicable in importing country/ies? Yes-1; No-2

(c) Are you aware of Codex Standards? Yes-1; No-2

(d) Are you aware of Hazard Analysis at Critical Control Points (HACCP)? Yes-1; No-2

(e) Are you aware of ISO 9000 and ISO 14000? Yes-1; No-2

14(b). The impact of WTO agreements on Makhana exports:

Areas of Impact Agreements/ Regulations Impact

having impact
Exports

Exports realizations

Technology in use

Prices realised

Procurement cost of
fruits

Quality of fruits

14(c) What has been the impact of changes in import tariff on your cost
structure,
post-WTO?

Cost has gone up (1); Cost has gone down (2); No change in cost structure (3).

15. Constraints faced for growth of exports of Makhana from India:

Parameters Constraints Suggestions

I. Raw Material
Demand &
Supply
II.Quality

III. Technology
IV. Cost
competitiveness

V. Quantity

VI. Market
development

VII. Financial

VIII. Logistics /
Infrastructure
Pre-cooling
Storage: Farm
Cargo
Export
terminals

In-land
transportation
Cargo terminal
facilities
Air/Sea freight
charges
IX. Legal

X. SPS /
Certification
and testing

XI.
Government
policies

XI Importing
Countries
policies
XII. Specific
Trade
Barriers

XIII. Taxes /
Cess

XIV. Quota.

XV.
Commission.

XVI. Country
Preference.

XVII. Any
other, specify

Note. Suggestions should be made indicating specific measures that are necessary to
improve export performance like Raw material quality and pricing, Technology up-
gradation, Training needs (under Human Resource), Generic advertisement,
Infrastructural support, Market Information (all under Market Development),
Technology up-gradation fund (under Financial), Simplification of Procedures of
obtaining various certificates (under Legal), Needs for Subsidies / Government
intervention (under Government) etc.( Special sheet may be attached if space is limited)

16. Threats facing the sector as a result of various agreements/ regulations:

Threats Measures taken

(i). Availability of low-cost makhana in the export
markets
(ii). Increased flow of foreign investment in
importing country / other exporting country
(iii)Rejection of exports due to non-tariff barriers
and TBT like child labour, environment issues
and obsolete manufacturing standards
(iv). Free imports of products reserved for
production in SSI sector
(v). Others (specify)

17. Opportunities opened for your sector as a result of liberalization:

Opportunities Advantages availed of/ likely to

 be availed
(i). Availability of cheap raw materials from outside
(ii). Easy import of modern machineries & equipments
(iii). Widening of international markets (new export
markets)
(iv). Increased flow of foreign investment
(v). Others (specify)

18. Effects of WTO agreements on exports

( Sales trend in export markets in (Name/s of the country) during post-WTO regime
Upward (1); Downward (2); No change (3).
Country 1.
Country 2.
Country 3.

19. Which countries are offering strong competition to makhana export

In export market Competitors

I.

II.

III.

IV.

2o. Measures taken/ being planned to be taken by you to overcome the impact of WTO
agreements in domestic and export market:

Product Agreement Countries involved Measures taken

In export market Countries where affected
I.

II.

III.

IV.

V.
(Select the Measures taken/ being planned to be taken from the following and elaborate)

(i) Enhance competitiveness

(ii) Upgrade technology and modernize
(iii) Expand capacity to reach optimum levels
(iv) Improve quality of products and acquire quality certification
(v) Invest more in R&D
(vi) Diversify into other related products
(vii) Bring about backward integration
(viii) Enter into strategic tie-ups with large indigenous companies/ MNCs
(ix) Adhere to stricter environmental standards
(x) Compliance with proper labour norms
(xi) Enter into marketing arrangements with companies based abroad
(xii) Merger with other to withstand competition.
(xiii) Reduce cost of production
(xiv) Others (pl. specify)

Please elaborate:

21. (a)Do you feel that your foreign competitors are enjoying certain advantages
which give them an edge? Yes-1, No-2.

(b) If so, what are the advantages?

Economies of scale (1); Availability of modern technology (2); Government
subsidies and protective policies (3); Cheap and easy availability of raw material
(4) Advanced packaging (5); Grading and standardization (6); Organized
marketing network (6); Others (specify) (7)

(c)If you think that you are having advantages over them, specify them:
Cheap labour (1); Cheap raw material (2); Indigenous low-cost technology (3);
Other (specify) (4)

(d). What are the disadvantages you are facing in post-WTO

era/
Regulatory measures in foreign importing countries (SPS/TBT) (1);
Price Competition (2); Others (specify) (4).

22. Quality Standards

 Quality specific Parameters set out by importing countries.

Sr. No. Particulars Quality Standards

1 Size
2 Colour
3 Packaing
4 Storage
5 Chemical Residues
6 Test
7 Trade Mark
8 Certificates

(a) Do importers specify quality standards? Yes- 1, No- 2.

(b) ) If yes, have you applied the method? Yes- 1, No- 2.

(d) If No, Constraints and reasons:

Cost constraint (1); Documentation hazards (2); Inadequacy of service providers (3);
Not required (4); Others (5).

(c) Have you applied for ISO certification? Yes- 1, No- 2.

(e) Will implementation of the regulations as ISO 9000 / ISO 14000 /HACCP / SPS
have the following effect?
(i) Increase in Cost of exports: Yes- 1, No- 2., (if yes, by %)
(ii) Increase in Capital Investment: Yes- 1, No- 2 ., (if yes, by %)
(iii) Decline in Capability of Investment: Yes- 1, No- 2
(iv) Backward integration for procurement: Yes- 1, No- 2
(v) Increase in export: Yes- 1, No- 2
(vi) Increase/ decrease in prices of products processed: Yes- 1, No- 2
(vii) Competitiveness: Yes- 1, No- 2

23. Certification of Products exported:

(a) Do you undertake Pre-export certification? Yes- 1, No- 2

(b) Is number of existing certification agencies adequate? Yes- 1, No- 2

(c) ) Name of your certification

agency
Location

(d) Do you regularly test exportable fruits/products? Yes- 1, No- 2

(e) Average annual cost for product certification: Rs. Lakh/
ton

(f) What do you think about the certification cost? High- 1, Reasonable- 2.

24. Packaging and Storage Regulations:

(a) Has there been a change in packaging material utilized in view of stricter
environment laws in importing countries? Yes- 1, No- 2

(b) How the improvement was effected?

Through domestic availability (1); Through imports (2).

(c) Rise in annual cost of production due to these changes (in percentage)

(d) Please indicate the nature of improvement, if any.

Packaging Material used Packaging techniques Annual average cost/ year

Traditional Improved Traditional Improved Traditional Improved

25. What changes have you made in your production processes, work conditions, storage
arrangements, packaging of makhana to meet the international environment standards?
a.

b.

c.

d.
26. Specify strengths/ weaknesses that would assist / hamper due opening of world
markets.

Strengths Weaknesses
1.
1.
2.
2.
3.
3.
4.
4.

F. Requirement of Assistance from Government and other agencies

27. What are the measures (including policy initiatives), you feel, should be taken from
the part of the Government to boost exports:

28. Please elaborate on what specific help you expect from APEDA to become
competitive in the international market.

29. What type of assistance/ infrastructural support/ common facilities do you expect in
order to face the challenges: (Please rank the main parameters enumerated as (a) to (j)
alphabetically i.e., A-J and sub-parameters enumerated as (i) to (v) numerically i.e., 1-5
in the order of importance)

Type of Assistance Order of

Importance
(a) Financial assistance for capacity expansion/ technology
upgradation/
export with
(i) Higher quantum of finance
If required, pl. indicate:
Purpose:
Est. Year:
quantum:
(ii) Reduction in interest rate
(iii) Longer repayment period
(iv) Special financing scheme related.
(v) Any other (specify)
(b) Timely availability of adequate quantity of fruits
(c) Training (in)
(i) Quality control measures
(ii) Modern Packaging Techniques
(iii) Product Development
(iv) Information Technology

(d) Availability of adequate and low-cost service of certification

(e) Availability of low-cost modern packaging facilities
(f) Reduction in excise/ customs duty for import of
(i) Raw Materials / chemicals
(ii) Machineries
(g) Simplified procedures for inspection and obtaining various
certificates
(h) Market related information
(i) Tying up with large units/ Export houses
(j) Any other (specify)

(b). Please briefly state in what way the assistance on these can be given.

30. Any other comments relevant for the purpose:

31. Investigator’s Remarks:

Date: Investigator’
Signature: