On cards, a code to unlock makhana's full potential

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Subscribe to enjoy similar stories. New Delhi: The ministries of commerce and agriculture are working on securing a globally accepted HSN (harmonized system of nomenclature) code for foxnuts to boost exports of the popular aquatic crop, two people aware of the matter told Mint. Makhana, as it is called in India, has gained global recognition for its nutritional value, but is currently exported as a “dry fruit", making it difficult for authorities to accurately track exports.

The first step to address this problem would be to secure the correct HSN code – the international system for classifying goods in trade. It is used to standardize the identification of products across countries, making taxation and documentation simpler. This follows the government’s decision to set up a Makhana Board in Bihar, one of several schemes for the state announced in the budget for 2025-26.

Bihar accounts for over 90% of India’s supply. To be sure, the high-protein, low-fat crop, which grows in lakes and ponds, does have a GI tag. The makhana market in India has been witnessing steady growth, driven by a rising demand for healthy snacks.

According to IMARC Group, a market research firm, the market size reached ₹7.8 billion in 2023 and is projected to expand to ₹18.9 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.7% during 2024-2032. “The process of HSN code approval is in the final stage, and we are hoping it will be allotted in the next few months, most probably by April," said one of the two people mentioned above. The process of obtaining an HSN code involves a study by agencies like the Central Board of Indirect Taxes and Customs (CBIC) and consulting industry experts.