Business Plan for Makhana Clusters in Bihar 1 INDEX BUSINESS PLAN FOR MAKHANA CLUSTERS IN BIHAR .................................... 1 EXECUTIVE SUMMARY .............................................................................................. 4 Botany ......................................................................................................................... 8 Distribution and Habitat ............................................................................................. 9 Nutritional Value ...................................................................................................... 10 Uses ........................................................................................................................... 10 Cultivation and Harvesting of Makhana................................................................... 10 Processing of Makhana............................................................................................. 11 OBJECTIVE ..................................................................................................................... 12 APPROACH & METHODOLOGY ....................................................................................... 13 MAKHANA SECTOR ........................................................................................................ 18 CLUSTER MAPPING.................................................................................................... 19 CLUSTER DIAGRAM ....................................................................................................... 20 DISTRICT: DARBHANGA ................................................................................................. 20 District Profile .......................................................................................................... 20 Cluster spread and Area ........................................................................................... 21 Cluster Profile ........................................................................................................... 22 Major Markets .......................................................................................................... 23 DISTRICT: MADHUBANI ................................................................................................. 23 District Profile .......................................................................................................... 23 Cluster spread and Area ........................................................................................... 24 Cluster Profile ........................................................................................................... 26 Major Markets .......................................................................................................... 26 DISTRICT: KATIHAR ....................................................................................................... 27 District Profile .......................................................................................................... 27 Cluster spread and Area ........................................................................................... 27 Cluster Profile ........................................................................................................... 29 Major Markets .......................................................................................................... 29 DISTRICT: PURNIA.......................................................................................................... 29 District Profile .......................................................................................................... 29 Cluster spread and Area ........................................................................................... 29 Cluster Profile ........................................................................................................... 31 Major Markets .......................................................................................................... 31 SUMMARY ...................................................................................................................... 32 SOCIO-ECONOMIC PROFILE OF MAKHANA CULTIVATORS ............................................. 35 Social System ............................................................................................................ 35 Economic activity ...................................................................................................... 35 FISHERMEN COOPERATIVE SOCIETIES ............................................................................ 36 LEASE SYSTEM OF FISH CUM MAKHANA WATER BODIES ............................................... 36 CROP MANAGEMENT OF MAKHANA IN THE CLUSTERS ................................................... 38 Cultivation Practices ................................................................................................ 39 Estimated Cost of Makhana Cultivation ................................................................... 40 Processing of Makhana............................................................................................. 42 2 Dynamics of Processing Operations ......................................................................... 42 Process Flow ............................................................................................................. 43 Constraints in Makhana Production and Processing ............................................... 45 CREDIT DELIVERY MECHANISM .................................................................................... 47 RESEARCH INSTITUTIONS ............................................................................................... 47 MARKETING SYSTEM ..................................................................................................... 48 Retail Marketing ....................................................................................................... 48 Wholesale Marketing ................................................................................................ 49 MARKETING CHANNEL .................................................................................................. 50 MAKHANA VALUE CHAIN .............................................................................................. 50 Farmer’s Realization ................................................................................................ 51 Wholesaler’s cost and margin .................................................................................. 51 Price Trend of Makhana Pop .................................................................................... 53 BUSINESS OPERATIONS IN CLUSTERS ................................................................ 55 PROCUREMENT OF MAKHANA ........................................................................................ 55 Payment System ........................................................................................................ 55 STORAGE OF MAKHANA ................................................................................................. 56 Seeds ......................................................................................................................... 56 Makhana Pop ............................................................................................................ 56 Constraints ................................................................................................................ 57 GRADING OF MAKHANA ................................................................................................ 57 Packing for retail marketing ..................................................................................... 58 Packing for wholesale marketing.............................................................................. 59 Pack Sizes and Branding .......................................................................................... 59 Constraints ................................................................................................................ 60 SWOT ANALYSIS OF MAKHANA SECTOR ...................................................................... 60 PROPOSED BUSINESS PLAN FOR MAKHANA CLUSTERS ................................ 61 1. Integrated facilities for Makhana processing ....................................................... 61 1.1 Grading and Packaging Facilities ...................................................................... 62 1.2. Storage Infrastructure development .................................................................. 63 1.3 Processing and Value addition ........................................................................... 65 2. Marketing Linkage and Brand Promotion:........................................................... 65 3. Training and Skill development of makhana growers/processors ........................ 70 4. Pond Development ................................................................................................ 71 5. Project Management ............................................................................................. 71 6. Project Implementation for capacity building component .................................... 72 IDENTIFIED PROJECTS .................................................................................................... 75 3 Executive Summary 1. Background Gorgon nut or fox nut, commonly known as makhana, is an aquatic crop with large floating leaves, producing bright