The recent decision by the United States government to impose a 25% import duty on select Indian goods is likely to hit Bihar’s agricultural exports hard. Among the most affected commodities is makhana, also known as fox nuts, which is a significant export from Bihar. The move is expected to disrupt the trade momentum that the state had built in recent years, especially with the American market.
Export Impact: Makhana Takes a Hit
Until now, the United States was Bihar’s largest importer of makhana, accounting for nearly 25% of the total exports of the product. Recent data indicates that around 600 tonnes of makhana were exported from Bihar in a single batch, contributing to an annual trade value of approximately ₹150 crore. With the revised tariff structure, the cost of makhana in the US market will witness a sharp rise.
Previously, the US levied only a 3.5% import duty on makhana. However, under the new policy announced by President Donald Trump, effective August 1, 2025, that duty has jumped to 25%. This substantial hike will significantly raise the retail price of makhana in the American market, making it less competitive compared to locally available alternatives or imports from other nations.
Makhana Prices May Skyrocket in the US
According to exporters like Satyajit Kumar Singh, who has been actively involved in makhana exports, the price of makhana in the US could rise by a huge margin. As of now, processed makhana sells at around ₹8,000 per kilogram in the US, while raw makhana is sold at nearly ₹7,000 per kilogram. With the new tariff, American buyers are expected to negotiate a reduction of up to 25% in export prices, which exporters claim is economically unviable.
Given the strong demand for makhana in the international health food market, especially for its nutritional benefits and low-calorie content, reducing the price to absorb the tariff may not be practical for Indian exporters. This will likely lead to a drop in exports unless alternative markets are explored quickly.
Bihar’s Agricultural Export Network
Apart from makhana, Bihar exports a variety of agricultural and cultural products to different international markets. These include basmati rice, turmeric, mangoes, lychee, handloom fabrics, and traditional Mithila paintings. Among these, basmati rice finds a significant market in the Gulf nations, while mangoes and lychees are exported to European and Middle Eastern countries.
The Trump Tariff, while directly affecting makhana, is also expected to increase the import costs of these other items, indirectly impacting their demand in the US market. Although these products are currently subject to lower import duties, the sudden tariff revision has raised fears among exporters that similar hikes could follow.
Rising Concern Among Exporters
Exporters across Bihar are worried about the long-term implications of this new tariff regime. With makhana and other products becoming costlier in the US, exporters fear that buyers will either shift to cheaper alternatives or pressure Indian suppliers to lower their prices. Both scenarios pose challenges for the state’s export economy.
To mitigate this risk, exporters are now looking to diversify their markets. The European Union and South Asian countries are being seen as viable alternatives. Moreover, recent trade discussions with the United Kingdom have opened doors for future makhana exports to Britain, which may help offset some of the losses expected from the US market.
Search for New Markets Underway
Bihar’s makhana producers and exporters are actively exploring newer destinations where the product could find a strong consumer base. Countries in Southeast Asia, such as Singapore and Malaysia, and even parts of East Africa, have shown interest in importing Indian makhana. European countries, where healthy snacks are in demand, could also serve as potential buyers if trade barriers are minimal.
Exporters believe that with proper marketing and government support, makhana could penetrate these untapped markets. However, establishing trade routes and consumer trust in these new territories will require time, effort, and competitive pricing.
Government and Trade Body Response
The central and state governments are yet to issue a formal response to the tariff hike, but trade bodies and agricultural cooperatives are already in talks to draft a collective appeal. They are seeking intervention to negotiate favorable terms or at least extend support to buffer the impact of rising costs and shrinking margins.
Industry experts argue that subsidies, logistics support, and financial incentives will be essential in helping exporters stay afloat amid these changes. Additionally, a focused push toward branding Bihar’s makhana as a premium international product may help in retaining its appeal despite the higher prices.
Strategic Shifts and Innovation Needed
In the wake of the new US tariff policy, Bihar’s exporters are recognizing the need for strategic shifts in their export models. From modern packaging and branding to entering the organic food segment and seeking GI (Geographical Indication) status for makhana, various measures are being considered.
Some exporters are also investing in research to innovate new value-added makhana-based products, such as flavored fox nuts, makhana cereal mixes, and health bars. These products could cater to niche health and organic markets in countries where tariffs remain low or manageable.
The tariff hike imposed by the United States marks a significant challenge for Bihar’s export economy, particularly for its makhana trade. With 25% of makhana exports previously going to the US, the impact is direct and severe. Exporters must now adapt quickly to shifting market dynamics, invest in diversification, and work closely with trade authorities to explore new opportunities.
As Bihar navigates this uncertainty, the resilience and innovation of its agricultural entrepreneurs will determine the future of makhana exports. Whether it’s expanding into new global markets or reshaping product offerings, the road ahead demands swift and strategic action.
