Makhana Business in Bihar: FSSAI, GST, PMFME Subsidy and Export (2026 Guide)
A makhana business in Bihar needs FSSAI registration (or a central licence if it exports), GST registration once turnover crosses the limit, and, for most processors, Udyam registration to reach the subsidies. Packaged makhana attracts 5% GST since 22 September 2025, and roasted, flavoured and sweet makhana are also at 5%. A new processing unit in an ODOP makhana district such as Darbhanga or Madhubani can get a 35% credit-linked subsidy of up to ₹10 lakh under PMFME, and the National Makhana Board set up in September 2025 runs a ₹476 crore development scheme to 2030-31. This guide covers each stage of the business, from pond to export, with the tax and licence points that apply to each.
Makhana at a glance
- Bihar grows about three-quarters of India’s makhana: around 60,000 tonnes of 80,590 tonnes in 2025-26.
- Main districts: Darbhanga, Madhubani, Purnea, Katihar, Saharsa, Supaul, Madhepura, Araria and Kishanganj.
- Prices roughly doubled from about ₹500 a kg in 2020-22 to about ₹1,250 a kg in 2025.
- Mithila Makhana has carried a GI tag since August 2022.
- Exports were about 7,265 tonnes worth ₹193 crore in 2025-26, mainly to the US, Canada, the UAE and the UK.
Which stage are you in? The tax treatment follows it
| Activity | Income tax | GST |
|---|---|---|
| Growing makhana and selling the raw seed (guri) from your own ponds | Agricultural income, exempt | An agriculturist selling his own produce need not register |
| Popping your own harvest | Grey area; keep separate records | Depends on turnover and packaging |
| Buying seed and popping, grading or roasting it | Business income | Register once turnover crosses ₹40 lakh (goods) in Bihar |
| Flavoured, branded or packaged makhana | Business income | 5%; register as above |
| Trading and export | Business income | Exports zero-rated under LUT |
Agricultural income stays exempt under the Income-tax Act, 2025, and its definition still covers limited processing to make produce fit for market. Popping is labour-intensive processing, and no ruling has settled whether a farmer’s own popping counts as agricultural, so keep farming and processing accounts separate.
GST on makhana after 22 September 2025
| Product | GST |
|---|---|
| Dried makhana, pre-packaged and labelled | 5% |
| Roasted or roasted-and-salted makhana | 5% |
| Flavoured makhana snacks and namkeen mixes | 5% (earlier 12% or 18%) |
| Sugar-coated makhana | 5% |
| Loose, unbranded makhana | Treated as nil-rated under chapter 8, but see the note below |
Since July 2025 the customs tariff places makhana under heading 2008, with separate codes for popped makhana, makhana flour and other forms. GST follows the tariff, and heading 2008 does not carry the nil rate available under chapter 8. Packaged makhana is at 5% either way, but a seller of loose popped makhana should take advice before treating sales as exempt.
FSSAI
- Basic registration up to ₹1.5 crore turnover, and a state licence up to ₹50 crore, under the limits in force from 1 April 2026.
- Exporters need a central licence whatever their turnover.
- Registrations and licences no longer need renewal, and pre-inspection has been replaced by risk-based inspection.
- Packaged makhana must follow the FSSAI labelling rules: name, ingredients, net quantity, FSSAI number, batch, best-before date and nutritional information.
Subsidies and schemes
PMFME (PM Formalisation of Micro Food Processing Enterprises)
- 35% credit-linked capital subsidy, up to ₹10 lakh per unit; the owner puts in at least 10% and the rest is a bank loan.
- Makhana is the One District One Product (ODOP) item for Darbhanga, Madhubani, Araria, Katihar, Saharsa and Supaul. New units must make the ODOP product to qualify.
- Farmer producer organisations and cooperatives get a 35% grant; self-help group members get ₹40,000 seed capital each.
- The scheme ran to September 2026, and the ministry has proposed continuing it for 2026-31. Check its status before you apply.
National Makhana Board
- Announced in the Union Budget 2025-26 and launched at Purnea in September 2025.
- Runs the Central Sector Scheme for the Development of Makhana: ₹476.03 crore from 2025-26 to 2030-31, covering production, post-harvest work, value addition, branding, exports, and links to other central schemes for FPOs.
Bihar schemes
- Cultivation: for 2025-27 the state has announced support of 75% of a ₹97,000 per hectare cost (₹72,750) for improved varieties Swarna Vaidehi and Sabour Makhana-1, in 16 districts.
- Bihar Agriculture Investment Promotion Policy (BAIPP): makhana is a focus sector, with capital subsidy of 15% for individuals, firms and LLPs and 25% for farmer producer companies, and more for SC, ST, EBC and women investors, on projects of ₹25 lakh to ₹5 crore.
- Machines: ICAR’s National Research Centre for Makhana at Darbhanga has licensed machines for washing, grading, roasting and popping that cut processing from two or three days to about 20 hours.
Exporting makhana
- Get an Import Export Code from DGFT.
- Register with APEDA for a Registration-cum-Membership Certificate through the DGFT portal.
- Get an FSSAI central licence.
- File a Letter of Undertaking (RFD-11) each year to export without paying IGST.
- Use the right export code: 20081921 for popped makhana, 20081922 for flour, 20081929 for other forms.
- Check phytosanitary and labelling rules for the destination country.
- Use the Mithila Makhana GI tag where your produce qualifies; APEDA’s first sea shipment of GI makhana went to Australia in August 2026.
Setting up the business
- Structure: a proprietorship is enough for a small popping unit; a private limited company or LLP suits a brand that wants investors or exports; an FPO suits a group of farmers.
- Registrations: Udyam, FSSAI, GST, a current account, and IEC and APEDA for export.
- Books: keep purchase records from farmers (with their details, as they are unregistered), yield records from guri to popped makhana, and stock records, which the subsidy claims and GST officers both ask for.
Frequently asked questions
What is the GST rate on makhana?
5% on packaged, roasted, flavoured and sweet makhana from 22 September 2025. Loose makhana has been treated as nil-rated, but the 2025 change in tariff classification makes that less certain for popped makhana.
Is income from makhana farming taxable?
Selling makhana you grow is agricultural income and exempt. Buying seed to pop, roast or pack is business income.
How much subsidy is available for a makhana processing unit?
Under PMFME, 35% of the project cost up to ₹10 lakh for a unit in an ODOP makhana district, linked to a bank loan. Bihar’s BAIPP offers 15% to 25% capital subsidy on larger projects.
Do I need FSSAI to sell makhana online?
Yes. Basic registration up to ₹1.5 crore turnover, or a state licence above that; exporters need a central licence.
TAXAJ’s Bihar office in Benipur, Darbhanga sets up makhana businesses and FPOs: Udyam, FSSAI, GST, PMFME project reports, books and export registrations. See our Darbhanga office, our project report service, or our guide to Mukhyamantri Udyami Yojana after selection.
Last updated 26 October 2026. Sources: PIB backgrounder on makhana (August 2026) and PMFME releases (2025 and May 2026); Notification 9/2025-Central Tax (Rate); CGST Act, 2017, section 23; Finance Act, 2025 customs tariff and DGFT Notification 09 of 19 May 2025; FSSAI order of 13 March 2026; APEDA makhana dashboard (2026); Bihar horticulture directorate (BAIPP); ICAR; Lok Sabha answer on ODOP products. General information only; check your own facts with us before you invest.
