How Tariffs Impact Fox Nuts Exports and What It Means for India’s Economy
Katihar, India – The economic landscape for Indian exporters has recently transformed, especially in the case of fox nuts (makhana), as the United States has implemented a significant tariff increase on Indian goods. This comes amidst the challenges faced by traders like Ravjit Singh, a leather garment trader residing in Denver, Colorado, who has witnessed surging grocery prices and the direct impact of tariffs on his household.
The Rise of Tariffs
Richard Trump’s administration initiated a 25 percent tariff on Indian goods, which was later escalated to a staggering 50 percent. According to Singh, this sudden spike has caused the family’s monthly expenditure to skyrocket from approximately $500 to $900, with the prices of staple items like lentils, basmati rice, and particularly, fox nuts, doubling in cost. Previously, a 25-gram pack of fox nuts was priced at $2, but recent hikes have driven the price up to $4.
Fox nuts, the popped kernels from water lily seeds, are not just beloved snacks in India but also recognized for their nutritional value. They are rich in protein, calcium, antioxidants, and vitamins, earning the nickname "superfood" due to their immunity-boosting properties.
The Effect on Exports
The tariffs have affected several Indian sectors reliant on exports, including textiles, shrimp, and notably, fox nuts. Sales of this popular snack to the United States have plummeted by nearly 40 percent, creating challenges for exporters such as Satyajit Singh, who oversees a significant portion of the global market.
Despite the downturn in the U.S. market, hope persists among Indian suppliers. New markets are emerging, with nations such as Spain and South Africa showing increasing demand, largely driven by the Indian diaspora and the rising awareness of the health advantages associated with these nuts.
Cultivation and Economic Impact
Harvesting Regions
In India, fox nuts predominantly flourish in low-lying regions, especially Bihar, contributing to the livelihoods of around 150,000 farmers. The nation holds a commanding 90% share of worldwide production, yielding approximately 120,000 metric tonnes of seeds annually. The cultivation process is cost-effective, requiring relatively shallow water bodies, making it an appealing option for agricultural workers.
Economic Growth
In the 2024-2025 period, fox nut exports reached around 800 metric tonnes, with approximately 50% heading to the U.S. The industry’s total turnover, including the domestic market, is valued at about 3.6 billion rupees (approximately $40 million). As Satyajit Singh notes, the sector is still in its "nascent stage," promising prospects for expansion within the Indian market and beyond.
Domestic Demand Surge
Interestingly, domestic consumption of fox nuts has been on the rise, growing significantly since the COVID-19 pandemic when many have turned toward healthier snacking options. Traditional dishes incorporating fox nuts are regaining popularity, and they are increasingly available in supermarkets in various flavors, ranging from spicy to cheesy.
The Indian government recognizes the potential in the fox nut industry and has established a makhana board with a budget of one billion rupees ($11 million) to support the sector through training, technical assistance, and export facilitation.
The Bright Horizon for Fox Nuts
Ketan Bengani, a Kolkata-based exporter, shares that despite an approximate 40 percent drop in exports to the U.S., the mounting local demand bodes well for future prospects. Emerging businesses are capitalizing on the growing trend; for example, Md Gulfaraz, a producer from Purnea, saw his company’s sales soar from 5.4 million rupees ($60,000) in 2019 to 45 million rupees ($500,000) in the financial year ending March 2025.
Conclusion: The Resilience of the Fox Nut Market
The narrative of fox nuts transcends the immediate economic challenges posed by tariffs. With a robust domestic market and growing international demand, the future looks promising for this traditional Indian superfood. As farmers shift focus toward fox nut cultivation, the impact of tariffs may be mitigated by the surging local consumption. The growing enthusiasm for health-oriented snacks is driving both innovation and economic resilience, making fox nuts a shining example of adaptability in a complex global market.
By understanding the intricacies and potential of the fox nut market, stakeholders can navigate future challenges while contributing to India’s agricultural success and economic sustainability. For more details on the nutritional benefits of fox nuts, visit Healthline.
