As Trump’s tariffs hit Indian fox nuts, the superfood eyes new markets | Trade War

by Marcus Liu - Business Editor
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Fox Nuts Feel the Pinch of US Tariffs, But Find New Markets

Katihar, india – Ravjit Singh, a leather garment trader who lives in Denver, Colorado, has started to feel the pinch of 50 percent tariffs imposed by united States President Donald Trump on Indian goods in recent months.

The 50-year-old, originally from Kolkata in eastern India, told Al Jazeera that rising grocery prices have sent his household budget haywire, in particular, affecting a favourite family snack – fox nuts, popularly known as makhana.

“The monthly budget has shot up to $900, wich was $500 before the pandemic, and tariffs have made things worse,” he said.

A pack of fox nuts weighing about 25 grammes (0.9 ounces), which used to cost $2, has in recent months doubled to $4, along with price increases of other household staples, like lentils and basmati rice, he added.

Fox nuts are the popped kernels of water lily seeds, and are found in tropical and subtropical regions of South and East Asia, with a considerable presence in India, China, Nepal and Japan. Packed with protein, calcium, antioxidants and vitamins, the nuts have rapidly gained a reputation as major immunity boosters.

But they haven’t been immune to the effects of TrumpS tariffs: The US president first hit Indian goods with a 25 percent levy, then doubled that to 50 percent on account of Indian imports of Russian oil, which he said were helping fuel Russia’s war on Ukraine.The tariffs have hit businesses across several sectors in India for whom the US has been a major export market, including those dealing with shrimp, diamonds and textiles.

Exporters of fox nuts have seen sales to the US slump by as much as 40 percent.

Still, amid the crisis, some are also spotting a ray of hope – Indian fox nuts are finding new, alternative markets and a growing appetite for the superfood in India.

‘Nascent stage’

In India, fox nuts are grown in low-lying areas, particularly in the eastern Bihar state, and are a source of income to about 150,000 farmers. The country dominates 90 percent of the global production.

The state produces 120,000 metric tonnes of seeds and 40,000 tonnes of popped fox nuts annually across 40,000 hectares (99,000 acres) of land.

The cultivation is done in shallow agricultural fields with a depth of about 1.3 to 1.8 metres (4 to 6 feet). It is not expensive, as new plants easily germinate from older seeds.

The harvesting season starts from mid-July and continues until the end of November, during which labourers sweep the entire body of water collected on fields for seeds with traditional tools like horn-shaped split bamboo and nets, depending on the seeds’ size.

The collected seeds are first sun-dried, and then heated in a clay or iron pan to make the outer shells brittle. The seeds are finally hammered to release the whiter edible makhana puff, which is again roasted for a final crunch.

In 2024-25, India exported approximately 800 metric tonnes of fox nuts to countries like Germany, China, the US and the middle East. But the US – where 50 percent of India’s exported fox nuts go – dominates the market,said Sat

Fox Nuts: India’s ‘Superfood’ Makes a Comeback,Bolstered by Government Support and Rising Demand

For generations,fox nuts – known as makhana in India – were a staple snack,particularly in the eastern state of Bihar. Though, they lost ground to the proliferation of Western and more modern Indian snacks, frequently enough outmatched by slick marketing and appealing flavors. Now, this traditional food is experiencing a resurgence, driven by growing awareness of its health benefits and supported by initiatives from the Indian government.

The COVID-19 pandemic proved to be a turning point for makhana, as consumers sought out foods believed to boost immunity. Today, fox nuts are readily available on supermarket shelves across India, offered in a diverse range of flavors including peri peri, tangy tomato, cheese, and onion & cream.

https://www.aljazeera.com/economy/2023/12/25/indias-makhana-superfood-makes-a-comeback-with-govt-support

Sujay Verma, a 43-year-old software engineer from Kolkata originally from Bihar, exemplifies this shift. He told Al jazeera he now provides his two daughters with a daily serving of fox nuts for breakfast. “We were rushing after the packed food items that were expensive and creating a hole in my pocket.But fox nuts are not only cheap, but also good for health,” he said.

Recognizing the economic potential, the Indian government announced the establishment of a Makhana Board earlier in 2023, with an initial investment of one billion rupees (approximately $12 million USD as of December 26, 2023 [https://www.xe.com/currencyconverter/convert/?Amount=1000000000&From=INR&To=USD]). The board aims to strengthen the value chain through training, technical assistance, quality control, and export promotion.

The impetus for this support comes from the highest levels of government. Prime Minister Narendra Modi publicly stated earlier this year that he regularly consumes fox nuts and believes it’s time to introduce this “superfood” to a global audience. https://www.livemint.com/news/india/pm-modi-promotes-makhana-says-it-is-a-superfood-11672064444444.html

This government backing, coupled with increasing demand, is attracting farmers and laborers to makhana cultivation.

Anil Kumar, assistant professor at Bhola Paswan Shastri Agricultural College in purnia, Bihar, explained to al Jazeera that laborers collecting fox nut seeds now earn approximately 2,000 rupees ($24 USD as of December 26, 2023 [https://www.xe.com/currencyconverter/convert/?Amount=2000&From=INR&To=USD]) per 50kg (110lbs) collected – more than double the typical 700-900 rupees ($8.40-$10.80 USD) earned by unskilled laborers.

The area under makhana cultivation has expanded dramatically. In 2010, production was limited to 5,000 hectares (12,355 acres), with farmers receiving 81 rupees ($0.98 USD as of December 26, 2023 [https://www.xe.com/currencyconverter/convert/?Amount=81&From=INR&To=USD]) per kilogram. Currently, approximately 40,000 hectares (98,842 acres) are dedicated to makhana farming, and farmers now receive 450 rupees ($5.40 USD as of December 26, 2023) per kilogram.

Satyajit, from Shakti Sudha Agro Ventures, expressed confidence in the future, stating, “The tariffs won’t hurt us, as the demand is increasing globally.”

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