Makhana, a GI tagged produce, also known as fox nut or gorgon nut, is an important aquatic cash crop having both nutritional and medicinal values. India produces 90 per cent of the world production, but its commercial cultivation is confined to northern Bihar. In Bihar, Makhana is mainly cultivated in the flood prone areas’ of Mithilanchal, Kosi and Seemanchal regions of the state, accounting for 90 per cent of India’s total makhana production. During last decade several initiatives have been made to boost makhana sector by ramping up production with marketing and strengthening the farmers. Despite all, the sector is highly unorganized and besieged with much inefficiency. Hence, the present study was conducted in two selected districts representing two different ACZs of Bihar, with a sample of 200 makhana cultivators along with a few processors and traders, as case studies. The results show that the area and production of makhana has been substantially increased during the last decade. Per acre net returns were estimated as Rs. 18093 and Rs. 21241 on production of makhana seeds in traditional and field systems of cultivation respectively. Among the constraints, the biggest were use of traditional cultivars, lack of mechanical processing and dominance of traders for production, processing and marketing of makhana respectively. The supply chain of the produce varies according to chain of intermediaries and channels. Further, the study recognizes the immense scope of development, if the identified constraints are suitably addressed.