Mushroom farming in India initially started off as a hobby. However, many people don’t know that mushroom cultivation can become a full-fledged, highly profitable profession in the agro-world. Moreover, the best thing is that the types of mushrooms, like button mushrooms, etc., are easy to farm in small farm fields, backyards, basements and even small warehouses.
The commercialisation of mushrooms in India became a thing in the late 1960s. It happened when a German agriculturalist associated with an Indian agriculturist in Solan (a town in Himachal Pradesh, India). Upon collaborating, he suggested running a scheme like “Development of mushroom cultivation in Himachal Pradesh”, can open new doors. He felt that cultivating wide types of mushrooms in India can bring a lot of:
- Employment opportunities
- Increment in earning opportunities
- Diversity in crop production
Mushroom farming profit in India can be up to ₹1,90,000/year. Moreover, the best thing about the cultivation of mushroom farming is, they require less space and become ready to harvest within 3 weeks of the casing (covering of compost with a thin layer of sterile soil or materials like chalk powder).
Want to contribute to the production of mushrooms in India? Check out the top 4wd tractors in India.
Let’s discuss the top mushroom producing states in India. Hold on, as at the bottom, we are discussing cost and more specifically mushroom farming profit in India.
Mushroom Farming in India – Top Mushroom Producing States
India being an agro-rich country holds tremendous potential to cultivate a lot of varieties of mushroom, So, let’s identify the leading mushroom producing states.
1. Bihar
As per National Horticulture Board, Bihar is India’s leading producer of mushrooms. The state produced more than 28,000 tonnes of mushrooms during 2021-22, which is 10.82 % of the total mushrooms produced in the country.
Last year, Bihar produced 23,000 tonnes of mushrooms. And 3 years ago, the state used to rank 13th in terms of leading states for mushroom cultivation. And now Bihar has overtaken Odisha and become India’s leading producer.
2. Maharashtra
As per horticulture board data, Maharashtra ranks 2nd after Bihar in mushroom production. The state accounts for 9.89% of the total production throughout the country.
3. Odisha
Odisha is India’s 3rd largest producer of mushrooms, with a 9.66 % share in the country. Straw mushroom is the popular mushroom variety in Odisha.
4. Haryana
Sonipat district is popularly known for mushroom cultivation in India. Haryana govt. provides about 40% subsidy to general farmers, while a 90% subsidy to scheduled caste farmers is available.
| National Horticulture Mission |
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5. Punjab
Do you know the state has around 400 mushroom growers in various parts of Punjab? Moreover, the average annual production of mushrooms is between 45,000 – 48,000 tonnes per annum.
During the winter season, two crops of button mushroom (Sep to March) and 3 crops of oyster (Oct-March) are suitable for growing. Whereas during the summer season, 4 crops of paddy straw mushroom (April-August) and 3 crops of milky mushroom (April-Oct) are suitable to grow. The cultivation of winter crops starts mid-September, and button mushroom is popularly traded in the state.
6. Himachal Pradesh
Solan, Kully, Shimla, and Sirmour are popular districts of Himachal Pradesh producing mushrooms. There is a mushroom centre at Solan collaborating with the United Nations Development Project (UNDP). The centre aims to provide technical know-how to farmers for mushroom cultivation. Moreover, it helps farmers increase interest in cultivating white button mushrooms (Agaricus bisporus). This project’s allocated cost is Rs.1.26 crores, having the following key objectives:
- To enhance the R&D of types of mushrooms in the state.
- To make availability of quality spawn(mushroom seeds) and compost (nutrients).
- And, to provide the latest production technology for mushroom farming in India.
- To make the marketing facilities for mushroom cultivation & distribution robust.
7. Uttar Pradesh
Mushroom cultivation is taking a good stance in Uttar Pradesh. There were just 20 mushroom growers, and now the state has over 2000 growers. And each month, the number is increasing. Milky mushroom cultivation in Uttar Pradesh helps farmers earn profits up to 5 times, compared to 3 times the profit from button mushrooms.
8. West Bengal
Areas such as Kolkata, Durgapur and Siliguri have vast mushroom demand. In West Bengal, mushrooms have vast consumption in households, hotels, restaurants, local markets, etc.
Do you know 300+ women from 7 panchayats of West Bengal’s Purba Bardhaman district are doing mushroom cultivation as a side hustle? The people in West Bengal focus on the oyster mushroom as it grows well in local climatic conditions from October to February. Moreover, it contains more nutritive value & grows in less space than other varieties.
9. Kerala
Kerala is one of the producers of mushrooms in India. The state runs the RKVY project “Promotion of Mushroom Cultivation Units in Kerala”. The RKVY project aims to encourage farmers (especially women) to cultivate mushrooms across 500 units of 14 districts of Kerala. Furthermore, the program aims to increase earning potential and raise awareness about mushrooms’ high nutritional value.
Other states like Uttarakhand, Tamil Nadu, Goa, Andhra Pradesh, Delhi, Gujarat, Rajasthan, and Karnataka are also the producers of mushrooms in India.
Cost & Profit Analysis for Mushroom Farming
Let’s review whether achieving good mushroom farming profit is possible in India or not!
| Price of 1 kg of button mushroom | ₹140-₹165 |
| Total cost of 2,500 kgs of button mushroom @₹140 | ₹3,50,000 |
| Mushroom Farming Total Recurring Cost | ₹1,60,000 |
| Average Profit from Mushroom Farming | ₹1,90,000/year |
Hence, this above data shows that growing mushrooms is surely a profitable deal.
Govt. Subsidies for Mushroom Cultivation in India
RKVY Scheme 2021-22 offers financial assistance for Mushroom cultivation via 5 programs as follows:
Program 1 Small Scale Mushroom Production Unit – Subsidy up to 40% of the total cost of Rs. 28,125/unit. However, the max limit is – Rs. 11, 250/unit.
Program 2 Hi-tech Milky Mushroom Production Units – Subsidy up to 40% of the cost of Rs. 2.50 lakh/unit. However, the max limit is Rs. 1.00 lakh/unit.
Program 3 Minimal Processing and Value Addition Units of Mushroom – Subsidy up to 40% of the total cost of Rs. 1.00 lakh/unit. However, the maximum cost of Rs. 0.40 lakh/unit.
Program 4 Small Scale Mushroom Spawn Production Units – Subsidy up to 40% of the entire cost of Rs. 5.00 lakh/unit. However, the maximum cost is up to Rs. 2.00 lakh/unit.
Program 5 Vermicompost Units for Compost Production – The final total cost of creating compost of dimensions is 30’x8’x2.5′ with a cost of Rs. 1.00 lakh. However, this scheme provides subsidies up to 50% of the cost of Rs. 0.50 lakh (which shall be based on size or even a pro-rata basis).
Mushroom Cultivation at Global Level
100 countries all over the world are involved in mushroom cultivation, outputting
50 lakh tonnes of mushrooms altogether. And \of the total mushroom production:
- 50% is produced by Europe
- 27% by North America
- And about 14% by East Asian Countries
At present, the production of mushrooms is increasing at the rate of 7%. Whereas the growth rate in India is between 30-40%. Moreover, mushroom production is expected to increase to 6 lakh metric tonnes by 2025.
Final Words
These were the top mushroom producing states in India that have been interchangeably leading the production volume. Moreover, these states, in particular, have rich agro-climatic conditions, fertile soil profiles, and supply of the latest farming tractors and implements.
If you are enquiring about how to start mushroom farming in India and you are residing in these states, earning a profit of up to ₹1,90,000 annually can become possible for you. Hope the guide helped you identify the top mushroom producing states in India. To continue knowing about the latest farming techniques, technologies, and more, stay tuned with the TractorJunction blog.
Frequently Asked Questions
Que. How much is the price of 1 kg of mushrooms?
Ans. 1 kg of mushroom costs Rs 399 in India. However, this price can vary as per the market and the state.
Que. Which is the high-demand mushroom in India?
Ans. Paddy straw mushroom is highly popular worldwide and grows in South East Asia. Moreover, oyster mushrooms and button mushrooms are as well popular in India.
Que. Which country has the highest demand for mushrooms in India?
Ans. Europe has the biggest market for cultivating mushrooms in India, accounting for 35% more than the world’s demand. Moreover, North America and South America also witness explosive growth and demand for mushroom cultivation.
Que. Which is the best season to plant mushrooms in India?
Ans. Spring is the best season to plant mushroom logs.
Que. Is mushroom farming profitable in India?
Ans. On growing mushrooms at 100 square feet area, the average earning potential can be Rs 1 lakh to Rs 5 lakh per year.
Que. Which city is called the “Mushroom city of India”?
Ans. Solan (the city of Himachal Pradesh) is called the “Mushroom city of India” as it has a vast mushroom farming area. As well as the (DMR) Directorate of Mushroom Research is also situated at Chambaghat.
Que. Which types of mushrooms are easy to cultivate?
Ans. These are the top 5 varieties of mushrooms, easy to cultivate in India:
- Oyster mushrooms
- Shiitake mushrooms
- Pioppino mushrooms
- Wine cap mushrooms
- Lion’s mane mushrooms
Que. How many mushrooms can you grow from 1 kg of seeds?
Ans. You can easily harvest 600-900 grams of mushrooms from 1 kg straw.
Que. What are the planting materials for mushroom farming?
Ans. You’ll need compost, mushroom seeds (spawn), and casing material for mushroom cultivation.
Que. Is mushroom income taxable?
Ans. Assessees can treat mushroom income as”income from agriculture”. Hence, it can be exempted u/s. 10(1) of the Income Tax Act, 1961.
Que. Which states lead Mushroom production in India?
Ans. Bihar, Maharashtra, and Odisha are the leading producers of types of mushrooms in India.
Que. Which natural compost is suitable for mushroom cultivation?
Ans. Poultry Manure @100 kg, wheat straw @ 350 kg, horse dung @1000 kg and Gypsum are organic compost suitable for growing mushrooms.
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