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Status of mushroom production in India

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Mushroom Research 26 (2) : 111-120, 2017 VP SHARMA et al. Invited Status Paper

Status of mushroom production in India

VP Sharma, Sudheer K Annepu*, Yogesh Gautam, Manjit Singh and Shwet Kamal

ICAR-Directorate of Mushroom Research, Solan (H.P) – 173213

*Corresponding author; Email: sudheerannepu@gmail.com

ABSTRACT

The global mushroom industry has expanded very rapidly in the last two decades by the
addition of newer types of mushrooms for commercial cultivation. However, mushroom as
a vegetable is yet to find regular place among the Indian consumers. Despite of favourable
agro-climate, abundance of agro wastes, relatively low-cost labour and a rich fungal
biodiversity, India has witnessed a lukewarm response in its growth. At present, the total
mushroom production in India is approximately 0.13 million tons. From 2010-2017, the
mushroom industry in India has registered an average growth rate of 4.3% per annum. Out
of the total mushroom produced, white button mushroom share is 73% followed by oyster
mushroom (16%), paddy straw mushroom (7%) and milky mushroom (3%). Compared to
other vegetables; per capita consumption of mushrooms in India is meagre and data indicates
it is less than 100 grams per year. In the year 2016-2017, Indian mushroom industry generated
revenue of Rs. 7282.26 lacs by exporting 1054 quintals of white button mushroom in canned
and frozen form. By considering the production statistics, the spawn demand in India is
estimated about 8000-10000 tons per annum. Majority of this commercial spawn to the
growers is being supplied by the private units and the contribution of public sector
organizations in spawn supply was limited to 10% only. In this article we made an attempt
to analyse the current scenario of the mushroom industry with the assistance of AICRP
network centres located across the country and discussed the opportunities and challenges
for development of mushroom entrepreneurship in India.

Keywords: Indian mushroom production, spawn production, Agaricus bisporus

Indian agriculture, as it exists today, has
come a long way from its present image of
being non-commercial and traditional in its
methods of farming. The recent trends in
consumer behaviour surges the demand for
high quality niche products and forces the
agriculture sector to step up and adopt
commercially, technically and economically
viable agribusiness solutions (Shirur et al.,
2016). Business and investment opportunities in
this sector have suddenly jumped manifold. In
the present diet conscious era, mushrooms are
increasingly considered as a future vegetable
owing to its medicinal and nutritional
properties and the consumer demand for
mushrooms markedly expanded in the recent
years. Mushrooms are considered as a potential
substitute of muscle protein on account of their
high digestibility (Pavel, 2009). In addition to
protein, mushroom is an excellent source of
vitamin-D which is not available in other food
supplements (Pehrsson et al., 2003).
Mushrooms are low in calories, fat free,
cholesterol free, gluten free and very low in
sodium. Minerals such as potassium, iron,
copper, zinc and manganese are high in fruit

Received on 26 December 2017; Accepted on 26 December 2017

http://epubs.icar.org.in/ejournal/index.php/MR/issue/view

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 STATUS OF MUSHROOM PRODUCTION
bodies. Specific bioactive compounds in
mushrooms are responsible for improving
human health in many ways. These bioactive
compounds include lentinan in shiitake,
lovastatin in oyster, lectins in white button
mushrooms, ganoderic acid β-glucans in reishi
mushrooms, acidic polysaccharides in wood ear
mushrooms, ergothionine in winter mushroom,
cordycepin in Cordyceps and many more. All
these compounds have immunomodulating
properties and promote the immune function
of the human body against the cancer risk and
tumor growth.
Though mushroom production in Asian
countries started 1000 years ago, cultivation of
mushrooms is relatively new phenomenon in
India. Mushrooms such as Auricularia,
Flammulina and Lentinula were most likely
cultivated for the first time around the year 600-
800 AD in China and other Asian countries
(Chang and Wasser, 2017). Scientific
cultivation, however, started only at the
beginning of the 20 th century when pure
cultures of mushroom were prepared from
spore and tissue. Cultivation in the beginning
of the 20 th century was focused on button
mushroom mainly in USA and Europe. In first
half of the 20 th century the focus was on
cultivation of button mushroom in the West
and to a lesser extent on shiitake in the East.
In the second half of 20th century, there were
rapid changes in rate of growth of mushroom
production and number of species brought
under commercial cultivation. By the end of
20th century the share of button mushroom in
total world production was less than 40 per
cent, which in next ten years became around
30 per cent. 21st century, particularly last ten
years, have witnessed sudden rapid rise in
cultivation of mushrooms other than button.
Net result is an exponential growth in world
mushroom production. Due to almost
unimaginable growth in production of shiitake,
oyster mushrooms, wood ear mushroom and
Flammulina, the contribution of these
mushrooms to total world mushroom
112
production has increased tremendously as
compared to button mushroom, which is no
more the number one mushroom in terms of
share in global mushroom production. Presently
shiitake, oyster, wood ear and button
mushroom contribute 22, 19, 18 and 15%,
respectively in terms of total mushroom
production in the world (Singh et al., 2017). The
contribution of medicinal mushrooms in world
trade has increased over last few decades. The
research focusing on validation of medicinal
benefits and number of trials on use of novel
chemicals derived from mushrooms in cancer
research has attracted attention of industry.
Status of mushroom production in India
Even as the mushroom production and
consumption are on the rise in rest of the
world, India witnesses a lukewarm response in
its growth. Mushroom industry in India is
overwhelmingly focused on white button
mushroom which is a highly sophisticated and
capital-intensive activity. The recent production
data (official data of ICAR-DMR, Solan)
showing that, the share of button mushroom
in India is maximum amounting to 73%
followed by oyster mushroom which
contributes about 16%. There are two main
types of mushroom growers in India, those who
are growing white button mushroom round the
year under controlled conditions and seasonal
growers who are growing button mushrooms
during the winter seasons in north western
part of India. The total white button mushroom
produced in India from both seasonal and high
tech cultivation units is estimated at 94676
metric tons (Table 1). Out of this, approximately
8500 metric tons of button mushroom was
produced from the seasonal growing units
located in Haryana and Punjab which
accounted for 9% of total button mushroom
production. By effectively utilizing the seasonal
variations, the farmers of Punjab and Haryana
region have revolutionized the seasonal
cultivation process with very less inputs. Many
growers started adopting the seasonal
 VP SHARMA et al.

Table 1. Mushroom production in India during 2016 (ICAR-DMR, Solan official data)
(Production in metric tones)

States Button mushroom Oyster mushroom Milky mushroom Other mushrooms Total

Andhra Pradesh 3000 500 15 0 3515

Arunachal Pradesh 20 5 0 1 26

Assam 20 100 5 0 125

Bihar 950 1500 150 0 2600

Chhattisgarh 20 200 35 89 344

Delhi 3000 50 20 0 3070

Goa 4200 20 0 0 4220

Gujarat 10000 1200 0 0 11200

Haryana 15000 50 50 0 15100

Himachal Pradesh 9000 110 30 10 9150

Jammu and Kashmir 565 15 50 0 630

Jharkhand 200 20 0 0 220

Karnataka 700 320 160 0 1180

Kerala 0 500 300 0 800

Maharashtra 10000 2000 50 0 12050

Madhya Pradesh 10 5 0 0 15

Manipur 0 10 0 50 60

Meghalaya 25 2 0 0 27

Mizoram 0 50 0 0 50

Nagaland 0 75 0 250 325

Odisha 126 6310 0 9550 15986

Punjab 16000 2000 0 0 18000

Rajasthan 100 1000 0 200 1300

Sikkim 1 2 0 0 3

Tamil Nadu 6500 2000 1500 0 10000

Tripura 0 100 0 0 100

Uttarakhand 8189 1228 819 0 10236

Uttar Pradesh 7000 100 0 0 7100

West Bengal 50 1500 0 500 2050

Andaman & Nicobar 0 300 0 0 300

Total 94676 21272 3184 10650 129782

113
 STATUS OF MUSHROOM PRODUCTION

cultivation of white button mushroom as a

livelihood and income generating activity in
this region. The advantages like nearness to
market, availability of raw materials at cheaper
price coupled with the availability of good
quality of spawn triggering the mushroom
production from this region. However, the
seasonal growers are facing the market gluts in
December and January months resulting in
distressed selling of button mushroom crop
(Mehta et al., 2011).

Initially, white button mushroom

production was confined to temperate hilly
regions of India. However, with the
development of short method of composting
and optimization of fruiting conditions using
the chilling system, there has been a remarkable
change in its production scenario and spread
to all the corners of the country. At present,
highest production of button mushroom is
registered from the Punjab followed by
Haryana and Maharashtra (Fig. 1). These three
states producing 43% of total white button
mushroom produced in India. Some of the big
mushroom units viz., M/s Agro Dutch
Industries Ltd., (6000 tons per annum) M/s
Tirupathi Balaji Agro Products Pvt Ltd.,(4000
Fig. 1. Major mushroom producing state of India, 2016
TPA) M/s Flex Foods Pvt. Ltd., (2600 TPA)
M/s Weikfield Foods Pvt. Ltd., M/s., Himalaya
International Ltd., located in these regions and
contributing immensely to the white button
mushroom production. Seasonal cultivation
became more popular in Haryana and Punjab
region producing more than 8000-8500 tons of
white button mushrooms per year. Many
medium to small scale units are located in the

Table 2. Some of the medium to large scale button mushroom production units in India.

S. No Name of the mushroom unit Location Production capacity

1 M/s Himalya International Pvt. Ltd. Vadnagar, Gujarat 10000 TPA

2 M/s Agro Dutch Mushrooms Pvt. Ltd Chandigarh 8000 TPA

3 M/s Himalya International Pvt. Ltd. Paonta Sahib 4000 TPA

4 M/s Zuari Agro Farm Goa 4000 TPA

5 M/s Tirupati Balaji Agro Products Pvt. Ltd Baramati, Pune 3000 TPA

6 M/s Flex Foods Pvt. Ltd Dehradun, Uttarakhand 2600 TPA

7 M/s Weikfield Foods Pvt. Ltd. Haveli, Pune 2250 TPA

8 M/s Welkins Overseas Pvt Ltd. Roorke, Uttarakhand 500 TPA

9 M/s Vikas Mushroom Farm Solan, Himachal Pradesh 500 TPA

10 M/s Kulakarni Farm Fresh Belgam, Karnataka 350 TPA

* TPA-Tons Per Annum

114
 VP SHARMA et al.

Table 3. Some of the small to medium scale sub-tropical and tropical mushroom production units in India

S. No Name of the mushroom unit Type of mushroom Location Production capacity

1 M/s Prince Mushroom Milky mushroom Erode, Tamilnadu 100 TPA

2 M/s V Chandrasekaran Milky mushroom Villupuram, Tamilnadu 100 TPA
mushroom farm
3 M/s Siddharth Mushroom Oyster mushroom Nashik, Maharashtra 90 TPA
4 Mr. Mohan Prasad Oyster mushroom Jamai, Bihar 50 TPA
5 Flora Agro, Oyster mushroom Thane, Maharashtra 10 TPA
6 Dhepe Mushrooms Oyster mushroom Ahmednagar, Maharashtra 10 TPA
7 Ruchi Mushroom, Paddy straw mushroom Mayurbhanj, Odisha 40 TPA
8 Mrs. Jayanti Pradhan Paddy straw mushroom Kendupalli, Odisha 10TPA
9 SM Mushroom Laramba Paddy straw mushroom Bargarh, Odisha 10TPA
10 Mahadev Sahoo Barpali, Paddy straw mushroom Bargarh, Odisha 10 TPA
Bargarh

states of Himachal Pradesh, Gujarat,
Tamilnadu, Uttharakhand, Uttar Pradesh and
Goa.
Growth of mushroom production in India
There has been significant increase in
production of mushrooms in the last few years,
especially of the oyster and paddy straw
mushrooms in India. The country’s production
in 2010 was 1.00 lakh metric tons, of which
button mushroom accounted for 89% of the
total production, followed by oyster (6%), milky
(1%) and others (4%). Punjab, Uttrakhand,
Haryana, Uttar Pradesh and Tamilnadu were
the leading producers of the mushroom in the
Fig. 2. Production and productivity of mushrooms in
India
country at the time of 2010. The present
production status revealed that, Maharashtra
and Odisha are emerging as the leading states
in mushroom production. By considering the
present production data, mushroom industry in
India recorded an average annual growth rate
of 4.3%. During this period, the productivity
has raised from 20% to 24.5% by the releasing
(Fig. 2) of improved strains in commercial edible
mushroom.
Relative contribution of different mushroom
species
In India, there are five mushroom species
viz., white button mushroom (Agaricus
bisporus), oyster (Pleurotus spp.), paddy straw
(Volvariella volvacea), milky (Calocybe indica) and
shiitake (Lentinula edodes) are in commercial
cultivation. Even though, cultivation
technologies of many exotic were
standardized, the commercial markets are still
dominated by Agaricus bisporus, Pleurotus spp.
and Volvariella volvacea. These three
mushrooms are contributing about 96% of total
mushroom produced in India (Fig. 3). Milky
mushroom (Calocybe indica) is indigenous
tropical mushroom of the country (Kumar et

115
 STATUS OF MUSHROOM PRODUCTION
Fig. 3. Relative contribution of different mushroom
species in total production
al., 2017). However, the commercial cultivation
is restricted to south Indian states only and
contributing up to 3% to the total mushroom
production. Production of paddy straw
mushroom became more popular in the states
of Odisha and Chhattisgarh and its production
was registered at 7% to the total mushroom
production. The short duration cultivation
technology of shiitake under indoor conditions
was standardized at ICAR-DMR, Solan
(Sharma et al., 2017), but still this valued
mushroom has so far not been exploited at
commercial scale in India. Few of the growers
in Uttharakhand and Himachal Pradesh
successfully cultivated the shiitake mushroom
using the technology developed by ICAR-DMR,
Solan. However, the markets are dominating
by the dried mushrooms imported from China
and Taiwan. In North Eastern states,
Uttharakhand and Chhattisgarh states, oyster
mushroom cultivation is emerging as one of the
leading cottage industry.
Spawn production
With the setting up of the National
Research Centre for Mushrooms at Solan,
spawn was made available from the centre to
small and marginal farmers. In the late eighties,
116
Sylvan, from USA, started operations in India
marketing spawn produced at their European
centres. But unfortunately, they did not find
the market big enough to set up their own
production unit. We do not have large spawn
companies operating in India with a R&D back-
up facility, the spawn companies that are
operating just multiply the spawn and sell it.
The availability of strains is limited to non-
hybrid strains of A.bisporus and on hybrid
strain i.e., U-3. A dozen species of Pleurotus are
also available in India for cultivation in
different agro-climatic zones of India. Later
with the continuous research efforts from
ICAR-DMR (earlier NRCM), 11 new strains
were released for commercial cultivation viz.,
DMR-Button-03; U3-54 (High yielding strains of
white button mushroom); DMR-Button-06
(High yielding strains of brown button
mushroom); NBS-1 & NBS- 5 (Browning
resistant strains of white button mushroom);
DMRO-247 & DMRO-484 (High yielding
strains of paddy straw mushroom); DMRO-38
& DMRO-388s (High yielding strains of
shiitake mushroom); DMR-334 (High yielding
strains of milky mushroom); DMR-Macrocybe -
01 (High yielding strains of Macrocybe
mushroom). The cultures of all these strains are
available from the culture bank maintained at
the centre at ICAR-DMR, Solan. Today our
centre is the chief source of mushroom cultures
in the country. We maintain cultures in our
culture bank in a refrigerator (frequent sub-
culturing), in liquid paraffin and liquid nitrogen
(cryopreservation).
Spawn is prepared and supplied in 1kg
polypropylene packs and one kg of mushroom
spawn costs about Rs.70.00. Some big spawn
companies are supplying spawn to commercial
growers in India at almost 3 times the price of
that available locally. The quality of the spawn
produced by Indian companies is comparable
to the best in the world except that it is in small
packs of 1kg and the choice of strains is limited.
The big companies from US and Europe can
make it big in India if they cater to the markets
 VP SHARMA et al.

from surrounding areas like China, Indonesia,
Thailand and other countries. The biggest
advantage India offers is the lower cost of
production of spawn with low cost of inputs.
Presently, Indian market demand is about
8000-10000 tones of commercial spawn. Out of
this requirement, the share of spawn supplied
from public organizations (including ICAR-
DMR, AICRP networks centres and KVKs) is
limited to less than 10%. In the last five years,
ICAR-DMR, Solan has supplied a total number
of 2129 cultures of different mushrooms to
different spawn production units, research labs
and mushroom growers to prepare the quality
spawn. A total amount of 52.1 tons of
commercial spawn was sold to farmers and
mushroom growers from the centre from 2012-
2017. The demand for quality spawn is still
fulfilled by private spawn suppliers in India.
This trend is very clear with the mushroom
production status, where the higher production
is recorded from the states viz., Punjab,
Haryana, Uttarakhand, Tamilnadu,
Maharashtra and Odisha where more number
of private spawn labs are located.
Export avenues
World mushroom production has gradually
increased from 0.30 million tons to 3.41 million
tons over a period of last 50 years from 1965
to 2015 (Singh et al., 2017). Resultantly, the
world trade trend shows that the mushroom
export/import has also continuously increased
during the period. On the export front, till 1993,
Indian contribution to the world trade was
almost negligible, but it was heartening to note
that for the first time, during 1994, India not
only figured in the US imports, but emerged as
the second largest exporter of canned
mushrooms replacing Taiwan. In the year
2016-2017, the total exports of white button
mushroom from India in canned and frozen
form stood at 1054 quintals and generated an
income of Rs. 7282.26 lakhs (DGCIS export
data. 2017). There is a tremendous scope for
diversifying mushroom export by including
other mushroom species. Scientific and
technical manpower on mushrooms in the
country coupled with the skill-up gradation will
cater to the technological needs of the industry.
Mushroom industry is getting its due support
both from the public as well as private funding
agencies and is making rapid strides under the
Govt.’s policy of liberalization and
globalization.
Major export destinations for Indian
mushroom are European countries, USA and
Hon Kong. India exports mushroom in two
forms-fresh and prepared/processed. Button
mushroom accounts for approximately 95 per
cent of total mushroom exports. Regarding the
imports, mushroom spawn has registered

Table 4. Import of mushroom spawn from India (Value in Rs. Lacs; Quantity in quintals)

Country 2014-15 2015-16 2016-17 % growth on

Qty Value Qty Value Qty Value previous year

Netherland 4.18 15.39 12.72 43.10 21.06 69.69 61.69

France 0.81 3.90 0.80 3.81 2.17 9.97 161.68
Thailand 0.00 0.00 0.00 0.00 2.59 9.27 100.00
Denmark 0.12 0.64 0.00 0.00 0.00 0.00 0.00
Italy 0.47 1.58 0.00 0.00 0.00 0.00 0.00
United States 0.00 0.00 0.02 0.03 0.00 0.00 -100.00
Total 5.58 21.51 13.54 46.94 25.82 88.93 89.45

117
 STATUS OF MUSHROOM PRODUCTION

Table 5. Export of white mushrooms from India in dried form (Value in Rs. lacs; quantity in quintals)

Country 2014-15 2015-16 2016-17

Qty Value Qty Value Qty Value

Germany 37.55 876.67 53.54 1,159.53 67.37 1,481.75

France 9.11 1,383.21 6.72 736.31 3.55 354.84
Hong Kong 0 0 0.63 86.14 1.57 141.53
United States 6.46 176.19 6.33 159.57 4.79 108.82
Israel 0.12 2.98 1.24 32.5 0.73 19.56
Switzerland 4.77 942.64 0.36 53.18 0.09 10.01
Canada 6.65 149.09 0 0 0 0
China P Rp 2.88 399.12 1.68 223.9 0 0
Russia 0 0 1.64 18.75 0 0
Sweden 0.08 13.43 0.05 4.86 0 0
Total 67.62 3,943.33 72.19 2,474.74 78.1 2,116.51

Table 5. Export of white button mushrooms in preserved form

Country 2014-15 2015-16 2016-17

Qty Value Qty Value Qty Value

Switzerland 193.21 3,830.19 188.56 2,629.55 207.27 2,333.70

France 263.93 3,965.12 315.84 3,578.44 263.59 2,215.37
United States 3.9 67.27 381 149.87 442.16 226.63
Germany 23.3 258.44 55.26 312.2 27.9 134.06
China P Rp 94.81 1,448.89 15.59 202.28 22.5 122.94
Hong Kong 19.65 4.97 2 26.85 8.6 83.21
Spain 0 0 0 0 2.5 25.24
Japan 0.48 11.94 0.72 15.05 0.72 15.3
Sweden 1.4 24.7 3.2 37.25 1 9.3
Canada 190 35.74 0 0 0 0
Mexico 40.28 51.05 0 0 0 0
UK 1.5 32.19 0 0 0 0
Unspecified 0 0 2.84 43.01 0 0
Total 832.46 9,730.53 965.01 6,994.50 976.24 5,165.75

Source: DGCIS Annual Export

89.45% of growth rate in the year 2016-17 Although the current share of India in
compared to the previous year. Mushroom world exports is less than 1 percent, India has
spawn is mainly importing from the countries a great export potential. European Union and
like Netherlands, France and Taiwan. the United States are the biggest markets and

118
 VP SHARMA et al.
Poland and China are the biggest competitors
for Indian mushrooms. The countries in Middle
East are emerging as potential markets for
Indian mushrooms.
Marketing of mushrooms
Mushroom cultivation is a reliable and
effective way for resource poor cultivators to
grow nutritious food in a short space of time.
It also provides an opportunity to generate a
highly tradable commodity, thereby
contributing to income generation. But,
majority of the farmers fails to make profits out
of their mushroom production activity due to
the poor marketing strategy (Shirur et al., 2015).
Marketing of mushrooms in India is not yet
organised. It is the simple system of producers
selling directly to retailer or even to consumer,
which has its own limitations. The production
of mushrooms, mainly seasonal, has also
exacerbated its marketing problems. There have
been frequent reports of gluts in north Indian
States during the winter months forcing the
distress sale of the mushrooms. This reinforces
that effort to increase the production without
solving its marketing problems, would be
counter-productive. Here are some approaches
for successful marketing:
● Exploring various marketing options for
fresh mushrooms – depending on transport
infrastructure, selling directly to local
customers, local traders, markets,
intermediaries, regional wholesalers, local
restaurants, shops or farmer cooperatives.
● Adding value and increasing the shelf-life
of the mushrooms by creating processed
products, including dried or pickled
mushrooms, sauces, teas, extracts, etc.
● Becoming organized and teaming-up with
other producers, to bulk up on volume and
the variety of mushrooms, and attract
traders regularly to enable reliable sales of
the perishable produce.
119
● Identifying existing markets and trading
routes, and identifying any niches to be
filled (for example, organic mushrooms, fair
trade or cooperative produce).
Opportunities for mushroom production in
India
India is not a major producer of any of the
mushroom varieties, but it does cultivate all
edible and medicinal mushrooms in one or
other part, due to its diverse climatic conditions.
India has a good combination of both the
technical and non-technical manpower needed
to operate the mushroom growing activities.
Mushroom cultivation is based on recycling of
agricultural residues, which are available in
huge quantities in every corner of the country.
Black carbon emission from biomass burning,
is the second largest contributor to the current
global warming. At present the areas with Rice-
Wheat cropping system of India is facing tough
challenge to handle the mounting crop
residues. Mushroom cultivation can effectively
utilize these agro residues for production of
protein rich food and plays crucial role in
management of these agro residues.
The supply and demand gap in the world
trade of mushrooms and the shrinkage of
production in western countries due to high
labor costs would result in better market prices
for Indian mushroom producers. With a
domestic population of more than 1.2 billion,
India itself is a large market for mushrooms.
The development of rapid infrastructure
facilities and well-organized distribution
network provides the greater scope for
marketing of perishable products in order to
meet domestic consumer demands. To be
successful in both domestic and export market
it is essential to produce quality fresh
mushrooms and mushroom fortified value
added products at competitive rates without
any agro chemical residues. Efforts should also
be made to exploit the commercial utilization
of mushroom substrate left after cultivation for
 STATUS OF MUSHROOM PRODUCTION
preparation of organic manure, vermi compost,
briquettes, etc. One final reason for optimism
concerning India’s potential as a major
mushroom producer is its strategic
geographical location, making it more
convenient to export mushrooms to the Middle
East, Southeast Asia and European countries.
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