India's mushroom production surges, led by Bihar, but challenges remain

India's mushroom output rose from 51,000 tonnes in 2015 to 347,750 tonnes in 2024, with Bihar at the forefront, but productivity, cold-chain and infrastructure gaps threaten further growth.

If one were to prepare a list of crops whose production has shown exponential growth over the past decade or so, mushrooms would figure prominently in such a ranking.

 

India’s mushroom production has jumped exponentially in the nine years from 2015 to 2024, rising from a mere 51,000 tonnes to almost 347,750 tonnes and registering a compound annual growth rate (CAGR) of 23.76 per cent, according to country-wise records maintained by the UN’s Food and Agriculture Organization (FAO).

 

In comparison, China, which remained the world’s largest producer of mushrooms of all kinds for both edible and non-edible purposes and accounted for almost 94 per cent of annual global output, registered a production CAGR of just 3.80 per cent between 2015 and 2024.

 

During the same period, total global mushroom production rose by 3.62 per cent, while total production excluding China rose by just 1.06 per cent.

 

India, which has a minuscule share of global mushroom production, thus recorded the fastest production growth in the past nine years.

 

So, how was this rapid growth in mushroom production achieved?

 

How did Bihar become India’s mushroom production leader?

 

According to a recent paper by the Indian Council of Agricultural Research (ICAR), India’s ‘mushroom kranti’, or mushroom revolution, has largely been led by states such as Bihar, Odisha and Maharashtra, with Bihar at the forefront.

 

Bihar has emerged as a leader, contributing 12.02 per cent of India’s total mushroom production in 2023-24, the paper said. Odisha follows with 9.86 per cent, while Maharashtra accounts for a 9.49 per cent share of India’s total production.

 

The report highlighted that the Bihar government’s initiatives, such as the Bihar Agriculture Roadmap, the ‘Mushroom Kit Vitaran’ Scheme (mushroom minikit distribution programme) and Integrated Development of Horticulture, have played a crucial role in promoting mushroom cultivation in the state.

 

In addition, institutional support from bodies such as the Rajendra Prasad Central Agricultural University (RPCAU) has further aided this revolution through training programmes, research and capacity-building initiatives, empowering farmers, particularly women, to adopt mushroom farming as a viable livelihood option, the ICAR paper said.

 

The paper, written by Sudhananand Prasad Lal and Kumari Sushmita, both from Rajendra Prasad Central Agricultural University in Pusa, Bihar, found that Bihar’s ‘mushroom kranti’ not only exemplifies the state’s capacity to lead in sustainable agricultural practices but also provides a blueprint for leveraging local resources and capabilities to achieve national and global agricultural goals.

 

The authors concluded that if the state government continues its support under the forthcoming Bihar Krishi Roadmap and the university and other extension functionaries continue to train landless and marginal farmers, production is expected to continue on the same exponential trajectory.

 

The paper said mushroom cultivation in Bihar has undergone a transformative journey, evolving from a nascent activity into a thriving industry with significant economic, social and ecological benefits.

 

The remarkable compound annual growth rate (CAGR) of 92.62 per cent over the decade to 2023-24 underscores its potential as a hub for sustainable agriculture and rural livelihood development.

 

Bihar’s mushroom production, according to government of India data, rose from a mere 60 tonnes in 2013-14 to 42,000 tonnes in 2023-24.

 

The paper, meanwhile, also revealed that despite high instability in production, as indicated by the Cuddy-Della Valle Index, Bihar has managed to achieve consistent growth, supported by the introduction of modern cultivation practices, subsidies and capacity-building programmes.

 

The Cuddy-Della Valle Index (CDVI) is a statistical measure used to calculate the degree of instability or fluctuation in time-series data while removing the influence of long-term trends.

 

The paper also found that challenges such as the short shelf life of mushrooms, weak market linkages and production instability must be addressed to sustain this growth.

 

“The adoption of advanced processing, storage solutions, and the establishment of farmer clusters can enhance productivity and profitability,” the paper said.

 

It said Bihar’s success in mushroom cultivation serves as a model for other states and highlights the transformative potential of integrating technology, policy support and grassroots innovation in agriculture.

 

If Bihar has been the torchbearer of India’s mushroom revolution, other states, too, have not lagged behind. However, India’s mushroom story is not all sweet.

 

What challenges could slow India’s mushroom industry growth?

 

According to Achal Shah, vice-president of strategy at Amycel, a global mushroom genetics company, although India’s mushroom industry is emerging as a bright spot in the agriculture sector and growing at an estimated 13-14 per cent annually, inadequate infrastructure, low productivity and limited access to organised inputs could constrain its next phase of expansion.

 

Shah said that although India is already the world’s second-largest mushroom producer, with production rising sharply from around 50,000 tonnes to approximately 340,000 tonnes, domestic consumption—driven by a growing middle class and increasing acceptance of mushrooms in international cuisines—has been the primary engine of this growth.

 

But much of India’s production continues to come from small and relatively inefficient operations, creating significant scope to improve yields and quality through industrial-scale production.

 

“The productivity gap is substantial,” Shah told Business Standard in a virtual interview.

 

He said Indian growers produce roughly 150 kg of mushrooms from a tonne of compost, compared with around 300 kg per tonne achieved by leading producers in countries such as the Netherlands and Poland.

 

Shah identified three major infrastructure gaps that need to be addressed for the sector to scale.

 

These include a shortage of high-quality professional composting facilities, limited domestic production of mushroom spawn at scale and an inadequate cold chain.

 

“The cold chain is particularly important for mushrooms because the product rapidly loses moisture after harvesting, reducing both weight and economic value,” Shah said.

 

He said India also faces higher energy requirements than some major mushroom-producing countries.

 

“Unlike temperate markets such as Poland and the Netherlands, Indian growers need to spend more on electricity for climate control and air-handling systems to maintain the controlled conditions required for commercial production,” Shah said.

 

He also cautioned against underestimating the capital required to build modern mushroom facilities.

 

“While government subsidy programmes may use investment estimates of around Rs 20 lakh for a farm and Rs 15 lakh for a spawn facility, industrial-scale, Dutch-style operations require substantially larger investments,” Shah said.

 

He said a world-class composting facility could require around Rs 80-90 crore, with another Rs 80-90 crore needed for growing rooms.

 

Despite these challenges, mushroom cultivation has strong sustainability credentials.

 

“The crop uses around 90 per cent less water than traditional row crops, while the complete production cycle from composting to harvest takes roughly three months. Once spawn is inoculated into compost, the growing cycle to harvest is around 30 days,” Shah said.

 

Regarding whether his company was evaluating opportunities in India, Shah said Amycel was evaluating opportunities to expand its presence in the country, where it currently has only a limited supply footprint.

 

Amycel is one of the two global leaders in mushroom genetics, with China-based Sylvan as its principal competitor.

 

Shah said the next phase of India’s mushroom growth will depend on moving from fragmented production towards more professionalised operations, better genetics, reliable inputs and stronger post-harvest infrastructure.