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 Page 1


17 Kurukshetra       March  2024
Mushroom Cultivation Mushroom Cultivation
A Fruitful and Lucrative Industry A Fruitful and Lucrative Industry
* Dr. Harender Raj Gautam
** Dr. Dharmesh Gupta
* The author is Former Professor and Head, Dr. Y.S.Parmar University of Horticulture and Forestry, Solan Himachal 
Pradesh. Email: hrg_mpp@yahoo.com 
** The author is Principal Scientist, Dr.Y.S.Parmar University of Horticulture and Forestry, Solan Himachal Pradesh.
Mushroom cultivation is one of the most profitable agriculture entrepreneurs. Integrating 
mushroom cultivation in the existing farming systems will supplement the income of 
the farmers and promote proper recycling of agro-residues. Mushrooms can supplement 
and contribute in achieving nutritional and food security. India can emerge as a major 
player in mushroom production if we efficiently plan to harness the availability of plenty 
of agricultural residues and labour. 
ushrooms are edible fungi that 
grow in natural habitats in the wild, 
on soil, and on wood. Scientists 
have recognised more than 
14,000 species of mushrooms, of 
which approximately 2000 are edible. These wild 
edible fungi have been collected and consumed by 
people for thousands of years in over 85 countries. 
The archaeological record reveals edible species 
associated with people living 13,000 years ago in 
Chile, but it is in China where the eating of wild 
fungi is first reliably noted, several hundred years 
before the birth of Christ. The use of wild edible/
medicinal mushrooms in India during the pre-
historic  period  finds references in ancient Vedic 
literature dating back to 3,000 B.C. and ‘Soma’, 
a divine drink of immortality, extracted possibly 
from Amanita muscaria, was known to the Aryans. 
M
Page 2


17 Kurukshetra       March  2024
Mushroom Cultivation Mushroom Cultivation
A Fruitful and Lucrative Industry A Fruitful and Lucrative Industry
* Dr. Harender Raj Gautam
** Dr. Dharmesh Gupta
* The author is Former Professor and Head, Dr. Y.S.Parmar University of Horticulture and Forestry, Solan Himachal 
Pradesh. Email: hrg_mpp@yahoo.com 
** The author is Principal Scientist, Dr.Y.S.Parmar University of Horticulture and Forestry, Solan Himachal Pradesh.
Mushroom cultivation is one of the most profitable agriculture entrepreneurs. Integrating 
mushroom cultivation in the existing farming systems will supplement the income of 
the farmers and promote proper recycling of agro-residues. Mushrooms can supplement 
and contribute in achieving nutritional and food security. India can emerge as a major 
player in mushroom production if we efficiently plan to harness the availability of plenty 
of agricultural residues and labour. 
ushrooms are edible fungi that 
grow in natural habitats in the wild, 
on soil, and on wood. Scientists 
have recognised more than 
14,000 species of mushrooms, of 
which approximately 2000 are edible. These wild 
edible fungi have been collected and consumed by 
people for thousands of years in over 85 countries. 
The archaeological record reveals edible species 
associated with people living 13,000 years ago in 
Chile, but it is in China where the eating of wild 
fungi is first reliably noted, several hundred years 
before the birth of Christ. The use of wild edible/
medicinal mushrooms in India during the pre-
historic  period  finds references in ancient Vedic 
literature dating back to 3,000 B.C. and ‘Soma’, 
a divine drink of immortality, extracted possibly 
from Amanita muscaria, was known to the Aryans. 
M
18 Kurukshetra       March  2024
Button mushroom
Edible fungi were collected from forests in ancient 
Greek and Roman times and were highly valued by 
high-ranking people. Caesar's mushroom (Amanita 
caesarea) is one such example, which is very popular 
edible mushroom and was a favourite of early rulers 
of the Roman Empire and has been so for more 
than 2000 years in Italy. This quest for edible fungi 
and their emerging importance in food developed 
mushroom cultivation as an entrepreneur industry.  
Present Production Scenario 
Global mushroom production was 44.2 
million tons in 2021 (FAOSTAT, 2023) with the 
highest contribution from shiitake mushroom 
(26%), followed by oyster mushroom (21%), black 
ear mushroom (21%), button mushroom (11%), 
Flammulina (7%), paddy straw mushroom (1%), and 
others mushrooms (13%). India produces around 
0.28 million tonnes of mushrooms every year.  In 
India, per capita consumption is about 90 g, which 
is less compared to other countries, including the 
USA (1.49 kg) and China (1.16 kg). The cultivation 
of mushrooms was first started in 1961 at Solan 
in Himachal Pradesh. Initially, the scientists at 
the Department of Mycology and Plant Pathology 
of the then College of Agriculture, which is now 
elevated to Dr. Y.S. Parmar University of Horticulture 
and Forestry at Nauni and officials of the State 
Department of Horticulture have credit in generating 
the production technology, human resources, and 
popularisation of mushroom cultivation among the 
farmers in the country. As the mushroom cultivation 
gained adoption and keen interest among the 
farmers, the Indian Council of Agricultural Research 
(ICAR) established the National Research Centre for 
Mushrooms (NRCM) at Chambaghat, Solan in 1983 
and then elevated the centre to the Directorate 
of Mushroom Research (DMR) in 2008. Solan city 
being the epicentre of mushroom cultivation from 
the beginning, was declared as ‘The Mushroom City 
of India’ by the State Government on 10
 
September 
1997. 
In India, button mushroom is the major 
species under cultivation, with a contribution of 
around 70%, followed by Oyster mushrooms (17%), 
paddy  straw mushroom (9%), and milky mushroom 
(Calocybe indica) (3%). Other mushroom species 
like Shiitake, Cordyceps militaris, Ganoderma, etc. 
account for the remaining one per cent. Bihar is 
the major producer with a production of around 
35.6 thousand tonnes with 11% share in total 
production. Odisha, with around 34.5 thousand 
tonnes of production is the second-highest 
producer, followed by Maharashtra (32.5 thousand 
tonnes), Uttar Pradesh (23.4 thousand tonnes), and 
Uttarakhand (22.4 thousand tonnes). The northern 
states of Punjab, Haryana, and Himachal Pradesh are 
majorly focused on button mushroom cultivation. 
These states have become the hub of compost 
preparation and seasonal button mushroom 
cultivation during the months of September to 
mid-March. Milky mushroom is a kind of native 
to tropical States, i.e. Southern India, while Paddy 
straw mushroom is mainly grown in Odisha and 
Chhattisgarh due to the availability of paddy straw 
as a substrate material. Various promising, short 
duration, and improved strains of other mushrooms 
such as Shiitake, Hericium, Ganoderma have been 
developed, which can be promising alternatives for 
the farmers in future.
Mushroom Cultivation- Efficient Way of Agro-
industrial Waste Disposal and Zero-Emission 
Strategy for Food Production 
Mushroom cultivation is a unique way of 
efficiently using microbial technology for the 
bio-conversion of the agricultural, industrial, 
forestry, and household waste into nutritious and 
proteinaceous food. India produces about 650 
million tonnes (MT) of crop residues every year 
(NITI Aayog, 2023), out of which 368 MT comes 
Page 3


17 Kurukshetra       March  2024
Mushroom Cultivation Mushroom Cultivation
A Fruitful and Lucrative Industry A Fruitful and Lucrative Industry
* Dr. Harender Raj Gautam
** Dr. Dharmesh Gupta
* The author is Former Professor and Head, Dr. Y.S.Parmar University of Horticulture and Forestry, Solan Himachal 
Pradesh. Email: hrg_mpp@yahoo.com 
** The author is Principal Scientist, Dr.Y.S.Parmar University of Horticulture and Forestry, Solan Himachal Pradesh.
Mushroom cultivation is one of the most profitable agriculture entrepreneurs. Integrating 
mushroom cultivation in the existing farming systems will supplement the income of 
the farmers and promote proper recycling of agro-residues. Mushrooms can supplement 
and contribute in achieving nutritional and food security. India can emerge as a major 
player in mushroom production if we efficiently plan to harness the availability of plenty 
of agricultural residues and labour. 
ushrooms are edible fungi that 
grow in natural habitats in the wild, 
on soil, and on wood. Scientists 
have recognised more than 
14,000 species of mushrooms, of 
which approximately 2000 are edible. These wild 
edible fungi have been collected and consumed by 
people for thousands of years in over 85 countries. 
The archaeological record reveals edible species 
associated with people living 13,000 years ago in 
Chile, but it is in China where the eating of wild 
fungi is first reliably noted, several hundred years 
before the birth of Christ. The use of wild edible/
medicinal mushrooms in India during the pre-
historic  period  finds references in ancient Vedic 
literature dating back to 3,000 B.C. and ‘Soma’, 
a divine drink of immortality, extracted possibly 
from Amanita muscaria, was known to the Aryans. 
M
18 Kurukshetra       March  2024
Button mushroom
Edible fungi were collected from forests in ancient 
Greek and Roman times and were highly valued by 
high-ranking people. Caesar's mushroom (Amanita 
caesarea) is one such example, which is very popular 
edible mushroom and was a favourite of early rulers 
of the Roman Empire and has been so for more 
than 2000 years in Italy. This quest for edible fungi 
and their emerging importance in food developed 
mushroom cultivation as an entrepreneur industry.  
Present Production Scenario 
Global mushroom production was 44.2 
million tons in 2021 (FAOSTAT, 2023) with the 
highest contribution from shiitake mushroom 
(26%), followed by oyster mushroom (21%), black 
ear mushroom (21%), button mushroom (11%), 
Flammulina (7%), paddy straw mushroom (1%), and 
others mushrooms (13%). India produces around 
0.28 million tonnes of mushrooms every year.  In 
India, per capita consumption is about 90 g, which 
is less compared to other countries, including the 
USA (1.49 kg) and China (1.16 kg). The cultivation 
of mushrooms was first started in 1961 at Solan 
in Himachal Pradesh. Initially, the scientists at 
the Department of Mycology and Plant Pathology 
of the then College of Agriculture, which is now 
elevated to Dr. Y.S. Parmar University of Horticulture 
and Forestry at Nauni and officials of the State 
Department of Horticulture have credit in generating 
the production technology, human resources, and 
popularisation of mushroom cultivation among the 
farmers in the country. As the mushroom cultivation 
gained adoption and keen interest among the 
farmers, the Indian Council of Agricultural Research 
(ICAR) established the National Research Centre for 
Mushrooms (NRCM) at Chambaghat, Solan in 1983 
and then elevated the centre to the Directorate 
of Mushroom Research (DMR) in 2008. Solan city 
being the epicentre of mushroom cultivation from 
the beginning, was declared as ‘The Mushroom City 
of India’ by the State Government on 10
 
September 
1997. 
In India, button mushroom is the major 
species under cultivation, with a contribution of 
around 70%, followed by Oyster mushrooms (17%), 
paddy  straw mushroom (9%), and milky mushroom 
(Calocybe indica) (3%). Other mushroom species 
like Shiitake, Cordyceps militaris, Ganoderma, etc. 
account for the remaining one per cent. Bihar is 
the major producer with a production of around 
35.6 thousand tonnes with 11% share in total 
production. Odisha, with around 34.5 thousand 
tonnes of production is the second-highest 
producer, followed by Maharashtra (32.5 thousand 
tonnes), Uttar Pradesh (23.4 thousand tonnes), and 
Uttarakhand (22.4 thousand tonnes). The northern 
states of Punjab, Haryana, and Himachal Pradesh are 
majorly focused on button mushroom cultivation. 
These states have become the hub of compost 
preparation and seasonal button mushroom 
cultivation during the months of September to 
mid-March. Milky mushroom is a kind of native 
to tropical States, i.e. Southern India, while Paddy 
straw mushroom is mainly grown in Odisha and 
Chhattisgarh due to the availability of paddy straw 
as a substrate material. Various promising, short 
duration, and improved strains of other mushrooms 
such as Shiitake, Hericium, Ganoderma have been 
developed, which can be promising alternatives for 
the farmers in future.
Mushroom Cultivation- Efficient Way of Agro-
industrial Waste Disposal and Zero-Emission 
Strategy for Food Production 
Mushroom cultivation is a unique way of 
efficiently using microbial technology for the 
bio-conversion of the agricultural, industrial, 
forestry, and household waste into nutritious and 
proteinaceous food. India produces about 650 
million tonnes (MT) of crop residues every year 
(NITI Aayog, 2023), out of which 368 MT comes 
19 Kurukshetra       March  2024
from cereal crops, out of which rice and wheat 
contribute about 154 and 131 MT, respectively. It is 
estimated that there is a surplus of 178 MT of crop 
residues every year out of which 87 MT is burnt 
leading to pollution which is a major contributor of 
climate change. Currently, we are using only 0.03% 
of these residues for mushroom production. 
Mushrooms can be grown successfully on 
most of the waste of agricultural and forest origin, 
which can turn these lignocellulosic residues into 
value-added products such as food, medicine, 
feed, fuel, compost, and manures. Their use in 
mushroom cultivation can serve as a valuable 
resource leading to economic growth instead of 
causing environmental pollution and subsequent 
health hazards due to incineration. If we make use 
of agricultural waste for mushroom production, 
India can produce 3 million tonnes of mushroom 
and about 15 million tonnes of bio-compost. For 
example, in Japan, mushrooms account for 44% 
of the production value generated in the forestry 
industry, which utilises forests that occupy nearly 
70% of the country's land. India can emerge as 
a major player in mushroom production if we 
efficiently plan to harness the availability of plenty of 
agricultural residues and labour. Utilisation of agro-
residues for mushroom production will not only 
help to reduce environmental pollution but it can 
also generate a lot of employment opportunities.
Mushroom Cultivation- Profitable Venture 
Mushroom cultivation is one of the most 
profitable agriculture entrepreneurs. Mushrooms 
are cultivated indoors and do not require arable 
land. At present, four mushrooms viz., Button 
mushroom (Agaricus bisporus), Oyster Mushroom 
(Pleurotus spp), Paddy straw mushroom ( Volvariella 
spp.), and Milky mushroom (Calocybe indica) have 
been recommended for year-round cultivation in 
India. Some mushrooms like oyster, paddy straw 
and milky mushroom require simple cultivation 
technology and can be easily adopted by the 
growers. The cultivation methods for sub-tropical/
tropical mushrooms like Lentinula, Flammulina, 
Auricularia, Agrocybe, Stropharia, Macrocybe, 
Hericium, Ganoderma, etc. have also been 
standardised in India. Farmers can start cultivation 
even in small rooms with minimum infrastructure. 
These are grown seasonally as well as in state-of-
the-art environmentally-controlled cropping rooms 
all year round in the commercial units. It is a short-
duration crop, ranging from 1-3 months depending 
on the different mushroom species with high yield 
per unit time. A minimum viable controlled unit of 
white button mushroom needs an area that is even 
less than 0.1 ha. Farmers with zero-energy poly 
tunnel technology of button mushrooms growing 
can earn ranging from Rs. 40,000 to 50,000 from 
500 bags from a small room of 100-120 square feet 
in a duration of 3-4 months. Farmers with minimum 
investment and land can start this venture. The 
profit margins are 25-30 per cent higher in bigger 
units due to controlled environment conditions. 
Cultivation of Shiitake mushrooms is comparatively 
more profitable and the farmers fetch higher price 
and can earn ranging from Rs. 45,000 to 70,000 
from 500 bags. 
Mushroom cultivation can support the 
livelihood of small and marginal farmers 
economically as well as nutritionally. Mushrooms, 
like oyster can be grown on locally available 
agricultural and agro-industrial wastes and no 
sophisticated infrastructure is required which 
makes the operational cost as low as Rs. 30-40 
per kg of mushroom. Thus, with such minimum 
requirements, mushroom farming is a promising 
diversification alternative. The Directorate of 
Mushroom Research is a leading institution in 
supporting the establishment of mushroom units 
of different scales. The institute prepares techno-
economic feasibility reports for setting up button 
mushroom growing units to a capacity level of 500 
tonnes per annum and also for growing Oyster, 
Ganoderma, Shiitake, and Cordyceps, as well as for 
establishing spawn production units. In addition, 
other agricultural institutes and universities also 
provide such facilities. Based on these techno-
economic feasibility reports, Public Sector and 
other banks provide funding to start such ventures. 
Government of India and different State Governments 
also provide financial support in the form of 
subsidies to support farmers and entrepreneurs. 
Government of India sponsored schemes 
like the Mission for Integrated Development of 
Horticulture (MIDH) and the National Bank for the 
Page 4


17 Kurukshetra       March  2024
Mushroom Cultivation Mushroom Cultivation
A Fruitful and Lucrative Industry A Fruitful and Lucrative Industry
* Dr. Harender Raj Gautam
** Dr. Dharmesh Gupta
* The author is Former Professor and Head, Dr. Y.S.Parmar University of Horticulture and Forestry, Solan Himachal 
Pradesh. Email: hrg_mpp@yahoo.com 
** The author is Principal Scientist, Dr.Y.S.Parmar University of Horticulture and Forestry, Solan Himachal Pradesh.
Mushroom cultivation is one of the most profitable agriculture entrepreneurs. Integrating 
mushroom cultivation in the existing farming systems will supplement the income of 
the farmers and promote proper recycling of agro-residues. Mushrooms can supplement 
and contribute in achieving nutritional and food security. India can emerge as a major 
player in mushroom production if we efficiently plan to harness the availability of plenty 
of agricultural residues and labour. 
ushrooms are edible fungi that 
grow in natural habitats in the wild, 
on soil, and on wood. Scientists 
have recognised more than 
14,000 species of mushrooms, of 
which approximately 2000 are edible. These wild 
edible fungi have been collected and consumed by 
people for thousands of years in over 85 countries. 
The archaeological record reveals edible species 
associated with people living 13,000 years ago in 
Chile, but it is in China where the eating of wild 
fungi is first reliably noted, several hundred years 
before the birth of Christ. The use of wild edible/
medicinal mushrooms in India during the pre-
historic  period  finds references in ancient Vedic 
literature dating back to 3,000 B.C. and ‘Soma’, 
a divine drink of immortality, extracted possibly 
from Amanita muscaria, was known to the Aryans. 
M
18 Kurukshetra       March  2024
Button mushroom
Edible fungi were collected from forests in ancient 
Greek and Roman times and were highly valued by 
high-ranking people. Caesar's mushroom (Amanita 
caesarea) is one such example, which is very popular 
edible mushroom and was a favourite of early rulers 
of the Roman Empire and has been so for more 
than 2000 years in Italy. This quest for edible fungi 
and their emerging importance in food developed 
mushroom cultivation as an entrepreneur industry.  
Present Production Scenario 
Global mushroom production was 44.2 
million tons in 2021 (FAOSTAT, 2023) with the 
highest contribution from shiitake mushroom 
(26%), followed by oyster mushroom (21%), black 
ear mushroom (21%), button mushroom (11%), 
Flammulina (7%), paddy straw mushroom (1%), and 
others mushrooms (13%). India produces around 
0.28 million tonnes of mushrooms every year.  In 
India, per capita consumption is about 90 g, which 
is less compared to other countries, including the 
USA (1.49 kg) and China (1.16 kg). The cultivation 
of mushrooms was first started in 1961 at Solan 
in Himachal Pradesh. Initially, the scientists at 
the Department of Mycology and Plant Pathology 
of the then College of Agriculture, which is now 
elevated to Dr. Y.S. Parmar University of Horticulture 
and Forestry at Nauni and officials of the State 
Department of Horticulture have credit in generating 
the production technology, human resources, and 
popularisation of mushroom cultivation among the 
farmers in the country. As the mushroom cultivation 
gained adoption and keen interest among the 
farmers, the Indian Council of Agricultural Research 
(ICAR) established the National Research Centre for 
Mushrooms (NRCM) at Chambaghat, Solan in 1983 
and then elevated the centre to the Directorate 
of Mushroom Research (DMR) in 2008. Solan city 
being the epicentre of mushroom cultivation from 
the beginning, was declared as ‘The Mushroom City 
of India’ by the State Government on 10
 
September 
1997. 
In India, button mushroom is the major 
species under cultivation, with a contribution of 
around 70%, followed by Oyster mushrooms (17%), 
paddy  straw mushroom (9%), and milky mushroom 
(Calocybe indica) (3%). Other mushroom species 
like Shiitake, Cordyceps militaris, Ganoderma, etc. 
account for the remaining one per cent. Bihar is 
the major producer with a production of around 
35.6 thousand tonnes with 11% share in total 
production. Odisha, with around 34.5 thousand 
tonnes of production is the second-highest 
producer, followed by Maharashtra (32.5 thousand 
tonnes), Uttar Pradesh (23.4 thousand tonnes), and 
Uttarakhand (22.4 thousand tonnes). The northern 
states of Punjab, Haryana, and Himachal Pradesh are 
majorly focused on button mushroom cultivation. 
These states have become the hub of compost 
preparation and seasonal button mushroom 
cultivation during the months of September to 
mid-March. Milky mushroom is a kind of native 
to tropical States, i.e. Southern India, while Paddy 
straw mushroom is mainly grown in Odisha and 
Chhattisgarh due to the availability of paddy straw 
as a substrate material. Various promising, short 
duration, and improved strains of other mushrooms 
such as Shiitake, Hericium, Ganoderma have been 
developed, which can be promising alternatives for 
the farmers in future.
Mushroom Cultivation- Efficient Way of Agro-
industrial Waste Disposal and Zero-Emission 
Strategy for Food Production 
Mushroom cultivation is a unique way of 
efficiently using microbial technology for the 
bio-conversion of the agricultural, industrial, 
forestry, and household waste into nutritious and 
proteinaceous food. India produces about 650 
million tonnes (MT) of crop residues every year 
(NITI Aayog, 2023), out of which 368 MT comes 
19 Kurukshetra       March  2024
from cereal crops, out of which rice and wheat 
contribute about 154 and 131 MT, respectively. It is 
estimated that there is a surplus of 178 MT of crop 
residues every year out of which 87 MT is burnt 
leading to pollution which is a major contributor of 
climate change. Currently, we are using only 0.03% 
of these residues for mushroom production. 
Mushrooms can be grown successfully on 
most of the waste of agricultural and forest origin, 
which can turn these lignocellulosic residues into 
value-added products such as food, medicine, 
feed, fuel, compost, and manures. Their use in 
mushroom cultivation can serve as a valuable 
resource leading to economic growth instead of 
causing environmental pollution and subsequent 
health hazards due to incineration. If we make use 
of agricultural waste for mushroom production, 
India can produce 3 million tonnes of mushroom 
and about 15 million tonnes of bio-compost. For 
example, in Japan, mushrooms account for 44% 
of the production value generated in the forestry 
industry, which utilises forests that occupy nearly 
70% of the country's land. India can emerge as 
a major player in mushroom production if we 
efficiently plan to harness the availability of plenty of 
agricultural residues and labour. Utilisation of agro-
residues for mushroom production will not only 
help to reduce environmental pollution but it can 
also generate a lot of employment opportunities.
Mushroom Cultivation- Profitable Venture 
Mushroom cultivation is one of the most 
profitable agriculture entrepreneurs. Mushrooms 
are cultivated indoors and do not require arable 
land. At present, four mushrooms viz., Button 
mushroom (Agaricus bisporus), Oyster Mushroom 
(Pleurotus spp), Paddy straw mushroom ( Volvariella 
spp.), and Milky mushroom (Calocybe indica) have 
been recommended for year-round cultivation in 
India. Some mushrooms like oyster, paddy straw 
and milky mushroom require simple cultivation 
technology and can be easily adopted by the 
growers. The cultivation methods for sub-tropical/
tropical mushrooms like Lentinula, Flammulina, 
Auricularia, Agrocybe, Stropharia, Macrocybe, 
Hericium, Ganoderma, etc. have also been 
standardised in India. Farmers can start cultivation 
even in small rooms with minimum infrastructure. 
These are grown seasonally as well as in state-of-
the-art environmentally-controlled cropping rooms 
all year round in the commercial units. It is a short-
duration crop, ranging from 1-3 months depending 
on the different mushroom species with high yield 
per unit time. A minimum viable controlled unit of 
white button mushroom needs an area that is even 
less than 0.1 ha. Farmers with zero-energy poly 
tunnel technology of button mushrooms growing 
can earn ranging from Rs. 40,000 to 50,000 from 
500 bags from a small room of 100-120 square feet 
in a duration of 3-4 months. Farmers with minimum 
investment and land can start this venture. The 
profit margins are 25-30 per cent higher in bigger 
units due to controlled environment conditions. 
Cultivation of Shiitake mushrooms is comparatively 
more profitable and the farmers fetch higher price 
and can earn ranging from Rs. 45,000 to 70,000 
from 500 bags. 
Mushroom cultivation can support the 
livelihood of small and marginal farmers 
economically as well as nutritionally. Mushrooms, 
like oyster can be grown on locally available 
agricultural and agro-industrial wastes and no 
sophisticated infrastructure is required which 
makes the operational cost as low as Rs. 30-40 
per kg of mushroom. Thus, with such minimum 
requirements, mushroom farming is a promising 
diversification alternative. The Directorate of 
Mushroom Research is a leading institution in 
supporting the establishment of mushroom units 
of different scales. The institute prepares techno-
economic feasibility reports for setting up button 
mushroom growing units to a capacity level of 500 
tonnes per annum and also for growing Oyster, 
Ganoderma, Shiitake, and Cordyceps, as well as for 
establishing spawn production units. In addition, 
other agricultural institutes and universities also 
provide such facilities. Based on these techno-
economic feasibility reports, Public Sector and 
other banks provide funding to start such ventures. 
Government of India and different State Governments 
also provide financial support in the form of 
subsidies to support farmers and entrepreneurs. 
Government of India sponsored schemes 
like the Mission for Integrated Development of 
Horticulture (MIDH) and the National Bank for the 
20 Kurukshetra       March  2024
Agriculture and Rural Development extend financial 
support for the establishment of mushroom farms. 
In  many such financial support schemes, Agriculture 
Infrastructure Fund (AIF) is a  medium-long-term 
debt financing facility scheme that was launched 
by the Central Government in 2020, which also 
supports the establishment of mushroom-growing 
units. Under this Scheme, one lakh crore rupees is 
to be provided to the farmers and entrepreneurs 
for some selected agriculture-based ventures, 
including mushroom cultivation by banks and 
financial institutions with interest subvention @ 3% 
and Credit Guarantee facility. The Government of 
India has already sanctioned Rs. 32,472 crore worth 
of 43,318 projects, under AIF till November 2023 
to fund such agriculture-based projects including 
mushrooms.
Medicinal and Nutraceutical Properties 
Mushrooms have long been valued as 
medicinal and nutritional rich food around the 
world. The food and Agriculture Organization 
(FAO) has recommended mushrooms as a protein 
food, especially for developing nations. Mushroom 
species such as Ganoderma, Lentinus, Auricularia, 
Hericium, Grifola, Flammulina, Pleurotus, Tremella, 
and Cordyceps have high potential medicinal and 
functional properties. Ganoderma species (ling zhi or 
reishi) are the most valuable medicinal mushrooms 
and the global value of dietary supplements 
made out of Ganoderma has been estimated to 
be USD 1.6 billion per annum. Mushrooms are 
rich in proteins, vitamins, minerals and are low in 
fat and sugar, which is why they are considered a 
super food. Mushrooms contain a good amount of 
quality proteins (30-40% on dry weight basis) and 
are also rich in essential amino acids required for 
good health. Mushrooms are rich in amino acids 
like leucine and lysine, which are commonly lacking 
in many staple cereal foods. Mushrooms are low in 
sugar and fat and are thus very useful for the people 
suffering from diabetes and heart-related problems. 
Mushrooms provide several groups of vitamins, 
particularly vitamin D, thiamine, riboflavin, niacin, 
biotin, pantothenic acid, and ascorbic acid. Being 
the only vegetarian source of vitamin D, mushrooms 
can be very helpful in alleviating the prevalent 
vitamin D deficiency among the masses. Moreover, 
mushrooms are also rich in various minerals like 
phosphorus, zinc, manganese, potassium, copper, 
selenium (an antioxidant), iron, magnesium, etc. 
Incorporating mushrooms into diets at least twice 
a week is reported to reduce the risk of the early-
stage of memory loss. Many commercial products 
made from different medicinal mushrooms are 
available in the market and some prominent among 
these are Lentinan from Lentinus edodes, Concord 
Sunchih and Reishi Plus from Ganoderma lucidum, 
Grifon from Grifola frondosa, Mycoformulas 
Endurance from Cordycep sinensis and Didanosine 
from Cordyceps militaris. In 2020, India earned 
a total of 8.65 million USD from the export of 
mushrooms. 
Highly Priced Mushrooms 
In mushrooms, there are some species like 
Morchella esculenta, Shiitake, and caterpillar 
fungus (Cordyceps militaris) that are highly priced. 
These grow in natural habitats in soil and wood in 
forests and are a major source of income to the 
rural folk who collect them, as well as a source of 
foreign earnings. While M. esculenta could not be 
still successfully cultivated artificially, technology 
for the commercial cultivation of other two 
species is available. Morchella esculenta is one of 
the economically important species which grow 
naturally in the higher-altitude villages of Central 
Himalaya and is locally known as ‘Guchhi’. It has a 
wide distribution in India and is very common in the 
temperate zones and forests of Himachal Pradesh, 
Jammu and Kashmir, and Uttarakhand. 
India is a major exporter of these morels 
(Guchhi) and annually exports 50-60 tonnes of 
dry morels. Among other species of mushrooms, 
Shiitake (Lentinula edodes) is a real culinary delight 
with exceptional medicinal benefits. The proteins 
in Shiitake are composed of 18 types of amino 
acids with richness of leucine and lysine, which are 
deficient in many grains. Shiitake is also rich in over 
30 enzymes. Technology for cultivation of Shiitake 
mushroom has been developed by the Directorate 
of Mushroom Research and also at Indian Institute 
of Horticulture Research, Hessaraghatta, Bengaluru. 
Time of cultivation of Shiitake mushroom has been 
reduced from more than three months to less than 
2 months. This priced mushroom can fetch from 
Page 5


17 Kurukshetra       March  2024
Mushroom Cultivation Mushroom Cultivation
A Fruitful and Lucrative Industry A Fruitful and Lucrative Industry
* Dr. Harender Raj Gautam
** Dr. Dharmesh Gupta
* The author is Former Professor and Head, Dr. Y.S.Parmar University of Horticulture and Forestry, Solan Himachal 
Pradesh. Email: hrg_mpp@yahoo.com 
** The author is Principal Scientist, Dr.Y.S.Parmar University of Horticulture and Forestry, Solan Himachal Pradesh.
Mushroom cultivation is one of the most profitable agriculture entrepreneurs. Integrating 
mushroom cultivation in the existing farming systems will supplement the income of 
the farmers and promote proper recycling of agro-residues. Mushrooms can supplement 
and contribute in achieving nutritional and food security. India can emerge as a major 
player in mushroom production if we efficiently plan to harness the availability of plenty 
of agricultural residues and labour. 
ushrooms are edible fungi that 
grow in natural habitats in the wild, 
on soil, and on wood. Scientists 
have recognised more than 
14,000 species of mushrooms, of 
which approximately 2000 are edible. These wild 
edible fungi have been collected and consumed by 
people for thousands of years in over 85 countries. 
The archaeological record reveals edible species 
associated with people living 13,000 years ago in 
Chile, but it is in China where the eating of wild 
fungi is first reliably noted, several hundred years 
before the birth of Christ. The use of wild edible/
medicinal mushrooms in India during the pre-
historic  period  finds references in ancient Vedic 
literature dating back to 3,000 B.C. and ‘Soma’, 
a divine drink of immortality, extracted possibly 
from Amanita muscaria, was known to the Aryans. 
M
18 Kurukshetra       March  2024
Button mushroom
Edible fungi were collected from forests in ancient 
Greek and Roman times and were highly valued by 
high-ranking people. Caesar's mushroom (Amanita 
caesarea) is one such example, which is very popular 
edible mushroom and was a favourite of early rulers 
of the Roman Empire and has been so for more 
than 2000 years in Italy. This quest for edible fungi 
and their emerging importance in food developed 
mushroom cultivation as an entrepreneur industry.  
Present Production Scenario 
Global mushroom production was 44.2 
million tons in 2021 (FAOSTAT, 2023) with the 
highest contribution from shiitake mushroom 
(26%), followed by oyster mushroom (21%), black 
ear mushroom (21%), button mushroom (11%), 
Flammulina (7%), paddy straw mushroom (1%), and 
others mushrooms (13%). India produces around 
0.28 million tonnes of mushrooms every year.  In 
India, per capita consumption is about 90 g, which 
is less compared to other countries, including the 
USA (1.49 kg) and China (1.16 kg). The cultivation 
of mushrooms was first started in 1961 at Solan 
in Himachal Pradesh. Initially, the scientists at 
the Department of Mycology and Plant Pathology 
of the then College of Agriculture, which is now 
elevated to Dr. Y.S. Parmar University of Horticulture 
and Forestry at Nauni and officials of the State 
Department of Horticulture have credit in generating 
the production technology, human resources, and 
popularisation of mushroom cultivation among the 
farmers in the country. As the mushroom cultivation 
gained adoption and keen interest among the 
farmers, the Indian Council of Agricultural Research 
(ICAR) established the National Research Centre for 
Mushrooms (NRCM) at Chambaghat, Solan in 1983 
and then elevated the centre to the Directorate 
of Mushroom Research (DMR) in 2008. Solan city 
being the epicentre of mushroom cultivation from 
the beginning, was declared as ‘The Mushroom City 
of India’ by the State Government on 10
 
September 
1997. 
In India, button mushroom is the major 
species under cultivation, with a contribution of 
around 70%, followed by Oyster mushrooms (17%), 
paddy  straw mushroom (9%), and milky mushroom 
(Calocybe indica) (3%). Other mushroom species 
like Shiitake, Cordyceps militaris, Ganoderma, etc. 
account for the remaining one per cent. Bihar is 
the major producer with a production of around 
35.6 thousand tonnes with 11% share in total 
production. Odisha, with around 34.5 thousand 
tonnes of production is the second-highest 
producer, followed by Maharashtra (32.5 thousand 
tonnes), Uttar Pradesh (23.4 thousand tonnes), and 
Uttarakhand (22.4 thousand tonnes). The northern 
states of Punjab, Haryana, and Himachal Pradesh are 
majorly focused on button mushroom cultivation. 
These states have become the hub of compost 
preparation and seasonal button mushroom 
cultivation during the months of September to 
mid-March. Milky mushroom is a kind of native 
to tropical States, i.e. Southern India, while Paddy 
straw mushroom is mainly grown in Odisha and 
Chhattisgarh due to the availability of paddy straw 
as a substrate material. Various promising, short 
duration, and improved strains of other mushrooms 
such as Shiitake, Hericium, Ganoderma have been 
developed, which can be promising alternatives for 
the farmers in future.
Mushroom Cultivation- Efficient Way of Agro-
industrial Waste Disposal and Zero-Emission 
Strategy for Food Production 
Mushroom cultivation is a unique way of 
efficiently using microbial technology for the 
bio-conversion of the agricultural, industrial, 
forestry, and household waste into nutritious and 
proteinaceous food. India produces about 650 
million tonnes (MT) of crop residues every year 
(NITI Aayog, 2023), out of which 368 MT comes 
19 Kurukshetra       March  2024
from cereal crops, out of which rice and wheat 
contribute about 154 and 131 MT, respectively. It is 
estimated that there is a surplus of 178 MT of crop 
residues every year out of which 87 MT is burnt 
leading to pollution which is a major contributor of 
climate change. Currently, we are using only 0.03% 
of these residues for mushroom production. 
Mushrooms can be grown successfully on 
most of the waste of agricultural and forest origin, 
which can turn these lignocellulosic residues into 
value-added products such as food, medicine, 
feed, fuel, compost, and manures. Their use in 
mushroom cultivation can serve as a valuable 
resource leading to economic growth instead of 
causing environmental pollution and subsequent 
health hazards due to incineration. If we make use 
of agricultural waste for mushroom production, 
India can produce 3 million tonnes of mushroom 
and about 15 million tonnes of bio-compost. For 
example, in Japan, mushrooms account for 44% 
of the production value generated in the forestry 
industry, which utilises forests that occupy nearly 
70% of the country's land. India can emerge as 
a major player in mushroom production if we 
efficiently plan to harness the availability of plenty of 
agricultural residues and labour. Utilisation of agro-
residues for mushroom production will not only 
help to reduce environmental pollution but it can 
also generate a lot of employment opportunities.
Mushroom Cultivation- Profitable Venture 
Mushroom cultivation is one of the most 
profitable agriculture entrepreneurs. Mushrooms 
are cultivated indoors and do not require arable 
land. At present, four mushrooms viz., Button 
mushroom (Agaricus bisporus), Oyster Mushroom 
(Pleurotus spp), Paddy straw mushroom ( Volvariella 
spp.), and Milky mushroom (Calocybe indica) have 
been recommended for year-round cultivation in 
India. Some mushrooms like oyster, paddy straw 
and milky mushroom require simple cultivation 
technology and can be easily adopted by the 
growers. The cultivation methods for sub-tropical/
tropical mushrooms like Lentinula, Flammulina, 
Auricularia, Agrocybe, Stropharia, Macrocybe, 
Hericium, Ganoderma, etc. have also been 
standardised in India. Farmers can start cultivation 
even in small rooms with minimum infrastructure. 
These are grown seasonally as well as in state-of-
the-art environmentally-controlled cropping rooms 
all year round in the commercial units. It is a short-
duration crop, ranging from 1-3 months depending 
on the different mushroom species with high yield 
per unit time. A minimum viable controlled unit of 
white button mushroom needs an area that is even 
less than 0.1 ha. Farmers with zero-energy poly 
tunnel technology of button mushrooms growing 
can earn ranging from Rs. 40,000 to 50,000 from 
500 bags from a small room of 100-120 square feet 
in a duration of 3-4 months. Farmers with minimum 
investment and land can start this venture. The 
profit margins are 25-30 per cent higher in bigger 
units due to controlled environment conditions. 
Cultivation of Shiitake mushrooms is comparatively 
more profitable and the farmers fetch higher price 
and can earn ranging from Rs. 45,000 to 70,000 
from 500 bags. 
Mushroom cultivation can support the 
livelihood of small and marginal farmers 
economically as well as nutritionally. Mushrooms, 
like oyster can be grown on locally available 
agricultural and agro-industrial wastes and no 
sophisticated infrastructure is required which 
makes the operational cost as low as Rs. 30-40 
per kg of mushroom. Thus, with such minimum 
requirements, mushroom farming is a promising 
diversification alternative. The Directorate of 
Mushroom Research is a leading institution in 
supporting the establishment of mushroom units 
of different scales. The institute prepares techno-
economic feasibility reports for setting up button 
mushroom growing units to a capacity level of 500 
tonnes per annum and also for growing Oyster, 
Ganoderma, Shiitake, and Cordyceps, as well as for 
establishing spawn production units. In addition, 
other agricultural institutes and universities also 
provide such facilities. Based on these techno-
economic feasibility reports, Public Sector and 
other banks provide funding to start such ventures. 
Government of India and different State Governments 
also provide financial support in the form of 
subsidies to support farmers and entrepreneurs. 
Government of India sponsored schemes 
like the Mission for Integrated Development of 
Horticulture (MIDH) and the National Bank for the 
20 Kurukshetra       March  2024
Agriculture and Rural Development extend financial 
support for the establishment of mushroom farms. 
In  many such financial support schemes, Agriculture 
Infrastructure Fund (AIF) is a  medium-long-term 
debt financing facility scheme that was launched 
by the Central Government in 2020, which also 
supports the establishment of mushroom-growing 
units. Under this Scheme, one lakh crore rupees is 
to be provided to the farmers and entrepreneurs 
for some selected agriculture-based ventures, 
including mushroom cultivation by banks and 
financial institutions with interest subvention @ 3% 
and Credit Guarantee facility. The Government of 
India has already sanctioned Rs. 32,472 crore worth 
of 43,318 projects, under AIF till November 2023 
to fund such agriculture-based projects including 
mushrooms.
Medicinal and Nutraceutical Properties 
Mushrooms have long been valued as 
medicinal and nutritional rich food around the 
world. The food and Agriculture Organization 
(FAO) has recommended mushrooms as a protein 
food, especially for developing nations. Mushroom 
species such as Ganoderma, Lentinus, Auricularia, 
Hericium, Grifola, Flammulina, Pleurotus, Tremella, 
and Cordyceps have high potential medicinal and 
functional properties. Ganoderma species (ling zhi or 
reishi) are the most valuable medicinal mushrooms 
and the global value of dietary supplements 
made out of Ganoderma has been estimated to 
be USD 1.6 billion per annum. Mushrooms are 
rich in proteins, vitamins, minerals and are low in 
fat and sugar, which is why they are considered a 
super food. Mushrooms contain a good amount of 
quality proteins (30-40% on dry weight basis) and 
are also rich in essential amino acids required for 
good health. Mushrooms are rich in amino acids 
like leucine and lysine, which are commonly lacking 
in many staple cereal foods. Mushrooms are low in 
sugar and fat and are thus very useful for the people 
suffering from diabetes and heart-related problems. 
Mushrooms provide several groups of vitamins, 
particularly vitamin D, thiamine, riboflavin, niacin, 
biotin, pantothenic acid, and ascorbic acid. Being 
the only vegetarian source of vitamin D, mushrooms 
can be very helpful in alleviating the prevalent 
vitamin D deficiency among the masses. Moreover, 
mushrooms are also rich in various minerals like 
phosphorus, zinc, manganese, potassium, copper, 
selenium (an antioxidant), iron, magnesium, etc. 
Incorporating mushrooms into diets at least twice 
a week is reported to reduce the risk of the early-
stage of memory loss. Many commercial products 
made from different medicinal mushrooms are 
available in the market and some prominent among 
these are Lentinan from Lentinus edodes, Concord 
Sunchih and Reishi Plus from Ganoderma lucidum, 
Grifon from Grifola frondosa, Mycoformulas 
Endurance from Cordycep sinensis and Didanosine 
from Cordyceps militaris. In 2020, India earned 
a total of 8.65 million USD from the export of 
mushrooms. 
Highly Priced Mushrooms 
In mushrooms, there are some species like 
Morchella esculenta, Shiitake, and caterpillar 
fungus (Cordyceps militaris) that are highly priced. 
These grow in natural habitats in soil and wood in 
forests and are a major source of income to the 
rural folk who collect them, as well as a source of 
foreign earnings. While M. esculenta could not be 
still successfully cultivated artificially, technology 
for the commercial cultivation of other two 
species is available. Morchella esculenta is one of 
the economically important species which grow 
naturally in the higher-altitude villages of Central 
Himalaya and is locally known as ‘Guchhi’. It has a 
wide distribution in India and is very common in the 
temperate zones and forests of Himachal Pradesh, 
Jammu and Kashmir, and Uttarakhand. 
India is a major exporter of these morels 
(Guchhi) and annually exports 50-60 tonnes of 
dry morels. Among other species of mushrooms, 
Shiitake (Lentinula edodes) is a real culinary delight 
with exceptional medicinal benefits. The proteins 
in Shiitake are composed of 18 types of amino 
acids with richness of leucine and lysine, which are 
deficient in many grains. Shiitake is also rich in over 
30 enzymes. Technology for cultivation of Shiitake 
mushroom has been developed by the Directorate 
of Mushroom Research and also at Indian Institute 
of Horticulture Research, Hessaraghatta, Bengaluru. 
Time of cultivation of Shiitake mushroom has been 
reduced from more than three months to less than 
2 months. This priced mushroom can fetch from 
21 Kurukshetra       March  2024
Farmer growing Oyster mushrooms in Spiti valley (cold deserts) of Himachal Pradesh
Rs. 750- 1000 per kg as fresh and these can also be 
dried. Another highly priced mushroom is caterpillar 
fungus (Cordyceps militaris) and this mushroom in 
dried form fetches more than Rs. one lakh per kg. 
This is also found in natural habitats in higher hills 
and is widely distributed in patches and is reported 
to be found at elevations of 3000- 5000 m in Nepal, 
Bhutan, India, and Tibet. It is collected from Chamoli 
district and some other parts of Uttarakhand in the 
months of May-June. This mushroom apparently 
has many medicinal benefits and is said to have 77 
micro and macro substances, 80 varied enzymes, 
invaluable amino acids, vitamins, minerals, and 
unsaturated fats, all of which give the mushroom 
its rich medicinal value. Now, technology for the 
cultivation of this mushroom has been developed 
and some farmers are growing this mushroom from 
which some important medicines and energy booster 
products are made that are commercially available 
in the market. 
Success Stories 
There are hundreds of success stories of 
mushroom cultivation in India where individual 
farmers ventured into this technical trade and 
became successful entrepreneurs. Dr. Sangam 
Kurade from Goa is the founder of India’s largest 
mushroom producer company which revolutionised 
the mushroom cultivation industry in India, 
produces 18000 kg of button and other mushrooms 
daily. Himalaya Food Company at Paonta Sahib 
in Himachal Pradesh has an installed capacity to 
produce more than 10,000 tonnes of mushrooms 
annually. Vikas Mushroom Farm was established by 
Vikas Benal initially at Solan in Himachal Pradesh has 
now been expanded to a fully automated mushroom 
compost with growing unit set up in Mohali, Punjab, 
with a capacity of 6,000 metric tons of compost and 
600 metric tonnes of mushrooms per annum. Jiwa 
Foods Private in Raigad, Maharashtra is also one of 
the largest Mushroom Producers with a capacity of 
4000 kgs of mushrooms per day.  
Bajwa Mushroom Farm in Bhor Saidan in 
Kurukshetra, Haryana is a global distributor with 
over 10,000 clients and employ more than 1000 
workers.  According to the CEO, Sardar Harpal Singh 
Bajwa, they are putting to use more than 2000 
tonnes of wheat and paddy straw and producing 
more than 600 tonnes of button mushrooms 
annually. In addition, they also produce 500 
tonnes of spawn (mushroom seed). Shubam Modi 
of Ranchi is another successful mushroom grower 
who produces 60 tonnes of mushroom every 
month. Two brothers, Rishabh Gupta and Ayush 
Gupta, after leaving their high-professional jobs are 
growing button mushrooms at Shamsabad, Agra in 
Uttar Pradesh. They are earning daily Rs. 2.0 lakh 
with a net profit of more than Rs. 70,000. Santosh 
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