According to the UnivDatos, rising demand for plant-based protein, growth of vegetarian and vegan lifestyles, urbanization and changing food preferences, government support and subsidies, high nutritional value, short cultivation cycle & high yield, increased health & wellness drive the India Mushrooms market. As per their “India Mushrooms Market” report, the Indian market was valued at USD ~613.56 million in 2024, growing at a CAGR of about 12.50% during the forecast period from 2025 - 2033 to reach USD million by 2033.
The mushroom industry in India is changing rapidly due to vigorously increasing demand, rising concern for health, cultivation helmed by the government, and growing exports of quality products. Mushroom farming was once looked upon as a small agricultural activity, but now it is fast fast-growing and provides many benefits for employment, rural improvements, and earning foreign currency. This article looks at the main reasons behind India’s growing mushroom market, discussing help from the government, trends in exports, and why medicinal and exotic mushrooms are now becoming popular.
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Support and Latest Schemes by the Government are Encouraging the Growth of Mushroom Farming.
Recognizing mushrooms’ high returns, low demand for land, and speedy turnaround, the Indian government considers mushroom cultivation a promising agro-enterprise. The MIDH and NHB support from the government helps to promote mushroom farming by providing money, training, and up-to-date methods.
Growers under MIDH scheme can receive up to half (50%) of the financial support it need to develop infrastructure, say for building mushroom production units, spawn laboratories, and treatment units for creating compost. MIDH set up workshops and training programs mainly for rural youth and women entrepreneurs to teach them new ways of growing mushrooms.
Operational Guidelines: Mission for Integrated Development of Horticulture, 2025
Mission for Integrated Development of Horticulture (MIDH) is a Centrally Sponsored Scheme for the holistic growth of the horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers, medicinal & aromatic plants, coconut, cashew, cocoa, bamboo, and other horticulture crops. While the Government of India (GOI) contributes 60% of the total outlay for developmental programmes in all the States except the States in Northeast and the Himalayas, 40% share is contributed by State Governments.
The PM-FME scheme by the Ministry of Food Processing Industries is allowing micro mushroom processing units to grow using credit-linked subsidies and the formation of clusters. Using these arrangements is increasing the quantity of products farmers produce, and it is letting more of them enter the commercial market. On December 8, 2023, "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" was launched under the Atmanirbhar Bharat Abhiyan with an outlay of Rs. 10,000 Crore to support 2 lakh micro food processing enterprises following the One District One Product (ODOP) approach.
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Export Potential and Processing Trends
With each passing year, India has grown into an important country in the world’s mushroom business, largely focused on processed mushrooms. Indian mushroom exotic exports usually come in canned, dried, and frozen forms, with the U.S., the UAE, Russia, and European countries as the major buyers.
Moreover, states such as Punjab, Haryana, Uttar Pradesh, and Himachal Pradesh produce most of the vegetables and also have processing hubs to make them easier to export and use by dehydrating, canning, and powdering. The rise in popularity of easy-to-use and shelf-stable foods is also leading to an increase in the use of mushrooms in soups, seasoning powder, snacks, and meal kits.
Many companies in the food business are rivaling this trend by offering innovative dishes with oyster, button, and shiitake mushrooms. Importantly, the combination of cold chain facilities and FSSAI certifications is making it easier for small and medium-sized enterprises to export their products.
India's Mushroom Revolution
The mushroom industry in India is currently facing an important change due to backed government programs, better technology, and shifting customer preferences towards healthier foods. As people recognize that mushroom farming is a profitable model, the sector is set to help create jobs, boost India’s export economy, and support the country’s efforts to ensure enough food for its people.
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