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MUSHROOM PRODUCTION, MARKETING…A GOOD OPTION FOR DIVERSIFIED AGRIBUSINESS Introduction Indian agriculture is the backbone of Indian economy. Today we are growing a variety of agricultural crops and we have achieved food security over 250 million tons of food grains but still we are struggling to achieve nutritional security, apart from that with the rapid growth of our population, the agricultural land depleting at a fast rate. Diversification in agriculture can change our present scenario towards sustainability. As an alternative we can go for Mushroom cultivation. Mushroom is a good source of protein as food and it’s not only works out the nutritional aspect like healthy food, environmental issues, but besides it is a respectable beginning of income generation for small, marginal and large farmers, presently so many farmers are benefited with Mushroom business. Mushroom takes very less area, and it can grow on waste materials also, India is generating 600MT agricultural waste annually, which holds potential to recycle as substrate for Mushroom production so that India has serious potential for mushroom production. Even though landless people can go for Mushroom production, straight off a day’s Worlds so many states as easily as in India for small scale farmers, SHG groups, private companies it is a venture of Agribusiness. Production scenario Fig: By Directorate of mushroom research India delivers a diverse- climate, abundance of -waste, with suitable condition for fungal biodiversity that make India as a major producer of different mushroom species. Presently in India the major mushroom producer states are Punjab, Himachal Pradesh, Jammu and Kashmir, Bihar, Kerala, Tmilnadu, Odisha and Northeast states. Small quantities are produced by Ooty, Dehradun, Bangalore and Pune. In India main cultivated species are Button mushroom, Paddy straw mushroom and Oyster mushroom, out of these the button mushroom share 85% of total production. Drastic change India has been achieved in mushroom production from 5000 metric tons in 1970 to 1,20,000 tonnes in 2011.Current world production as per FAO is 3.5 million tons and major producer nations are China, U.S.A and Netherland, China alone produces 46% of total output in the Earth. India producing 3% of total production of the world. China, 46% USA, 10% Netherland , 7% Poland, 5% France, 4% Spain, 4% India, 3% Itly, 3% Canada, 2% Ireland, 2% Japan, 2% Germany, 1% UK, 1% Others, 10% WORLD PRODUCTION-2008

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Page 1: Mushroom production, marketing…diversified agribusiness

MUSHROOM PRODUCTION, MARKETING…A GOOD OPTION FOR

DIVERSIFIED AGRIBUSINESS

Introduction

Indian agriculture is the backbone of Indian economy. Today we are growing a variety of agricultural crops and we have achieved food security over 250 million tons of food grains but still we are struggling to achieve nutritional security, apart from that with the rapid growth of our population, the agricultural land depleting at a fast rate. Diversification in agriculture can change our present scenario towards sustainability. As an alternative we can go for Mushroom cultivation. Mushroom is a good source of protein as food and it’s not only works out the nutritional aspect like healthy food, environmental issues, but besides it is a respectable beginning of income generation for small, marginal and large farmers, presently so many farmers are benefited with Mushroom business. Mushroom takes very less area, and it can grow on waste materials also, India is generating 600MT agricultural waste annually, which holds potential to recycle as substrate for Mushroom production so that India has serious potential for mushroom production. Even though landless people can go for Mushroom production, straight off a day’s Worlds so many states as easily as in India for small scale farmers, SHG groups, private companies it is a venture of Agribusiness.

Production scenario

Fig: By Directorate of mushroom research

India delivers a diverse-climate, abundance of -waste, with suitable condition for fungal biodiversity that make India as a major producer of different mushroom species. Presently in India the major mushroom producer states are Punjab, Himachal Pradesh, Jammu and Kashmir, Bihar, Kerala, Tmilnadu, Odisha and Northeast states. Small quantities are produced by Ooty, Dehradun, Bangalore and Pune. In India main cultivated species are Button mushroom, Paddy straw mushroom and Oyster

mushroom, out of these the button mushroom share 85% of total production. Drastic change India has been achieved in mushroom production from 5000 metric tons in 1970 to 1,20,000 tonnes in 2011.Current world production as per FAO is 3.5 million tons and major producer nations are China, U.S.A and Netherland, China alone produces 46% of total output in the Earth. India producing 3% of total production of the world.

China, 46%

USA, 10%Netherland

, 7%

Poland, 5%

France, 4%

Spain, 4%

India, 3%

Itly, 3%

Canada, 2%Ireland, 2%

Japan, 2%

Germany, 1%

UK, 1%Others,

10%

WORLD PRODUCTION-2008

Page 2: Mushroom production, marketing…diversified agribusiness

Consumption pattern

Button mushroom holds more attraction among the consumer compared to other species. Maximum sale in India as well as other countries is of fresh mushrooms. Only some produce is canned in India. Belgium, the UK, and Denmark are the biggest consumers of fresh mushroom. Brown as well White mushroom demands as per availability of produce in various countries. The graded, cup and flat shape of mushroom are popular among consumers in good hotels, eating places. China is major producer as well as consumer, they have consumption per capita around 10 Kg/person/year. Compared to them our consumption per capita is very less is about only 30-40 gm./person/year.

Marketing

After production it is very necessary to marketing the product to the right people, at the right time and in the proper manner for effective and efficient marketing.

Mushrooms are perishable in nature and have a short self-life so; to reach from

producer to consumers, it should have good packaging, cold storage during

transportation for ensuring good self-life and good marketing facility. But in India

where these facilities are not common and the marketing system is not organized

care should be taken.

Marketing channels play an important role in the marketing business of any product,

it’s the way by which product reach from producer to consumer by direct or indirect

way. For mushroom marketing in India the main marketing channels are;

(Channel-1)

(Channel-2)

(Channel-3)

(Channel-4)

Grower Consumer

Grower Retailer Consumer

Grower Wholesaler Retailer Consumer

Grower Wholesaler Consumer

Page 3: Mushroom production, marketing…diversified agribusiness

Grower-Consumer (Channel-1)

Grower-Retailer-Consumer (Channel-2)

Grower-Wholesaler-Retailer-Consumer (Channel-3)

Grower-Wholesaler-Consumer (Channel-4)

After surveyed it seems that in India roughly 70-95% marketing through (Channel-1, 2, 3). The highest amount of mushroom is sold by (Channel-1) because producer shares in consumer cost in case of (Channel-1) is high so that producer are getting mare profit.

Main domestic trade markets are Delhi, Pune, Chandigarh, and Mumbai. Now a

day’s small grower, private companies, and SHG groups are running mushroom

business successfully all over India with exporting to other countries also.

Mushroom marketed as fresh, dried and processed mushroom. Consumers demand

now changing from fresh to canned and processed mushroom products in the

market. The main processed products which are highly demanded in the market are

mushroom ketchup, mushroom candy, mushroom murabba, mushroom chip,

mushroom soup powder, mushroom nuggets, mushroom biscuit, ready-to-eat

mushroom curry (RTE) etc.

Mushroom production activity is capital-intensive enterprise, presently financial

assistance available from NABARD, State govt. and Agriculture development board

etc.

Export scenario

The Indian mushroom market is now in developing stage before 1990s the whole

mushroom production consumed domestically, but after 90s scenario is changed at

present India is exporting mushroom to various nations in the globe, major importing

countries are U.S.A, Canada, Germany, France, Japan, Malaysia and Switzerland.

Mushroom recognizing as a high value crop in the international grocery store so that Indian government set in motion a program to encourage entrepreneurs to set up organized, high-tech mushroom farms as business venture called as 100% Export Oriented Units (EOUs).

Total mushroom exported from India in 2009-10 around 11000 tons valued at Rs.66

crore. Major export destined countries were U.S, Israel and Mexico. India mainly

exported fresh and processed mushroom products, button mushroom share about

95% of total mushroom exports from India. Currently India is having only 1% share in

total world export in other side India has great potential of export.

Page 4: Mushroom production, marketing…diversified agribusiness

Conclusion

Even though India has diverse agro-climatic condition and lots of waste materials which support mushroom cultivation in our continent but we are not cognizant of that. It is less capital investment business now capturing market as diversified agribusiness. Mushroom production is an income generating activity now follows in India by so many farmers as well as private companies. India can produce more than 60000 MT of mushroom and has potential to export its 50% to other countries. Indian government to also providing basic assessment to start a mushroom business to the skilled entrepreneurs and trying to set up organized market so that everyone should get the benefit. Presently the continuous increment in demand of mushroom products in international as well national level going to boost mushroom agribusiness in India.

Reference:

www.nrcmushroom.org

www.icar.org.in

www.iihr.res.in

www.Indiastat.com

Authors:

Ajit Kumar Prasad and Ramraj Dhakar

(PGDABM-2013-15)

CCS National Institute of Agricultural Marketing, Jaipur

Email Id: [email protected]