According to a new report by UnivDatos, The India Mushroom Market is expected to reach USD Million in 2033 by growing at a CAGR of 12.50% during the forecast period (2025-2033F). The leading reason for the India mushroom market’s growth is that more people are becoming aware of the health benefits of mushrooms, specifically their rich plant protein. Additionally, shifting to vegetarian and vegan lifestyles, as well as urbanization, causes demand to rise both for fresh and processed mushroom products. Moreover, governments offering horticulture schemes and subsidies motivate farmers and entrepreneur-farmers to take up growing mushrooms for business.

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For instance, in January 2025, the Bihar government, under the leadership of Nitish Kumar, promoted mushroom farming as a profitable venture by offering substantial support to cultivators. The government aimed to help farmers minimize potential losses by providing financial assistance and guidance.

The Horticulture Directorate of the Agriculture Department launched a “Mushroom Production in Huts” scheme, which covers 50% of the initial setup costs. The scheme operates on a first-come, first-served basis, with each applicant eligible for support for only one unit.

Scheme that drives the growth of the India Mushroom Market:

The common programs like the Mission for Integrated Development of Horticulture (MIDH) scheme also utilize the Mushroom for land mapping in rural areas of India:

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.

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According to the report, the impact of the Mushroom has been identified to be high for the North India area. Some of how this impact has been felt include:

North India dominates the market in 2024. The majority of mushroom growth in India comes from North India, with button mushrooms being the highest produced in Punjab, Haryana, Himachal Pradesh, and Uttarakhand. With the existence of commercial farms, cold chain systems, and food-processing units, the region’s output grows, and products can always be available. This strong ecosystem gives companies the ability to grow and reach both local and overseas customers easily. On 8th September 2022, Chief Minister Jai Ram Thakur performed inaugurations and laid foundation stones of 92 developmental projects worth about Rs. 980 crores at Sidhpur and Cholthara in Dharampur assembly constituency of Mandi district. Jai Ram Thakur also inaugurated the INR 6.4 crore Mushroom Development Centre, and performed the foundation stones INR 2.48 crore Mushroom Compost Making Unit, Sidhpur, and HRTC Workshops at Dharampur and Sarkaghat.

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