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India's mushroom sector expands sevenfold, Bihar leads growth push

India's mushroom production has surged dramatically over the past decade, reaching 347,750 tonnes in 2024 from just 51,000 tonnes in 2015. However, experts warn that infrastructure and cold-chain deficiencies could constrain further expansion of the sector.

LSN India · 25 August 2026

India's mushroom sector expands sevenfold, Bihar leads growth push

India's mushroom farming sector has experienced unprecedented growth, with output expanding nearly sevenfold in less than a decade. The rapid increase reflects growing domestic demand and expanding cultivation across multiple states, positioning mushrooms as an increasingly important agricultural commodity for Indian farmers.

Bihar has emerged as the primary growth driver in the sector, leveraging favourable climatic conditions and emerging as a major production hub. The state's leading position underscores mushroom farming's potential as a viable income source for cultivators in eastern India, where the crop's relatively shorter growing cycles and lower land requirements appeal to smallholder farmers seeking diversification.

Despite the impressive growth trajectory, the sector faces significant hurdles that threaten to slow expansion. Productivity levels remain below potential, with yields lagging behind international benchmarks. The absence of adequate cold-chain infrastructure poses a critical challenge, limiting the shelf-life of mushrooms and constraining market access beyond local areas. Transportation and storage bottlenecks have forced many producers to sell in immediate surrounding regions, restricting opportunities for value addition and premium pricing.

Industry observers note that bridging these infrastructure gaps is essential for sustained growth. Investments in cold storage facilities, improved logistics networks, and standardised production techniques could unlock significant value throughout the supply chain. Government support and private sector participation in developing these facilities will likely determine whether India's mushroom sector can sustain its current growth momentum.