In India, the mushroom production systems are of mixed type i.e. both seasonal farming as well as high-tech industry. Button, oyster, milky and paddy straw mushroom is cultivated in different parts of the country as per temperature profile in different seasons. Two– three crops of button mushroom are grown seasonally in temperate regions with minor adjustments of temperature in the growing rooms, while one crop of button mushroom is raised in North western plains of India seasonally. Oyster, paddy straw and milky mushrooms are grown seasonally in the tropical/ sub-tropical areas from April to October, in the states of Orissa, Maharashtra, Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and North Eastern region of India.

Mushroomunder OrganizedSector

In the background of ground work done and potential of mushrooms as a high value crop in the domestic as well international market, the Indian Government launched a plan to encourage entrepreneurs and business houses to set up high technology farms as industrial ventures. The plan called 100% Export Oriented Units was proposed to provide the benefits and incentives to investors viz. Industrial plots on concessional lease; Duty free import of equipment’s; Easy Exports; Exemption from payment of corporate tax etc.The policy initiatives triggered a good response from entrepreneurs/ investors and several firms established integrated units at different locations by imported technologies. The improved strains of mushrooms along with production technologies were imported. Majority of these units were based on Dutch technology. EOUs thus established had a marked impact on annual mushroom production and average productivity. Many commercial units are located in different regions of our country and produce quality mushrooms for domestic and export market round the year. The present production of white button mushroom is about 85% of the total production of mushrooms in the country.

MushroomunderUnorganizedSector(SeasonalFarming)

A large number of farmers, with in the unorganized sector are growing different types of mushrooms throughout the country, major types being button, Oyster and Paddy straw. Mushroom species grown in particular region depends upon the climate mainly ambient temperature. Majority of the growers operate under low input, low cost cultivation practices.The productivity and product quality under such conditions are below the desired level. The seseasonal farms account for only a small fraction of button mushroom production but account for virtually entire Oyster and Paddy Straw mushroom in India.

ECONOMIC SOF BUTTON MUSHROOM &POTENTIAL

There are number of varieties of mushrooms for which cultivation practices have been developed by the Research Centers, the pioneer efforts made by the Directorate of Mushroom Research. However, the State of Punjab is ideally suitable for cultivation of temperate mushrooms and considering the market preference and predominant share, the economics of button mushroom has been considered. Ideally, for round the year cultivation of mushrooms employing environmental controlled conditions, amediumsized plant would require the different components:Spawn unit,Compost unit, Cropping unit, Post-Harvest unit etc. Depending upon the scale of production,the project needs to be formulated, however, as the majority of growers in the state are either growing crop only seasonally or on a small scale, two models are being discussed in detail. Cultivators are sourcing the compost and spawn from the existing infrastructure created under the public or private sector.

GRANTS/INCENTIVES:

a)Mission for Integrated Development of Horticulture– Horticulture Mission for North East and Hilly States (HMNH) Government of India is implementing the Horticulture Mission for North East and Himalayan States (HMNH), as a sub scheme of Mission for Integrated Development of Horticulture ((MIDH).As per the approval of GOI, mushroom activity is extended assistance as per there vised cost norms for mushroom production unit,spawn making unit and compost making unit. Both public and private sector are eligible for financial assistance.The costnorms & pattern of assistance under HMNH are briefly given below: - (i) Production Unit:Rs.20 lakh/ unit: The financial assistance to the extent of 100% of the project cost for public sector and 40% for private sector for meeting the expend it ureon infrastructure as credit linked backended subsidy is provided. - (ii) Spawn making unit: Rs. 15 lakh/unit: The financial assistance to the extent of 100% of the project cost for public sector and 40% for private sector for meeting the expenditure on infrastructure as credit linked backended subsidy is provided. - (iii) Compost making unit Rs.20 lakh/ unit: The financial assistance to the extent of 100% of the project cost for public sector and 40% for private sector for meeting the expenditure on infrastructure as credit linked backended subsidy is provided.

b)NationalHorticultureBoard(NHB)

The scheme relating to establishment of commercial production as well as projects on Post harvest Management and primary processing of products are eligible for assistanceas per approved cost norms. The projects for establishment of integrated productionunit on Mushroom are extended financial assistance as credit linked back ended subsidy@ 50% of project cost limited to Rs.37.50 lakh in Hilly areas. The Board also supports Post Harvest Management projects relating to Pack House, Refer-Van, Retail Outlets, Primary processing etc., for horticulture produce in project mode as credit linked back-ended subsidy@50% of project cost limited to Rs.72.50 lakh per project in hilly areas.

c)Agricultural &Processed Food Products Export Development Authority(APEDA)

APEDA was established by the Government of India as a premier organisation assisting in development of export in agricultural and food products in country. A number of schemes have been taken up by APEDA for providing assistance for various beneficiaries/ organizations including R&D, Infrastructure Development, specialised transport units, assistance to exporters/ producers, Quality Development etc.

d)Ministry of Food Processing Industries (MOFPI)

The schemes relating to agri culture, horti culture and food process in gare being implemented covering Technology Up-gradation, Establishment/ Modernization of Food Processing Industries. In hilly states including NE region, grant–in–aid up to 33.33% of the cost of plant & machinery and technical civil work is provided. The Ministry implements another scheme for construction of Cold Chain, Value Addition and Preservation Infrastructure. The scheme for Mega Food Parks (MFPS) has been launched to provide adequate/ excellent infrastructure facilities for food processing a long the value chain from the farm to market.

e)Directorate of Marketing & Intelligence(DMI)

The DMI aims at bringing integrated development of marketing of agricultural and allied produce in the country. Besides other schemes, it implements scheme for development/ strengthening of Agricultural Marketing Infrastructure, Grading and Standardization to develop marketing infrastructure in the country to cater to the post harvest requirements of production and marketable surplus of various farm products. The scheme may cover functional infrastructure for collection, drying, cleaning, grading, standardization, SPS (Sanitary &Photo-sanitary) measures and qualitycertification, labeling, packaging, value addition facilities etc. Mobile infrastructure forpost-harvest operations like refrigerated vans used for transporting agricultural produce to maintain cold supply chains are also eligible for assistance under the Scheme.

f)SmallFarmer’sAgricultureConsortium(SFAC)

Small Farmer’s Agri business Consortium (SFAC), a registered society, functioning under Department of Agriculture and Cooperation, Government of India is operating scheme for Agri business Development through venture capital assistance and project development facility. The Venture Capital Scheme aims to promote investments in Agri-business projects with the participation of nationalised banks. The venture capital for agri business up to 10 % of the total project cost or 26% of the total project equity or Rs.75 lakh, which ever is lower is made available for the projects in NE & Hilly states. Inspecial cases, higher venture capital can also be considered by SFAC. The Project should provide assured markets to farmers /producer groups.