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org (E-ISSN 2348-1269, P- ISSN 2349-5138)

COMPREHENSIVE STUDY ON MARKETING

OF OYSTER MUSHROOM IN GAYA
DISTRICT OF BIHAR IN SPECIAL
REFERENCE TO ODOP
Vishva Mohan Kumar, Dr. Ashish S Noel
MBA (Agribusiness), Professor,
Department of Agricultural Economics
Sam Higginbottom University of Agriculture Technology and Science, Prayagraj, Uttar Pradesh

Abstract : The market for mushrooms continues to grow due to interest in their culinary, nutritional, and
health benefits. They also show potential for use in waste management. The Indian mushroom market is
primarily driven by growing health consciousness among the consumers along with the escalated need for rich
nutrients and cholesterol free food products. Furthermore, the emerging trend of veganism and the widespread
adoption of mushrooms as a substitute for meat on account of their rich umami taste are also propelling the
market growth in the country. The increasing utilization of mushrooms in dietary supplements as they contain
a rich amount of fibre and digestive enzymes that promote gut and immunological health is catalysing the
product demand naturally. Moreover, India is getting numerous export opportunities due to the elevating
requirement for processed mushroom variants, especially across western countries, this resulted in creating a
positive outlook for the regional market. Apart from this, continuous advancements in mushroom packaging
technologies, such as the development of humidity-regulating packaging materials that prevent water
condensation on mushrooms to extend their shelf-life are also augmenting the market growth. Furthermore, the
rising usage of mushrooms by the pharmaceutical industry for the treatment of several diseases such as
hypercholesterolemia and hypertension, is acting as another growth-inducing factor. In addition to this,
significant investments in smart automation technologies for mushroom production to enhance the yield and
decrease expenses are expected to fuel the Indian mushroom market over the forecast period

1. INTRODUCTION
Indian agriculture, as it exists today has come a long way from its present image is commercial and traditional
in its method of farming. The latest trends in consumer behavior surges the demand for high quality niche
Products and forces. The Agriculture Sector to step up and adopt commercially, technically, and economically
viable Agribusiness solutions (Shirur et. al., 2016).
Mushrooms are the fruiting bodies of some members of the lower group of plants, called fungi. Due to this
reason the mushrooms are also called fleshy fungi. The fungus and hence mushrooms are characterized by the
absence of chlorophyll which is responsible for imparting green colour to plants. Due to absence of
chlorophyll, mushrooms are not able to synthesize their own food and must depend upon outside sources for
their nutritional requirements. It is because of this that mushrooms grow saprophytically on dead organic
matter or parasitically with other living matter. The mushrooms are fruit bodies or reproductive structures
emanating from mycelium, which under natural conditions remain buried under the soil.
Business and investment opportunities in this sector have suddenly jumped manifold. In the present diet
conscious era mushrooms are increasingly considered as a future vegetable owing to its medicinal and
nutritional properties and consumer demand for mushroom markedly expanded in the recent years. Mushroom
cultivation is unique in the sense that it is the most efficient and economically valuable technology for
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conservation of lingo cellulosic material into high quality protein food. Mushroom cultivation boosts the
income of millions of farmers. Mushroom industry globally has expanded both horizontally and vertically,
meaning that the expansion has been in production and addition of newer types of mushrooms for commercial
cultivation, both edible and non-edible mushrooms.

1.1 ECONOMIC IMPORTANCE AND NUTRITIONAL VALUE OF MUSHROOM

The economic importance of mushroom lies primarily in their use as food for human consumption. The exotic
flavour, taste and fleshiness of mushroom have made it an important delicacy in human diet. Mushroom is
considered to be a complete, healthy food and suitable for all age groups. Though the nutritional value is
determined by the type, stage of development and other environmental conditions, mushrooms are rich in
proteins, dietary fibre, vitamins, and minerals. They have insignificant lipid level and high proportion of poly
unsaturated fatty acids resulting in low calorific value.
The protein content, though varies in different mushrooms, is generally high. Mushrooms are an excellent
source of vitamins especially C and B (Folic acid, Riboflavin, Niacin and Thiamine) and minerals like
potassium, sodium, and phosphorus. It also contains other essential minerals like Calcium, Zinc and
Magnesium in traces. Mushrooms are also known to have medicinal values as these have been shown to
promote immune function, boost health, lower risk of cancer inhibiting tumours growth and support body‟s
detoxification mechanism. Mushrooms thus have enormous potential for production as quality food.

1.2 ORIGIN OF MUSHROOMS

Mushroom production in Asian country started 1000 years ago. Cultivation of mushrooms is relatively new
phenomenon in India. Mushrooms such as Auricularia, Flammulina and Lentinula were most likely cultivated
for the first time around the year 600-800 AD in China and Asian countries (Chang and Wasser,2017).
Scientific cultivation, however, started only at the beginning of the 20th century, when pure cultures of
mushroom were prepared from the store and tissue. Cultivation in the beginning of the 20th century was
focused on button mushroom mainly in USA and Europe. In first half of the 20th century the focus was on
cultivation of button mushroom in the west and to a lesser extent on shiitake in the east.
In the second half of the 20th century, there were rapid changes in the rate of growth of mushroom production
and number of species brought under commercial cultivation. By the end of 20th century, the share of button
mushroom in total world production was less than 40%, which in next ten years became around 30%. During
21st century, particularly last ten years, has witnessed sudden rapid rise in cultivation of mushroom other than
button.
1.3 STATEMENT OF THE PROBLEM
Mushroom cultivation has emerged as a key economic driver in Gaya District, Bihar, owing to its inclusion in
the 'One District One Product' scheme(http://mofpi.gov.in , 2021). However, the effectiveness of government
schemes in promoting mushroom cultivation and marketing and their impact on the local industry require in-
depth examination. This study seeks to address these concerns and assess the overall success of these
initiatives.
1.4 JUSTIFICATION OF THE PROBLEM
The mushroom industry in Gaya District plays a pivotal role in rural livelihoods, employment generation, and
the enhancement of nutritional outcomes. With the government's active support through the 'One District One
Product' scheme, there is a need to evaluate the efficiency of these interventions. This study aims to provide a
comprehensive analysis, which can guide policy enhancements, drive sustainable mushroom farming
practices, and contribute to the socio-economic development of Gaya District.
2. RESEARCH METHODOLOGY
2.1 Sampling design:
Multistage stratified random sampling procedure was adopted for the present investigation to select the
ultimate unit of the sample.
1. First stage - Selection of District
2. Second stage - Selection of Block
3. Third stage - Selection of Village
4. Fourth stage - Selection of Respondent
2.1.1 Selection of District: - There are 38 districts in Bihar state. Out of this Gaya district of Bihar was
selected. The Paddy is the major crop in this district. Paddy is cultivated on a commercial scale due to suitable
agro-climatic conditions prevailing in the study area. Gaya district was selected for the study based on the fact
that government and district authority has focused on mushroom production in the last few years.

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2.1.2 Selection of Block:- There are 24 development blocks. Gaya Nagar block was selected purposely
because the production of mushroom here was highest among all blocks.
2.1.3 Selection of villages:- Out of 89 villages falling in the Gaya Nagar development block, approximately
10% i.e. 9 villages was selected randomly for primary data collection.
2.1.4Selection of Respondents:- Approx. 1000 farmers were trained in the year 2023 according to Gaya
district official. Record of the trained farmers was collected and 10% from that will be chosen as sample
respondents.

3. RESULTS AND DISCUSSION

3.1 EXPERIENCE IN MUSHROOM ENTREPRENEURSHIP:
table 3.1: experience in mushroom entrepreneurship where, n=100
EXPERIENCE IN MUSHROOM ENTREPRENEURSHIP
S.NO PARTICULAR NUMBER PERCENTAGE
1. <2years 49 49.00
2. 2– 5years 51 51.00
TOTAL 100 100.00
The study shows that majority of respondents 49% had less than two years’ experience in mushroom production
and remaining 51% of respondents had 2-5 years’ experience in mushroom production.(Table: 3.1)
Entrepreneurial experience would lead to increase the level of knowledge and proficiency in running a
business that also provide an opportunity for potential profit.

3.2 DETAIL DESCRIPTION OF OCCUPATIONAL DISTRIBUTION IN DIFFERENT SIZE OF

FARM GROUPS
table3.2: occupational distribution of sample respondents, where n=100
OCCUPATIONAL DISTRIBUTION:
S.NO PARTICULARS NUMBER PERCENTAGE
One occupation (Primary
1. 43 43.00
occupation)
Two occupations (Secondary
2. 26 26.00
occupation)
Three occupations (Tertiary
3. 31 31.00
occupation)
TOTAL 100 100
Results about occupation indicated that majority of respondents (43%) were following mushroom cultivation
as primary occupation followed by secondary occupation (26%) and tertiary occupation (31%) as the sample
average calculated for the study. (Table 3.2).
3.3 MARKETING CHANNELS INVOLVED IN MARKETING OF MUSHROOM IN THE STUDY
AREA
1. Channel I: Producer→ Consumer
2. Channel II: Producer→ Commission agent/Wholesaler→ Retailer→ Consumer
3. Channel III: Producer→ Retailer→ Consumer
The marketing cost and margins incurred during the marketing of mushroom is presented in (table3.3). The
(table 3.3) showed that the producer share in consumer’s rupee was more in channel-I (100%). Marketing cost
per kg incurred by producer was ₹7.72 in channel-II. This is due to high commission charges and
transportation cost. Commission agent incurred a cost of ₹10.00 and retailer incurred a cost of ₹31.30, this is
mainly due to spoilage at the store. Marketing cost per kg incurred by producer was ₹6.5 and retailer incurred
a cost of ₹30.65 in channel III. This is because of many labour charges and transportation costs. The consumer
paid ₹120.00, ₹164.00, and ₹153.15 per kg on purchasing of mushroom through channels I, II & III
respectively.
Total Marketing Cost was observed to be very less, and producer received high share in the consumer’s rupee

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(100%) in channel I compared to other channels. From above discussion, it may be concluded that the channel
I was found to be more profitable channel from grower’s point of view, Jaypatre et al (2011) analysed price
spread, marketing efficiency and constant in marketing of mango in South Gujarat regions.

The study reveals that the producer share in consumer’s rupee was maximum in Channel I: Producer→
consumer (100%) and minimum in Channel II: Producer→ Commission agent/Wholesaler→
Retailer→ Consumer (60.97%)
Therefore, it could be concluded that linking farmers /producer to the consumer directly without any
intermediaries could be most beneficial to farmers.

table 3.4: Marketing efficiency, marketing margin and marketing costs of mushroom through different
marketing channels:
(Rs/kg)
S.NO PARTICULARS CHANNEL-I CHANNEL– II CHANNEL– III
1 PRODUCER
Gross price received 120 100 110
Marketing cost
a. packing and weighing 1.6 1.6 1.6
b. Transportation - 1.2 0.70
c. Miscellaneous - 4.92 4.20
Total 1.6 7.72 6.5
Net price received 118.4 92.28 103.5
2 Commission agent /wholesaler
Marketing cost - 10 -
a. packing 2.1
b. wastage and spoilage 1.1
c. Transportation 2.61
d. Handling 0.72
e. Market Fee 2.00
f. Rent 0.96
g. Labour wages 0.51
Margin - 9.00 -
Sale price - 119.00 -
3 Retailer
Purchase price - 119.00 110
Marketing cost - 31.30 30.65
(a) Transportation 3.83 4.34
(b) Spoilage 12.28 11.64
(c) Handling 6.5 5.29
(d) Market Fee 8.64 9.38
Margin - 13.70 12.50
Sale price - 164 153.15
4 Consumer
Price paid by the consumer 120 164 153.15
5 Producer’s share in 100 60.97 71.82
consumer rupee
6 Marketing Cost 1.6 49.02 37.15
7 Marketing Margin 00 22.70 12.5
8 Marketing Efficiency 75.23 1.39 2.21
3.4 DIFFERENT CONSTRAINTS IN PRODUCTION AND MARKETING WITH SUITABLE
REMEDIAL MEASURES:
The constraints faced by the mushroom growers in production are presented in the Table4.4 (A). Most of
the mushroom growers were facing contamination of crops, followed by limited knowledge about the

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cultivation of mushrooms, high cost of input’s, pest and disease problems Inadequate of technical labour, non-
availability of good quality of spawn, less availability of technical and financial support for production and
management practices, high rate of spawn, seasonal production, and problem of storing in the order of ranking
starting from the most severe constraint.

Table 3.5: constraints in production of mushrooms

GARRETT
S.NO CONSTRAINTS IN PRODUCTION RANK
SCORE
1 Contamination of cropped bags 81.27 I

2 Limited knowledge about cultivation of mushroom 75.33 II

3 High cost of inputs 74.23 III

4 Pest and disease problem 70.87 IV

5 Inadequacy of technical labour 64.43 V

6 Non-availability of good quality spawn 63.87 VI

Less availability of technical and financial support for production and

7 62.70 VII
management practices

8 High rate of spawn 61.97 VIII

9 Seasonal production 59.67 IX

10 Problem of storing 58.23 X

3.5 CONSTRAINTS IN MARKETING OF MUSHROOM:

The constraints faced by the mushroom growers in marketing are presented in the Table 4.4 (B). the marketing
problems faced by the growers are less knowledge about marketing of mushroom followed by exploitation by
middlemen, limited cold storage facility, non-availability of organized retail market, delayed payment to
produce and high cost of transportation.
table 3.6: constraints in marketing of mushroom

S.NO CONSTRAINTS IN MARKETING GARRETT SCORE RANK

1 Less knowledge about marketing of mushroom 77.30 I

2 Exploitation by middlemen 75.83 II

3 Limited cold storage facility 75.07 III

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4 Non availability of organized retail market 74.60 IV

5 Delayed payment to the produce 72.93 V

6 High cost of transportation 68.20 VI

4.CONCLUSION:
Gaya has a greater potential profit for production of mushroom from abundantly available recyclable agro waste
like cereal based straws, enormous domestic market, relatively cheap manpower, congenial climate, and strong
technical knowhow. However, the strategies and future programmes of government would prove as the catalytic
factors to boost the mushroom enterprise. Capacity building, infrastructure creation and establishment of organized
marketing system by the government and private agencies is the need of the hour.

5.REFERENCES
ARORA, V. P. (2001). Trade and employment opportunities in agribusiness. Agricultural Extension Review,
28(1), 28-30.
CHANG, & WASSER. (2017). The world mushroom industry: trends and technological development.
International Journal of Medicinal Mushrooms, 8(4), 297-314.
http://mofpi.gov.in , (2021)
JAYPATRE, G. S., PATEL, K. S., & AWAGHAD, P. R. (2011). Price spread, marketing efficiency and
constraint in marketing of mango in south Gujarat region. International Research Journal of
Agricultural Economics and Statistics, 2(1), 75-78.
MEHTA, B. K., JAIN, S. K., SHARMA, G. P., DOSHI, & JAIN, H. K. (2011). Cultivation of button
mushroom and its processing: a techno-economic feasibility. International Journal of Advanced
Biotechnology Research, 2(1), 201-207.
SHIRUR, M., SHIVALINGEGOWDA, N. S., & CHANDREGOWDA, M. J., & RAJESH, K. R. (2016).
Technological adoption and constraint analysis of mushroom entrepreneurship in Karnataka.
Economic Affairs, 61(3), 427-436.

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