Socio-Economic Features, Production and Marketing Status and Challenges in Mushroom Cultivation: Observation’s from Mid Hills of Kangra Farms in Himachal Pradesh, India

With the growing need for high-quality food, mushroom cultivation has emerged as a significant agricultural activity across various regions of the country. This practice requires minimal land and offers a viable employment avenue for small-scale and landless farmers, as well as educated youth and women. Mushroom farming not only generates supplementary income but also utilizes agricultural waste efficiently, thereby enhancing the socio-economic well-being of farming households. In light of these factors, the present study was conducted to assess the socio-economic conditions, production economics, and marketing systems of different mushroom varieties, and to identify key challenges faced by growers in the selected region. Primary data were obtained from 60 mushroom farmers across seven randomly selected blocks in Kangra district, which was chosen purposively. Farmers were classified into small and large categories based on the number of compost bags used, using the cumulative square-root frequency method. Data collection was carried out through a structured and pre-tested questionnaire focusing on various dimensions of mushroom cultivation and marketing. The information was analyzed using suitable mathematical and statistical techniques. Results indicated that the average family size across farms was 5.22, with smaller farms having slightly larger families (5.43) compared to larger farms (4.8). A greater proportion of respondents belonged to joint families (51.67%) than nuclear families (48.33%). Interestingly, none of the mushroom cultivators was under the age of 25. Among the larger farms, 85% of household heads were in the 40–60 age group. The overall sex ratio stood at approximately 994, with large farms exhibiting a higher ratio (1087) compared to small farms (955). Literacy levels among mushroom growers were found to be high, and a notable portion considered mushroom cultivation as either a primary or supplementary occupation. Agriculture was the main source of livelihood for 62% of the population surveyed, with small farms showing a higher dependency on this sector. The data further revealed an inverse relationship between mushroom unit size and landholding size,i.e., as mushroom production increased, the total and cultivated land area declined. On average, cultivated land accounted for 0.3033 hectares, representing 74.34% of the total holding. An economic analysis of button mushroom production showed that net returns both over total and variable costs increased with farm size. Conversely, the opposite trend was observed for oyster mushrooms. The mushroom sector in Himachal Pradesh is experiencing steady growth, signifying its increasing prominence within the state’s agricultural framework. For button mushrooms, fixed costs per 100 bags ranged from 32.80% on small farms to 22.97% on large farms, while variable costs ranged from 67.20% to 72.21%, respectively. Gross returns per 100 bags varied between ₹40,587 and ₹47,109. Net returns per kg ranged from ₹34.08 on small farms to ₹63.73 on large farms. The break-even production level for button mushrooms was found to be 100 kg overall, with small farms needing 150 kg and large farms needing only 69 kg to break even. Key factors influencing production included the number of compost bags, labor availability, plant protection expenditures, and the management index. Regarding marketing practices, three channels were identified. Among these, Channel-2 (Grower → Retailer → Consumer) was most widely used, accounting for 48.16% of the marketed produce and used by 40.60% of growers. Channel-1 (Direct sale to consumers) offered the highest producer share (98.87%) but was used for only 10.55% of the total output. Channel-2 was the most dominant in terms of volume and participation, with 73.65% of the consumer price reaching the producer. In the case of oyster mushrooms, small farms incurred higher production costs (₹17,055 per 100 bags) compared to large farms (₹12,051), primarily due to economies of scale. Although production volume and gross returns followed similar patterns, net returns were lower for small farms due to their higher costs. The break-even point for oyster mushrooms was 100 kg with 39 compost bags. Marketable and marketed surpluses both increased with farm size. Oyster mushroom growers utilized only two marketing channels, with Channel-2 again being the most popular used by 57.69% of growers and accounting for 88.65% of marketed produce.  A comparative assessment between button and oyster mushrooms revealed that button mushrooms generated significantly higher gross returns (₹45,148 per 100 bags) compared to oyster mushrooms (₹21,960 per 100 bags). Button mushroom cultivation involved greater input costs but also provided superior returns, making it more profitable. Fixed costs for button mushrooms (27.31% of total cost) were roughly half that of oyster mushrooms (51.59%). Variable costs were higher for button mushrooms (72.69%) than oyster mushrooms (48.11%), but so were the net returns. In terms of break-even output, button mushrooms required 100 kg while oyster mushrooms required 72 kg to reach a no-profit-no-loss point. While three marketing channels were used for button mushrooms, oyster mushrooms relied on only two. Overall, the study highlights that button mushrooms outperform oyster mushrooms in terms of profitability, due to better consumer demand and more established marketing avenues in the Kangra region. Feedback from farmers and market stakeholders identified several constraints, namely production-related issues, marketing inefficiencies, institutional gaps, and social factors that prevent large-scale adoption of mushroom farming as a full-time agricultural enterprise.