Mushroom Exports From India - A Great Market Opportunity

Mushroom farming in India has begun to gain significant traction, though it remains a smaller part of the agricultural industry. The Indian mushroom market, which was valued at around US$1.18 billion in 2023, is growing at a healthy 12.7 % CAGR, signalling rising domestic consumption and growing mushroom export opportunities.

Now these are mainly due to urbanisation, rising disposable incomes, and growing awareness of mushrooms’ health benefits, leading to this upward trend. As demand grows both locally and globally, mushroom exports from India have started to gain momentum, with more exporters focusing on quality standards, certifications, and building access to newer international markets.

On the global stage, the mushroom market has also seen exceptional growth. Valued at around US$57 billion in 2022, it increased to approximately US$62.4 billion in 2023, and is projected to touch nearly $90 billion by 2027, growing at a CAGR of 9.8%. This global surge is being driven by rising consumption of functional foods, plant-based diets, and the growing use of mushrooms in pharmaceuticals, nutraceuticals, and cosmetics.

Given this scenario, mushroom exports from India will play a key role in meeting global demand, offering excellent opportunities for Indian farmers, exporters, and businesses aiming to enter international markets.

How Much Mushrooms Does India Produce & Export?

India’s mushroom production has been steadily increasing. In 2022, total production had reached approximately 300,000 metric tonnes, with button mushrooms accounting for about 70%, oyster mushrooms 17%, and paddy straw and milky mushrooms comprising the rest.

This growth is the result of increased investment in indoor cultivation methods, farmer training programs, and improved seed/strain availability. Key production hubs like Solan, Haryana, and Odisha have improved and modernised their facilities to improve yield, reduce contamination risk, and meet export-grade standards.

Mushroom exports from India have also seen significant strides. In the financial year 2022–23, India exported approximately 7,768 MT of fresh and processed mushrooms, generating US$16.16 million, a substantial year-over-year increase of around 150–170%. This jump is in part due to improved market linkages, better packaging solutions, and trade promotions through APEDA and state agriculture departments.

The fresh mushroom shipments totalled 613,715 kg, which is worth US$618,550, and were sent to markets like Bhutan, Nepal, UAE, Austria, and Germany, highlighting both regional and global penetration.

Types of Mushrooms Exported by India

India exports a thoughtful mix of mushroom varieties:

• The flagship product is the White Button Mushroom (Agaricus bisporus), valued for its neutrality in taste and adaptability in cooking, accounting for the bulk of exports.
  

• The Oyster Mushroom (Pleurotus spp.) has garnered attention due to its high nutritional profile and strong acceptance in both domestic and international cuisines, often exported fresh or dehydrated. 
  

• Other varieties like shiitake and portobello are exported in smaller quantities but show rising demand, especially in premium and health-conscious markets.
  

• Emerging segments include exotic and medicinal mushrooms, such as Ganoderma (Reishi), enoki, and milky white (Calocybe indica). These varieties are mainly shipped in dried or powdered forms targeted at wellness, homeopathy, and supplement markets. 

While volumes are modest compared to button and oyster types, the margins are considerably higher. India is gradually positioning itself as a niche supplier in this growing mushroom market, leveraging its research institutions and cultivation techniques.

Top Export Countries For Indian Mushrooms

Bhutan

Bhutan leads India's fresh mushroom exports, importing approximately $277,000 worth annually. Geographic proximity allows for quick delivery, ensuring freshness and quality. Bhutanese consumers and restaurants value the affordability and flavour of Indian button mushrooms, making them a dependable export partner.

Nepal

Nepal imports nearly 233 tonnes of mushrooms from India, valued at around $207,000. Proximity facilitates low shipping costs and faster customs clearance. There’s strong urban demand in Nepal for wholesome produce, and Indian mushrooms cater to this need effectively, filling both retail and commercial supply gaps.

UAE

The UAE is a key destination for both fresh and processed Indian mushrooms, such as oyster and shiitake varieties. Indian exporters have scaled to meet the region’s strict HACCP and GMP standards. Premium restaurants and hotels rely on Indian mushrooms thanks to consistent quality, flexible packaging, and robust cold-chain logistics.

Germany

Germany is among Europe’s top importers of dried Indian mushrooms, including oyster varieties and powders used in food processing and nutraceuticals. Compliance with EU pesticide residue limits and organic certification has made Indian mushrooms attractive. Health-conscious German consumers and manufacturers largely prefer organic and value-added products.

Top Mushroom Exporting Countries & Where India Stands

India remains a growing player in the mushroom export field, which is led by countries like the Netherlands, China, and France. The Netherlands dominates global trade in canned and processed button mushrooms, while China exports processed mushrooms such as oyster and dried shiitake. France too contributes significantly to value-added mushroom products.

India’s edge lies in its competitive pricing and specialty varieties, though cold-chain infrastructure and processing remain areas needing scaling. We are carving out a niche in value-added forms like dried, vacuum-packed, and branded mushroom trays. While its volume is smaller compared to the Netherlands or China, mushroom exporters from India are gaining ground in premium markets, especially in the health and organic segments. This comes mainly due to Investments in cold storage facilities, EU-approved labs, and farmer cooperatives.

Leading Mushroom Producing States in India

Bihar

The top contributor to national production, Bihar, recorded nearly 28,000 MT of mushrooms in 2021–22, contributing over 10% of India’s output. Dispersed farmer networks and government support helped achieve wide coverage. Resistance to cold and the scalability of oyster and button varieties have boosted Bihar’s productivity.

Maharashtra

Maharashtra ranks second, contributing about 9.9% of the national total. Its strength lies in button and shiitake production, supported by close proximity to urban markets like Mumbai and Pune, enabling fast distribution and better pricing.

Odisha

Odisha has transitioned from local production to developing centres for oyster and crimini mushrooms, leveraging its humid climate. State-backed agriculture schemes and quality infrastructure are helping local farmers integrate into India’s export value chain.

Haryana

Haryana produces roughly 5.4% of national output, largely button and oyster varieties cultivated in greenhouses. Its adjacency to Delhi enables easy access to cold-chain and export logistics from cities like Mundra.

Punjab

With 400+ mushroom growers producing 45,000–48,000 MT annually, Punjab is a major production centre. Investments in strain improvement and training for oyster and milky white varieties have raised both yield and export readiness.

How to Price Mushrooms for Export

Variety & Form

Pricing differs significantly across mushroom types. Fresh button mushrooms command lower rates than niche exports like dried shiitake or Ganoderma. Exporters must benchmark local offers against global trading hubs to stay competitive.

Certification & Quality

Organic, EU-MRL, HACCP, or GMP certifications can boost prices substantially. Buyers pay premiums for standardised packaging, consistent grading, and verified lab reports.

Market & Volume

Bulk contracts for institutional buys or food processors are priced lower per unit than small orders for specialty grocery retailers. Exporters should adjust pricing by volume, including logistics, duties, and packaging costs.

Logistics & Customs

Fresh exports require cold-chain storage and rapid delivery (via air or reefer trucks), adding to the cost. Export prices must account for transport, refrigerated shipping, customs, and insurance, all of which impact final pricing.

Conclusion

India’s mushroom export industry presents a great opportunity for growers, processors, and exporters. Though India’s global market share is small, it is gradually becoming a valuable source for fresh, dried, and medicinal mushrooms due to steadily rising global demand and domestic production improvements. 

Ashadhan EXIM Pvt. Ltd. specialises in enabling such success, helping partners reach markets with export-grade mushrooms. If you're ready to explore exporting mushrooms or sourcing them for your business, let us help you out.