Mushroom farming is emerging as one of the most profitable, sustainable, and space-efficient agricultural ventures in India. With the rise of organic food demand and health-conscious consumers, Indoor Mushroom Farming has become a preferred choice for farmers, entrepreneurs, and even urban growers. This modern technique allows year-round production of high-quality mushrooms in a controlled environment, reducing the risks associated with outdoor cultivation.
In this article, we’ll explore the meaning, types, benefits, uses, business potential, and even some historical data of mushroom production in India—covering everything you need to know to start your own Mushroom Farming Business.
What is Indoor Mushroom Farming?
Indoor mushroom farming is the practice of growing mushrooms in a controlled environment like a grow room, basement, greenhouse, or polyhouse. It allows precise control over temperature, humidity, light, and ventilation, creating ideal conditions for year-round production. Unlike outdoor methods, it minimizes risks from pests, diseases, and weather, ensuring consistent yields. In mushroom farming in India, this method is gaining popularity as it requires minimal land, delivers high yields in short cycles, and provides steady income throughout the year. Suitable for both rural and urban setups, it enables farmers to harvest multiple crops annually. With rising demand for nutritious food, expanding export opportunities, and government support, indoor mushroom farming is emerging as a profitable and sustainable mushroom farming business that offers both economic and environmental benefits to growers.
The Rising Popularity of Mushroom Farming in India
Over the past decade, the mushroom industry in India has seen steady growth, driven by rising domestic consumption and expanding export potential. Growing awareness of mushrooms’ nutritional and medicinal value, along with support from government schemes and modern farming techniques, has encouraged more farmers and entrepreneurs to enter the mushroom farming business.
Historical Data: Mushroom Production in India
| Year | Production (in tonnes) | Growth Rate |
| 2015–16 | 1,15,000 | — |
| 2017–18 | 1,25,000 | 8.7% |
| 2019–20 | 1,55,000 | 24% |
| 2021–22 | 2,00,000 | 29% |
| 2023–24* | 2,40,000 (estimated) | 20% |
Source: Directorate of Mushroom Research (DMR), Solan, HP
This steady rise is fueled by urban farming trends, government training programs, and startups investing in Mushroom Farming Business.
Types of Mushrooms Grown Indoors in India
Different mushrooms require different growing conditions, but indoor systems can accommodate most varieties.
1. Button Mushroom: Grown on compost + straw, needs 22–25°C for spawn, 14–18°C for fruiting. Ready in 5–6 weeks. Most popular variety with high market demand.
2. Oyster Mushroom: Uses straw or sawdust substrate, thrives at 20–30°C, matures in 3–4 weeks. Easy to grow, low investment, multiple harvests per cycle.
3. Shiitake Mushroom: Cultivated on hardwood logs or sawdust, needs 10–20°C, ready in 6–8 weeks. Known for medicinal properties and strong export demand.
4. Milky Mushroom: Grown on paddy straw, ideal at 30–35°C, matures in 4–5 weeks. Performs well in hot climates, especially in southern India.
5. Enoki Mushroom: Grown on sawdust + corncob, needs 8–15°C, ready in 6–8 weeks. Premium variety used in gourmet cooking and export markets.
Among these, Button and Oyster mushrooms dominate the mushroom farming in India market due to their high demand and easy cultivation.
Process of Indoor Mushroom Farming
Step 1: Choosing the Mushroom Variety: Select the variety based on market demand, local climate conditions, and budget. Beginners often choose Oyster mushrooms for their easy cultivation and quick returns.
Step 2: Preparing the Substrate: Use straw, sawdust, or compost as the growing base. Proper sterilization is essential to eliminate harmful organisms and ensure healthy mycelium development.
Step 3: Spawning: Mix quality mushroom spawn into the prepared substrate. Maintain optimal moisture and temperature to support quick and healthy mycelium spread.
Step 4: Incubation: Keep the substrate in dark, warm, and clean conditions until the mycelium fully colonizes it, usually taking 10–20 days depending on the mushroom type.
Step 5: Fruiting: Shift to a humid, well-ventilated area with controlled light and temperature to trigger mushroom growth and ensure uniform size and quality.
Step 6: Harvesting: Twist mushrooms gently from the base to avoid damage. Harvest when caps are fully opened, typically within 3–6 weeks of planting.
Step 7: Packaging and Marketing: Pack in breathable pouches or trays to maintain freshness and quickly supply to restaurants, supermarkets, or online buyers due to their short shelf life.
Uses of Mushrooms
Mushrooms are incredibly versatile and serve multiple industries:
1. Culinary Uses: Used in soups, curries, stir-fries, pasta, biryani, and pickles. Their rich flavor and meaty texture make them a favorite in homes, restaurants, and fast-food chains worldwide.
2. Nutritional Value: Packed with protein, vitamins B & D, selenium, potassium, and antioxidants. Low in calories and fat, mushrooms are a healthy addition to balanced diets.
3. Medicinal Benefits: Varieties like Shiitake and Reishi boost immunity, improve heart health, fight inflammation, and are used in herbal medicines for their healing properties.
4. Industrial Applications: Spent mushroom substrate is used as organic compost, while extracts are utilized in cosmetics, pharmaceuticals, and nutraceutical products.
5. Export Potential: Dried, canned, and powdered mushrooms have strong global demand, offering lucrative export opportunities for Indian mushroom farmers.
Benefits of Indoor Mushroom Farming
1. Year-Round Production: Independent of seasonal changes, allowing continuous harvests and steady supply throughout the year.
2. Higher Yields in Small Space: Vertical rack systems maximize space utilization, enabling more production in limited areas.
3. Climate Control: Controlled environment reduces crop failure risks from pests, diseases, and extreme weather conditions.
4. Water and Input Efficiency: Consumes up to 90% less water compared to conventional crops, with minimal fertilizer use.
5. High Profit Margins: Low production costs combined with strong market prices ensure better returns for farmers.
6. Employment Opportunities: Creates income options for rural youth, women entrepreneurs, and even small urban businesses.
Challenges in Indoor Mushroom Farming
1. Perishability: Mushrooms have a very short shelf life, often just 1–3 days without refrigeration, requiring quick marketing or cold storage to prevent losses.
2. Contamination Risk: Requires strict hygiene during spawning, incubation, and harvesting to prevent mold, bacterial infections, or pest infestations.
3. Initial Learning Curve: Farmers need technical know-how for climate control, pest management, and proper handling to ensure consistent yields.
4. Market Fluctuations: Prices can vary seasonally due to supply-demand changes, impacting profit margins if marketing channels are not diversified.
5. Infrastructure Costs: Setting up controlled environments for temperature, humidity, and ventilation can require significant initial investment.
6. Limited Awareness: Many small farmers are still unaware of proper techniques and market opportunities for indoor mushroom farming.
Cost and Profit Analysis for Indoor Mushroom Farming
| Item | Description | Cost / Value |
| Spawn & Substrate | High-quality mushroom spawn and growing material to ensure healthy yield | ₹10,000 |
| Racks & Containers | Durable vertical racks and trays to increase production in limited space | ₹15,000 |
| Humidity & Temperature Control | Equipment to maintain ideal climate for year-round growth | ₹25,000 |
| Miscellaneous | Cleaning tools, packaging materials, and other operational expenses | ₹5,000 |
| Total Setup Cost | Small indoor mushroom unit setup (100 sq. ft.) | ₹55,000 |
| Production | Depending on variety, substrate quality, and technique | 400–500 kg/year |
| Average Price | Retail and wholesale markets based on variety and season | ₹150–₹200/kg |
| Annual Income | With proper marketing and regular harvest cycles | ₹75,000–₹1,00,000 |
| Net Profit | Small setup; larger commercial units can earn lakhs | ₹20,000–₹45,0 00 |
Future Scope of Indoor Mushroom Farming in India
With the mushroom farming business growing rapidly due to rising urban demand, expanding exports, and the booming food processing sector, indoor mushroom farming is projected to become a ₹10,000+ crore industry within the next decade. Its ability to produce year-round, even in small spaces, makes it highly profitable. Additionally, value-added products such as mushroom powder, ready-to-eat snacks, and health supplements are opening new high-margin opportunities for farmers and entrepreneurs. This shift toward processed and packaged mushroom products is set to increase profitability, create jobs, and strengthen India’s position in the global mushroom market.
Final Thought
Indoor Mushroom Farming is a modern agricultural method and a profitable, eco-friendly business opportunity. By maintaining controlled temperature, humidity, light, and ventilation, it enables year-round production, reduces risks, and ensures consistent quality. In mushroom farming in India, this approach suits farmers, agri-entrepreneurs, and urban growers with limited space. Backed by government support and growing demand for nutritious food, it offers steady income and export potential. With proper training, planning, and marketing, indoor mushroom farming can enhance nutritional security, create jobs, and open doors to both domestic and global markets, making it a sustainable and promising venture.