Value Chain Analysis of Indian Edible Mushroom
Corresponding email: gcganeshkumar@gmail.com
Published at : 21 Jul 2020
Volume : IJtech
Vol 11, No 3 (2020)
DOI : https://doi.org/10.14716/ijtech.v11i3.3979
Ganeshkumar, C., Prabhu, M., Reddy, S.P., David, A., 2020. Value Chain Analysis of Indian Edible Mushroom. International Journal of Technology. Volume 11(3), pp. 599-607
| C Ganeshkumar | Assistant Professor, Indian Institute of Plantation Management, Bangalore, India and Corresponding author |
| M Prabhu | Assistant Professor, Department of Business Administration, Lebanese French University, Erbil, Kurdistan Region, Iraq |
| Sai Prahlada Reddy | Agribusiness and Plantation Management, Indian Institute of Plantation Management, Bangalore, India |
| Arokiaraj David | Assistant Professor, Jain University, Bangalore, India |
The
purpose of this study is to examine the value chain analysis of, consumers'
awareness level of, and buying motives toward mushroom products. The primary
data were collected through face-to-face interviews and by using a
questionnaire filled out by 70 consumers from various major mushroom production
districts, selected by non-random sampling. Secondary data were collected from
various sources. Based on the data analysis, it was found that around 73% of
consumers preferred to buy their
mushroom products in the supermarket, and 71% of consumers responded that
factors other than the shape, color, and size of mushrooms motivated them to
buy them. The research concludes that urban consumers were well aware of the
nutrition value of mushrooms, but their consumption level was very low compared
to non-vegetarians urban consumer in the studied area. Nearly 30% of
respondents believed a myth about mushrooms having a mold and were prepared
from compost, which causes a bad smell. It was found that that while producers
put forth more effort and energy than other actors into the mushroom value
chain they received less revenue and profit than wholesalers and retailers.
Therefore, policy makers should develop new norms to remove barriers and others
issues to safeguard mushroom producers for sustainable growth of the mushroom
sector in India. In the future, there will be an increase in the consumption of
processed foods. Hence, food companies have to concentrate on mushroom
processing and fresh mushroom production.
Mushrooms; Value chain analysis; Buying motives
Mushrooms are fungal
growth that typically take the form of a domed cap on a stalk with gills on the
underside of the cap. The cultivation of mushrooms is an emerging industry in
many developing countries, such as China, South Africa, Niger, Uganda, Rwanda,
and Kenya. Today China is leading mushroom producers in the world both in
edible and non-edible types of mushrooms. It accounts for 70% of world mushroom
production, and mushrooms are the sixth-most economically important crop for
their country’s revenue generation. At present, 96% of global mushroom
production is done by Europeans, Americans, and East Asian countries. Globally,
there is a huge demand for mushrooms, which
requires more mushroom cultivation. They are mainly cultivated in hilly regions
as they require a low temperature to grow (Zhang,
2019). However, technological advancement
in modern mushroom cultivation has made it possible to cultivate
In spite of all the
major constraints faced by the mushroom industry, the current Indian scenario
is quite encouraging, with an overall increase in production of five to six
times. However, this is very small quantity if the vast market potential of
this large country is to be fully exploited. The mushroom industry has a bright
future in India, chiefly because of a large quantity of agro-by-products and
agro-waste generated as well as the availability of a large and cheap labor
force (Yusuf and Zava, 2019). The table
below shows the total area of mushroom cultivated in India and production
statistics in metric tons.
Table 1 Area and production of mushrooms in India
Mushrooms
|
2014-15
|
2015-16
|
2016-17
|
2017-18
|
2018-19
|
Area
|
Na
|
170
|
183
|
198
|
230
|
Production
|
51
|
436
|
459
|
487
|
503
|
Noted: The area is
in thousand ha; production is in thousand mt
Source: National Horticulture Board, 2018-2019
In india there are five
types of mushrooms produced: white button mushrooms, oyster mushrooms, paddy
straw mushrooms, shitake mushrooms, and milky mushrooms. Out of these, the main
three types—white button, oyster, and milky mushrooms—are very popular and comprise
90% of production in india. India consumes 1000 tons of mushrooms per year. An
increase in purchasing power has changed the taste and preference of consumers,
which help the mushroom market growth (Wakchaure
et al., 2011a). Mushrooms are a high-value
niche product with great potential to contribute to poverty reduction by
properly utilizing agricultural wastes (Yu et al.,
2009). Properly disposed waste materials can be converted into compost
for the betterment of efficient agricultural processes (Sharma
et al., 1997). Mushroom producers had difficulties getting compost due
to limited markets available in their locality (Sudhakar
et al., 2017). Although it is inexpensive to produce mushrooms in major
production areas, the farmers and mushroom companies have struggled to identify
the product value to fulfill the needs and wants of consumers (Karthick and Hamsalakshmi, 2017).
In
India, around 40 g per capita of mushrooms are consumed, whereas in the USA,
Australian, and Canada people consume 2-3 kg per
capita. In India mushrooms, their nutritional benefits and importance are not
known among the public. Many mushroom varieties are not available in local markets. Around
73% of consumers preferred to only buy their mushroom products in the supermarket.
Seventy-one percent of consumers responded that factors apart from the shape,
color, and size of mushrooms motivated them to buy mushrooms. The consumers were asked
about where they preferred to eat mushrooms; 63% liked to eat in hotels and
restaurants. Around 33% of consumers consumed mushrooms every 2 to 4 months,
and 31% consumed them once in a month. The majority of consumers preferred to
have mushroom soup when compared to other value-added mushroom dishes. Companies like ITC have to create more mushroom
awareness campaigns and to increase the productivity of mushrooms. Domestic
marketing does not pose a problem at present because only small quantities of
mushrooms are being traded. As production develops, marketing promotion
measures will need to be undertaken to bolster
demand. In the future, there will be an increase in the consumption of
processed foods. So, food companies have to concentrate on mushroom processing
and fresh mushrooms. Therefore,
efforts should be made to increase production and to solve future marketing problems through right kind and effective
government rules and regulation in India.
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