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Agriculture
Andhra Pradesh to launch massive ₹13,000 crore mushroom mission
Updated: 29 Apr 2026
3 Min Read

In a first-of-its-kind initiative in India, the N. Chandrababu Naidu-led Andhra Pradesh government is launching a 'Mushroom Mission' with an estimated investment of ₹13,000 crore. Its goal is to make the state the largest mushroom producer in India.
Following the Chief Minister's directives, officials have prepared a comprehensive action plan for the proposed mission, which is expected to be formally announced soon.
The mission aims to increase annual mushroom production to 67,500 tons, surpassing Bihar. Bihar currently produces approximately 45,000 tons of mushrooms and is currently the largest producer.
The proposed mission will primarily focus on small and medium mushroom production units. Each unit will cover approximately 5,000 square feet. It aims to promote self-employment and create sustainable livelihood opportunities in rural areas.
According to the Mission rollout plan, out of the proposed ₹13,000 crore investment, approximately ₹5,184 crore will be provided as subsidy support. This will be jointly funded by the Central and State governments, accounting for approximately 40 percent of the total project cost.
The project plans to establish approximately 1.62 lakh mushroom cultivation and commercial units across the state. Additionally, a limited number of large-scale production units are also planned to strengthen the supply and processing infrastructure.
The State Government is also considering leveraging its strong network of Self-Help Groups (SHGs) to promote mushroom cultivation at the grassroots level and encourage widespread participation of rural women and small entrepreneurs.
The Mission will focus on commercially viable mushroom varieties, such as milky mushrooms (known for their heat tolerance), paddy straw mushrooms, and button mushrooms.
The state government is also proposing to classify mushrooms as an "agricultural product" under this mission to facilitate policy support and market access.
In addition to meeting growing domestic demand, the project report also highlights export opportunities—especially in Gulf markets, where demand for mushrooms is steadily increasing.
This initiative has the potential to replicate the success achieved under India's Millet Promotion Programme by creating a new agri-value chain in the state.
Mushrooms (Agaricus bisporus) are the fleshy, spore-bearing fruiting bodies of fungi belonging to the kingdom Fungi (often the division Basidiomycota). They grow in moist environments, lack chlorophyll, and obtain nutrients by breaking down organic matter.
Popular varieties include white button, portobello, shiitake, oyster, and morels.
Dangerous examples include the death cap (which resembles an edible straw mushroom) and Conocybe filaris.
Rich in fiber, protein, vitamins (B1 to B12), and minerals like potassium. Low in fat and sugar, making them ideal for a healthy diet. Many contain antioxidant, antiviral, and anti-tumor compounds. Mushrooms are a rare vegetarian source of vitamin D.
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