In a first-of-its-kind initiative in the country, the N Chandrababu Naidu-led Andhra Pradesh government is set to launch a Mushroom Mission with an estimated investment of ₹13,000 crore, aiming to make the State the largest producer of mushrooms in India.
Following directions from the Chief Minister, officials have prepared a comprehensive action plan for the proposed mission, which is expected to be formally announced shortly, according to official sources.
“The objective of the mission is to position Andhra Pradesh as the country’s top mushroom producer by scaling up annual production to 67,500 tonnes, surpassing Bihar, which currently produces around 45,000 tonnes and is the largest producer at present,” a source told businessline on Sunday.
The proposed mission will primarily focus on small and medium mushroom production units, each spread across about 5,000 sq ft, with the aim of promoting self-employment and creating sustainable livelihood opportunities in rural areas.
Subsidy support
Of the proposed ₹13,000-crore investment, about ₹5,184 crore will be extended as subsidy support, jointly funded by the Centre and the State government, accounting for nearly 40 per cent of the total project cost, according to the mission rollout plan.
The project envisages the establishment of around 1.62 lakh mushroom cultivation and business units across the State. In addition, a limited number of large-scale production units are also planned to strengthen supply and processing infrastructure.
The State government is also looking to leverage its strong network of Self-Help Groups (SHGs) to promote mushroom cultivation at the grassroots level and encourage wider participation among rural women and small entrepreneurs.
The mission will focus on commercially viable mushroom varieties such as milky mushroom, known for its heat resilience, paddy straw mushroom, and button mushroom. The State also proposes to classify mushrooms as agricultural produce under the mission framework to facilitate policy support and market access.
Apart from meeting growing domestic demand, the project report highlights export opportunities, particularly in the Gulf markets, where demand for mushrooms has been rising steadily. Officials said the initiative could potentially replicate the success seen under India’s millet promotion programme by creating a new agri-value chain in the State.
Published on April 26, 2026