Marketing analysis and value chain study of button mushroom in Dumka District of Jharkhand

Introduction

Button mushrooms (Agaricus bisporus) are one of the most popular and widely consumed types of mushrooms globally, known for their delicate flavor and versatile culinary uses. They are rich in essential nutrients like proteins, fiber, vitamins (especially B-vitamins and Vitamin D), and minerals (such as iron, potassium, and selenium). These nutritional benefits, combined with their low-calorie content, make them a healthy choice in a variety of diets, including vegetarian and vegan cuisines. The mushroom's mild taste also allows it to be easily incorporated into a wide range of dishes, from soups and salads to stir-fries and pizzas. In India, button mushrooms are cultivated across various regions, with favorable conditions present in both temperate and subtropical areas. Among these, Jharkhand has emerged as one of the leading states for mushroom cultivation, contributing significantly to the country's production. Specifically, Dumka district in Jharkhand has shown promise as a notable center for button mushroom farming. The region's climate, along with increasing awareness of mushroom farming, has made it a favourable location for small and medium-scale mushroom farming operations. With proper government support, technological advancements in cultivation and distribution, and the development of value-added products, button mushrooms could become a key agricultural commodity in the region. Moreover, as consumer demand for healthier and sustainable food options increases, mushrooms could gain further traction in both domestic and international markets. Hence, the present study is focused on the following objectives: 1. To study the socio-economic and economic profile of button mushroom growers in the study area. 2. To identify the disposal pattern, marketing cost, marketing margin, and marketing efficiency.

Research Methodology

The present study entitled "Market Dynamics and Value Chain Assessment of Button Mushroom in Dumka District of Jharkhand" was undertaken to analyse the socioeconomic profile of button mushroom growers, to examine the disposal patterns and marketing practices of button mushroom growers. The study was based on a descriptive and analytical research design. It aimed to describe the existing marketing system of button mushrooms and analyse marketing costs, margins and price spread across different channels. Both qualitative and quantitative approaches were used to obtain comprehensive insights into the value chain structure. Multi-stage sampling technique was used to ensure a systematic representation of the respondents, regions, and marketing stakeholders involved in the mushroom marketing. Out of the 24 districts of Jharkhand, Dumka district was selected purposively for the study. Dumka district has witnessed an increasing adoption of button mushroom cultivation due to favorable climatic conditions, availability of agricultural residues, and government support programs. Islamnagar Block was selected purposively due to its significant contribution to button mushroom cultivation and marketing activities. A 5% random sampling approach was used to select 10 villages within the Islamnagar Block. Respondents were selected from various stakeholder groups involved in the button mushroom marketing chain involving consumers, farmers, retailers, distributors and cooperatives/ organizational representatives. Primary data were collected through structured interviews and surveys using pre-tested questionnaires. Secondary data were gathered from industry reports, government publications, and relevant research studies on mushroom farming, marketing, and consumer behavior. This secondary data provided context and support for the primary data analysis.

Data Analysis Techniques

To analyze and interpret the collected data, statistical and econometric methods were used. These included descriptive statistics, such as percentage calculations, Tabular and Chart Presentations, and Averages.

Analytical Tools

The formula for the Arithmetic Mean (commonly referred to as the average) is:

• ∑Xi is the sum of all the values in the data set.

• n is the number of values in the data set.

Averages: Measures like mean, median, and mode were used to describe the central tendency of data on consumer behavior, pricing preferences, and purchase frequency.

Marketing margin

Where M T = Total marketing margin. Si = Sale value of a product for i th firm Pi = Purchase value of a product paid by the i th firm Qi = Quantity of the product handled by i th firm i = 1, 2,………n (No. of firms involved in the marketing channel).

Price spread

Price spread is defined as the difference between the price paid by the consumer and the net price received by the producer for an equivalent quantity of farm produce.

It is expressed as percentage of consumer's price

Marketing Cost

The total cost incurred on marketing by various intermediators involved in the sale and purchase of the commodity till it reaches the ultimate consumer were be computed as follow.

Results and Discussion

The majority of the respondents (33.33%) fall in the 41-50 years age group. This indicates that middle-aged individuals are more likely to engage in button mushroom farming and marketing, possibly due to accumulated experience and financial stability. The 18-30 years age group (22.22%) also shows notable involvement, indicating that younger individuals are beginning to take an interest in mushroom farming, likely driven by opportunities in organic farming and increased market demand for mushrooms. Older individuals (51-60 years, 11.11% and 60+, 5.56%) are less involved, possibly due to health limitations or lack of interest in intensive farming activities like mushroom cultivation.

Monthly Income of Respondents

The majority of respondents (33.33%) earn between ₹10,000 and ₹20,000 monthly, which may represent smallwww.extensionjournal.com scale mushroom producers who supplement their income with other farming activities. A significant number (27.78%) earn between ₹20,000 and ₹30,000, indicating that mushroom farming can be a viable income-generating activity for those who focus on production and marketing. Higher-income groups (> ₹30,000) constitute a small percentage (16.67%), suggesting that those who invest heavily in mushroom farming or commercial ventures may still be in the minority. Lower-income groups (< ₹10,000) still make up a considerable share (22.22%), reflecting that mushroom farming is sometimes undertaken by individuals with fewer resources, often as an additional activity rather than a primary source of income

Marketing Cost

Marketing costs represent the expenses incurred by intermediaries in moving mushrooms from the producer to the consumer. The total marketing cost of ₹95 per unit of button mushrooms includes production, packaging, transportation, and retailing costs. The cost breakdown shows that the largest expenses are related to transportation (₹20) and retailing (₹15). www.extensionjournal.com significant potential as the existing marketing system is inefficient and needs substantial improvements. Producers face high marketing costs, which reduce their overall profit margins. In addition, post-harvest losses during transportation and storage further diminish their returns. The price spread is high, especially in wholesale markets, where the presence of multiple intermediaries results in producers receiving a disproportionately small share of the final consumer price. Key recommendations include improving infrastructure (cold storage, transportation) and enhancing farmers' marketing knowledge. Addressing these issues would increase producers' share of the consumer's rupee and lead to a more efficient marketing system. These improvements would not only benefit producers but also create a more streamlined and profitable mushroom industry. The findings also offer insights for agricultural marketing policies in Jharkhand and similar regions. By focusing on infrastructure and farmer education, the mushroom industry in Dumka can grow sustainably, ensuring better economic returns for farmers and meeting the rising consumer demand for organic produce. Training farmers on pricing strategies, direct sales techniques, and the use of alternative marketing channels could significantly increase their profits. These interventions could contribute to the long-term success and profitability of the industry, providing a scalable model for rural agricultural development across India.

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