e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:03/March-2022 Impact Factor- 6.752 www.irjmets.com

MARKET ANALYSIS OF MUSHROOM AND BUSINESS PLAN

DEVELOPMENT IN SIKKIM
Tshering Chukki Tamang*1, Ashish Chhetri*2
*1,2Parul University, MBA Agribusiness Management, India.
ABSTRACT
Mushrooms are edible fungus body which are not only delicious to consume but are proteinaceous as well.
Mushroom provides important nutrients; different mushroom has varying composition and nutritional profile.
People are slowly getting aware of its taste and value and have gradually started to increase their consumption.
The demand of mushroom is seen high in market but the supply seems to be poor in the state of Sikkim. The
study is conducted in all four district of Sikkim i.e., South, East, West and North Sikkim, where we have
identified retailer and customer of respective areas and conducted our research. This study attempts to
understand and analyse the market of mushroom in Sikkim and put forward the holistic approach on how to set
business plan as a start up in Sikkim. Since this sector of business is still left untapped in Sikkim, it provides a
blooming area for successful business start-up in the state.
Keywords: Mushroom, Sikkim, Demand, Supply, Market, Business.
I. INTRODUCTION
Sikkim is one of the suitable places for mushroom cultivation, there is potential for mushroom industry to
thrive in the state and provide the opportunities, especially to the rural youth and women to generate extra
income for the farmers. The climatic conditions along with the availability of the cheap raw materials make
Sikkim one of the most potential places for the cultivation of different types of mushrooms. Sikkim being
famous for its tourisms industry creates high demand for mushroom in the hotel business, restaurant and
market. Mushroom proceeding unit is another big revenue in itself which in turn is dependent on round the
year cultivation. Three food-processing cluster centers are being set up in Sikkim in collaboration with the
ministry of micro, and medium enterprise. Apart from the facility to grow mushroom, the center will also have
processing and packaging facilities. The government has allocated Rs 2.34 crore for each three-cluster center
and the foundation for the first center was laid down on 29 jan2021. In the present hours of global pandemic
and food crisis mushroom industry would provide better option for employment and income generation not
only for the people but contributing to state and country. Mushroom business has a huge impact on market.
Mushroom, being really delicious and proteinaceous food, which are mainly known for its medicinal properties
and tastes. Mushroom Cultivation is not really tough now a days, with accessible knowledge that is available in
free in this era. Mushroom business can be started in a small scale with the subsidized investment with the
huge profit in return. Mushroom business in India is growing gradually as an alternative source of income for
many people. In last few years there is rapid increase in mushroom marketing as people are getting aware of
the mushroom and its health benefits. With the increase of demands there is a good price available in the
market for the mushroom and its value-added product. Hence mushroom business has enormous scope in
Sikkim the demand in the market is high but major supply of mushroom comes from neighboring State.
Peoples in Sikkim are fond of Mushroom Consumption and also take Mushroom as a staple food. The problem
which we highlighted is that there is no data as well as research is conducted on market analysis of Mushroom.
The study is to identify the varieties of Mushroom sold by the retailer also to find out the supplier /distributer
in which the Retailers are dependent. Through this study we will find out choices of Customer regarding
Mushroom varieties and to know the preference of Customer on Mushroom varieties.
II. METHODOLOGY
Research Design: Descriptive research design is applied to the study to conduct the pilot testing on mushroom
market analysis and for the establishment of business. In order to find the preference of people towards the
varieties of mushroom in Sikkim. Based on the responses of questionnaire by the individual regarding their
behaviors, intentions, attitudes, awareness, motivation and demographical and lifestyles characteristics.

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:03/March-2022 Impact Factor- 6.752 www.irjmets.com
Sampling size: The sample size is an important feature of any empirical study in which the goal is to make
inference about a population from a sample. The objective is to collect data and identify the preference of
Button, oyster and wild seasonal mushroom by the individual and price incentive, the preference of future
demand and choice of purchase. In these research 80 responses are collected from customer and 50 responses
are collected from the retailer.
Sample location: The sample location was chosen at the various districts of Sikkim. mostly in south and east
Sikkim, i.e., as per availability of Market and customers.
Sample type: In these part of study, qualititive data is collected and Snowball sampling method has been
applied.
Respondents:Target audience are the retalier and customers of various district of Sikkim. Based on the
purschase/selling habits of the audience.
Data type -: Primary data and Secondary data
Primary data : The primary data are collected from the retailers and customer. The retaliers who sells and the
customer who purchase the different mushroom Varities based on their preference of their consumption from
the different outlets and stores. And it is collected with the help of questionaire the respondent are just 130
members in total. For the effective study the individual are interviewed personally. The questionaire are in
open and close ended.
Secondary data :In this study the secondary data is collected with the help of journal, books, websites. The
research was conducted in Sikkim where there is effective market of Mushroom varities.
Instrument used for collection of data: The instruments used in the study for the collection of data are
Questionnaire which was on online basis, mobile phone interviews and physical interview.
Analytical Tools: The analytical tools used for collecting, summarizing, analyzing data for the research are the
software like MS-Excel required for the data analysis. Bar graph, pie charts are used for the effective
understanding of the study.
III. RESULTS AND FINDINGS
Retailer
The number of retailer’s respondent is higher from South Sikkim with 35% followed by East Sikkim with 29%
and the least no. is from North Sikkim.
Many of the retailer i.e. almost 87% prefers to sell more of Oyster mushroom in compare of other mushrooms
like Button, Seasonal, and other wild variety.
There is no particular season for peak selling of mushroom, all season is same with the availability of varities
that is grown in that particular season.
High demand of mushroom is seen in food catering service rather than medical service and export service and
others.
Major challenges faced by the retailers are in improper marketing channel, transportation and inadequate
suppliers which are the major concern to them.
There is good amount of profit in business, most of the retailer gets profit of 10-15% and above 20% as well, if
proper technology, knowledge, tools, equipments and business skills are used the profit is huge in this business.
Customer
It is observed that majority of respondent from customer consumes mushroom for its taste and nutrition value.
Many of the repondent i.e. 54% choose Button mushroom as their prefered variety.
Majority of respondent has tried mushroom’s value added product as well.
In value added product of mushroom many respondent has choosen instant mushroom soup as their satisfied
value added product.
Most customers buys mushroom from street vendor and commerical market and only few purchase directly
from farm. 58% of respondent buys from street vendor and 28% of respondent buys from commercial shop.

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[534]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:03/March-2022 Impact Factor- 6.752 www.irjmets.com
Promotion of mushroom is rarely done in area, so consumer directly buys mushroom when it is kept in display
by by wholeseller.
IV. CONCLUSION
After the painstaking research on ‘Market analysis of mushroom in Sikkim’ we were able to collect
overwhelming responses from retailers and consumers of Sikkim, through which we could identify problems in
the business and also see the huge opportunity of business in the state. As per research demand is greater than
supply of mushroom in state and this gap between supply and demand can only be bridge through proper
business plan development in Sikkim. Enhancing entrepreneurship culture and empowerment of the
productivity of rural community by providing the knowledge of business and skills to local through vocational
training supported by government can be one of the crucial step. Developing production technology especially
for spawn so that the supply of spawn to various farm can be from within the state which will not only reduce
the dependence of spawn from another state but increase the productivity as well. Storage, transportation,
proper marketing activity efficiency should be increased. There is a need of importance of developing brand so
as to build trust and relationship and communicate effectively. We can see in research that despite of having
many flaws and gaps and no marketing skills in current market scenario the return profit is still good, hence if
SWOT analysis gets followed properly then the profit can be doubled and the business can grow as well.
A SWOT analysis of mushroom production and its business has been done as follows in order to determine
opportunity of mushroom market and to make business plan development in Sikkim.
STRENGTH WEAKNESS
 Weather condition
 Popularity of mushroom for taste and  Lack of hardwork and serious work
nutritional and medicinal properties. commitment
 Demand is high  Less availability of labour and resources
 Low capital investment needed  Inadequate suppliers
 Market is still left untapped  Poor road infrastructure
 Competition is less  Poor marketing channel
 Availability of raw materials  Lack of knowledge about mushroom business
 Profit return is high management.
 Transportation cost
 No availability of production technology

OPPORTUNITIES THREATS
 Good market growth since the market is still
untapped in many areas
 Reduce dependence on import  Disease and pest attack that may affect on
 To create employment to people product quality and supply
 Marketing is still developing  Labour cost is high
 To contribute in healthy life style and living of Limited supply of organic pest and control products.
people.  Limited supply of spawn
 Expanding business product likewise making  Climate condition of hilly region
value addition product of mushroom
 Exporting opportunity
SWOT analysis has helped in profound understanding of internal and external issue of the business and market
condition in Sikkim. To set business plan as a start up company that deals with the establishment of mushroom
producing unit and trading the mushroom in Sikkim has to take the SWOT analysis into consideration as it
identifies the problem and opportunities which can be very useful for setting up business.
Therefore there is a huge potential growth of business in this mushroom and with proper knowledge and
information it can give profound profit to business and as well help in increasing the economy of the state.

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[535]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:03/March-2022 Impact Factor- 6.752 www.irjmets.com
V. REFERENCE
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[4] Yaoqui, Zhang, Waigeng, Yueqin Shen, Yaling Wang and Yu-Cheng Dai (China), the review was based on
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[5] Michael A.Gold, Mihaela M. Cernusca, And Larry D. Godesey (2008), study on competitive market
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[6] Mahanresh Shirur and N.S Shivalingegowde (2015), study was carried out to understand the marketing
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[7] J.D.Ferchak and J. Ceoucher, study on the prospects and problems in commercialization of small scale
mushroom production in South and South Asia.
[8] Singh Ram, Suresh Ram (2007), study on cost benefit analysis of mushroom cultivation which was
conducted on two districts of Haryana i.e. Sonipat and Gurgon.
[9] Kanad Das (2010), study on diversity and conservation of wild mushroom in Sikkim with special
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[10] Shivur Mahantesh, Shivalinge Gowda N.S, Chandre Gowda M.J & Rana Rajesh (2016), study on
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