Mushroom cultivation is emerging as a promising new frontier for Bangladesh鈥檚 agricultural economy, offering diversification, rural employment, and export potential.
With a short growth cycle, low capital requirements, and adaptability to local conditions, mushrooms are gaining traction among both rural farmers and urban entrepreneurs, when traditional farming struggles with climate change, shrinking farmland and rising input costs.
Officials project that the industry can become one of the country鈥檚 fastest-growing and most sustainable agricultural sectors although there are challenges in its preservation, marketing and transport.
According to the National Mushroom Development Institute at Savar, Bangladesh produces around 40,000 tonnes of mushrooms worth around Tk 800 crore annually.
The institute estimates that production could triple with proper policy and technological support, employing up to half a million people in the coming years.
鈥楤angladesh has all the natural advantages: a favourable climate, abundant agricultural waste and low investment needs,鈥� said Nishat Salsabil, a mushroom development officer at the NMDI.
Driven by global demand for healthy, protein-rich food, mushroom farming offers strong environmental benefits.
Salsabil said that one kilogram of mushrooms could be produced from just one kilogram of straw, describing the process as a 鈥榗ircular economy鈥� model that recycles agricultural residues like rice husk, sawdust, and sugarcane bagasse into productive inputs.
The NMDI has built a strong research base, adapting 162 foreign strains and 140 local forest varieties.
Commonly cultivated types include seven strains of oyster mushrooms, as well as milky, straw, button, cloud ear, reishi, and shiitake.
More than 9,000 farmers have completed in-person training, and 1,400 more have taken online courses in recent years.
鈥榃e are developing new varieties and modernising cultivation and conservation techniques,鈥� said Md Ferdous Ahmed, the institute鈥檚 deputy director.
However, Bangladesh still lags behind in producing high-value varieties such as button mushrooms on an industrial scale, which require controlled environments and cooler conditions.
As mushroom farming is affordable in general, household growers can start with as little as Tk 500 for 30 to 50 mediums, while small commercial setups require Tk 50,000 to Tk 70,000 for sheds, steaming, and spawn facilities.
The Department of Agricultural Extension sells pure culture in test tubes at Tk 35, mother culture in sawdust at Tk 25, and spawn packets at Tk 20. The production cycle lasts about 40 days, with per-unit substrate costs of Tk 9鈥�10 and mycelium around Tk 1鈥�1.3.
The government has set prices of fresh oyster mushrooms at Tk 200 per kilogram, dried at Tk 1,200, oyster powder at Tk 1,300, dried reishi at Tk 2,800, reishi powder at Tk 3,000, and fresh button mushrooms at Tk 700.
Abdur Sabur Khan, owner of Khan Mushroom Farm in Savar, exemplifies the sector鈥檚 earning potential as his annual income margin reaches Tk 5 lakh from three sheds, each containing 500 spawn bags.
Sabur has also diversified his income by developing value-added products like pickles, dried snacks, and mushroom powder for niche urban markets.
Hamida Banu, once a tea vendor, shifted to mushroom farming after training at the Savar centre.
With an investment of just Tk 1,300, she produced 20 kilograms in three months, earning Tk 6,000. 鈥楽ince I grew them at home, I had no extra cost other than cylinders and water,鈥� she said.
Private innovation is spreading across the country.
In Magura Sadar, physically challenged farmer Babul Akhter has built a network of farms, labs, and visitor facilities since 2007.
Employing 400 people, including 50 disadvantaged women, his operation produces 10 tonnes monthly and earns Tk 7 lakh in monthly profit.
The growers, referring to its high transport costs and rapid spoilage, said that the farming was not profitable if it was not produced on a large scale.
Farmers point to inadequate post-harvest handling, a lack of cold storage, and syndicate-controlled marketing as major barriers.
In Savar鈥檚 Jamsing area, small producer Ariful Mridha said he had to shut down operations due to market monopolies.
Professor Nuhu Alam of Jahangirnagar University鈥檚 botany department called current practices 鈥榩rimitive鈥� and urged large-scale investment in cold-chain logistics, packaging, and processing.
He emphasised the need for women-focused training and digital marketing platforms to connect farmers directly with buyers.
鈥楴ew global varieties have higher nutritional value, but we鈥檙e not yet growing them. That鈥檚 why high-end restaurants prefer imports,鈥� he added.
With improved infrastructure, technology, and inclusive policy support, Nuhu Alam believes mushroom farming could evolve from a cottage industry into a high-value, export-oriented sector.
