Assessing the relationship between mushroom production and market participation on household welfare in Eastern India

Purpose The purpose of this study is to assess the relationship between mushroom production and market participation on household consumption expenditure and annual income. Moreover, this study identifies determinants that play a crucial role in mushroom adoption and market participation. The study also estimates the effectiveness of various mushroom marketing channels and determines the factors influencing mushroom growers' choice of marketing channels in Eastern India. Design/methodology/approach This research employed the propensity score matching method to assess the relationship between mushroom adoption and commercialization on per capita consumption and income of the mushroom farmers. Moreover, the study employed Acharya and Aggarwal's composite index method to evaluate the market efficiency of the various marketing channels for mushrooms. Furthermore, a multinomial logit model was employed to identify the constraints on marketing channel selection. Findings The results indicate that mushroom adoption and market participation have a positive influence on per capita consumption expenditure and annual income. Additionally, mushroom farming increases women's participation in livelihood activities and per capita daily protein uptake. The outcomes indicate that the producers directly sell to consumers through the local market and visit customer places, which are efficient marketing channels. Nevertheless, mushroom farmers primarily sell their produce to farmgate collectors due to a lack of storage facilities, market information, vehicle ownership, training facilities and education. Marketplace distance, farm size, and off-farm income are negatively associated with farmers' mushroom commercialization through the local marketplace. Research limitations/implications This study utilizes primary data to focus solely on farmers' perspectives, assessing the influence of market participation, the effectiveness of marketing channels and the factors influencing the selection of these channels. Future research may incorporate the perspectives of the other stakeholders. Originality/value Previous studies have limited their focus to exploring how the adoption of mushrooms and market engagement influence household welfare.