Abstract:
Mushroom cultivation has emerged as a vital rural livelihood strategy in Sri Lanka
due to its low investment requirements, nutritional benefits, and growing consumer
demand. While value addition in mushroom production offers significant potential,
empirical evidence is limited on the specific constraints and enabling factors
influencing adoption of value-added practices at the grassroots level. The objective
of this study is to assess both the constraints and the opportunities for value addition
in the mushroom industry within a model village setting. This quantitative, cross sectional study was conducted among 100 mushroom producers selected from
Jandura, a model mushroom-producing village in the Angunukolapelessa DS
Division of Hambantota District. A structured questionnaire comprising close-ended
items was used to collect data and data were analyzed using descriptive statistics and
the Relative Importance Index (RII). Although purposive sampling was employed
due to logistical feasibility, the findings provide relevant preliminary insights into
smallholder-level value addition dynamics. The results revealed that although nearly
all producers were aware of value-added mushroom products, only 10% actively
engaged in their production. Key constraints identified included financial limitations
(RII = 0.910), lack of processing equipment (RII = 0.785), inadequate infrastructure
(RII = 0.772), and regulatory challenges such as certification and food safety
compliance (RII = 0.721). Despite these challenges, producers acknowledged strong
benefits such as shelf-life extension, surplus utilization, and employment generation
(each RII = 0.998), underlining high entrepreneurial potential. Demographically, 83%
of producers were women, with most aged 31–45 years and having secondary
education, indicating a promising entrepreneurial base. Strategic enablers for scaling
value-added production included skill development programmes (RII = 0.951),
improved technology access (RII = 0.820), and supportive government policies (RII
= 0.800). The study recommends management interventions such as cooperative-based processing models, targeted financial support, capacity-building initiatives, and
streamlined regulatory processes.
