In Himachal Pradesh, the commercial production of mushroom started during late sixties on an experimental basis by Dr.E.F.K.Mantel, an Agricultural Scientist under FAO Programme. The College of Agriculture, Solan took the lead and provided initial research facilities. Sri Amarinder Singh was the pioneer grower to venture in the field. The raw materials used were wheat straw, spent brewer's grain from Solan distillery, wheat bran, super phosphate, murate of potash and urea. The spawn was provided by agriculture college, Solan, and spent mushroom compost, sand, saw dust and loamy soil formed the casings. Around early seventies some growers of Chail and Kasauli produced few hundred kgs. of mushroom per day which was canned by TEGS Mushroom.

Himachal Pradesh emerged as a major state of mushroom cultivation where small growers, co-operative growers societies, big farmers and some corporate organisations are engaged in production. Since, it is an ideal state for development of mushroom industry, several commercial units in organised/corporate sector have come up in Himachal Pradesh. The major growing districts are Solan, Shimla, Kangra, Mandi, Kullu and Sirmaur. Due to improved quality of compost, better market facilities, small and medium sized units have been established around Shimla and Solan. However, some limiting factors such as inadequate financial facilities, high cost of transportation in hilly areas, inadequate post harvest infrastructure, rising cost of inputs are coming in way of expected progress.