Mushroom Farming Project Report, Cost, and Profit

Introduction to Mushroom Farming Project Report, Business Plan, Cost and Profit Analysis: When one is willing to start the mushroom farming business, then it is the proper decision to have the perfect business plan for starting a mushroom farming business. Before that, one must get proper awareness about the significant aspects of mushroom farming. You also must acquire enough area to cultivate mushrooms with ease and hence you may begin the mushroom farming business after acquiring both aspects.

Mushroom Farming Project Report, Business Plan, Cost and Profit Analysis

Mushroom Farming Business Plan — **Mushroom Farming** **Business Plan** (Image source: pixabay)

Mushroom cultivation is a money-spinning business in India for young entrepreneurs who desire to start the business.

Different types of Mushrooms

In India, there are four varieties of edible mushroom that can be grown –

Button mushroom
Portobello mushroom
Oyster (Dhingri) mushroom
Paddy straw mushroom

The button mushrooms are highly popular one which many prefer to have them in food recipes and thus it is grown for the high demand in the market.

Business plan for Mushroom Farming

To initiate a mushroom farming business in India, it is necessary to have a perfect business plan, which will generally include unit size and is dependent on the complete budget.

Market potential for Mushroom Farming Business
Implementation schedule of Mushroom Farming Business
Basis and Presumptions of Mushroom Farming Business
List of approvals required for Mushroom Farming Business
Area required for Mushroom Farming Business Unit
Raw materials required Mushroom Farming Business
List of machinery required for Mushroom Farming Business
Step-by-step procedure for Mushroom cultivation procedure
Project economics of Mushroom Farming Business in India
Profitability in Mushroom Farming Business

Basis and Presumptions of Mushroom Farming Business

The Mushroom Farming project profile relies on the following assessments:

Working hours/shift: 8 hrs.
No. of shift/day:1
Working days: 300
Labor expenses: According to State Government’s Minimum Wages Act.
Rate of interest: 15% per annum
Costs of machinery and equipment: Taken based on A particular dealer
Value of raw material: As per local market Packing material/others rate (on wholesale rate)
Land: owned
Building Construction charge: About Rs. 2000 per sq. ft.
Break-even point will be estimated on a full capacity utilization basis
Pay-back time is 5 – 7 years

Implementation schedule of Mushroom Farming Business

Market analysis and demand, applying for loan 0 – 1 month
Preparation of business plan 1 – 2 months
Financial support or investment 2– 4 months
Selection of location and establishment of unit 3 – 4 months
Power and water connection facility: 4 – 5 months
Building construction and shed development 5 – 6 months
Machinery and equipment purchase 6 – 7 months
Procuring raw materials and recruiting of manpower 8 – 9 months
Trial operations 10th month

List of approvals and permits required to start Mushroom Farming Business

The next step to start Mushroom Farming Business in India is acquiring the following list of licenses, permissions and registrations –

Register your business identity
MSME registration
GST registration
ROC
Get the PAN Card
Registration of firm
Shop Act License
FSSAI License
IEC Code
Export License
Fire and Safety
ESI
PF
No Objection Certificate from pollution board
Trade license from local municipal authority

Market potential of Mushrooms

There is a huge demand for mushrooms in the market because of their protein value and people like to consume mushrooms in food recipes. In the market, there are various types of mushrooms but there is great demand for button mushrooms because they are so famous popular and their farming is practiced extensively because of their huge market potential in our country.

Area required for starting Mushroom Farming Business

Around 500 sq. ft space is sufficient to grow almost 4,700 kilograms of mushrooms. There should be proper machinery to regulate humidity, temperature, and light.

Raw materials required for starting Mushroom Farming Business

You have to prepare a spawned bed for growing any kind of mushrooms. Now spawn can be prepared by you or you may purchase from the store and inoculate spawns. Maintaining a clean atmosphere in the system is a vital element for a successful mushroom business as many aspects can contaminate the mushrooms and affect the farm. It is recommended to use pasteurized straw as the substrate. Next, one has to purchase spores of good quality for mushroom cultivation at a small scale if planning to start at home.

Step-by-step procedure for Mushroom cultivation procedure

Mushroom cultivation is a commercial-scale mushroom growing. In this article, we will describe oyster mushroom farming in a step-wise manner.

Step 1: Spawn and substrate

One must get a pasteurized spawn to grow the mushroom. But cultivating your spawn is not expensive and in the long run but initial expenses are high so purchasing ready to inoculate spawn is the perfect choice for the starters. It is also necessary to get a substrate like straw and wood chips that help to retains moisture content. Straw is a common and novel element that must be cut into pieces to use as a substrate.

Step 2: Preparation of the substrate

When the straw is cut too short pieces of about 2 to 3 inches have to be wet and next are left to boil in boiling water. Around 30 mins of boiling are enough and next the straw will be removed and left for cooling.

Step 3: Pack the plastic bags

Place the chopped and boiled straw in plastic bags and carefully sprinkle the spawn on top with no gaps. Repeat this process until the complete bag gets filled, cover the top and poke holes in the bag.

Step 4: Incubation

Maintain the cultivation area at 25 °C, and keep them filled bags on the shelving units, and take the precaution to inhibit any natural light coming into the harvesting room. A red darkroom light is appropriate, while you examine your bags. When a small pinhead mushroom is identified near the air hole of the bag then the bags could be moved to the next stage of mushroom farming.

Step 5: Fruiting

At this stage of the fruiting room, one must maintain a high level of humidity of around 80% – 90%; the temperature must be controlled from 20°C to 25 °C. The mushroom fruiting requires natural light for a minimum of12 hours daily to stock the mycelium which will drive into fruiting.

Next, change the bags to a cool place for about 24 hours and bring them back to the fruiting room again, next remove the bag that hinders the mushroom growth and allows it to grow freely.

Step 6: Harvesting of the mushrooms

Just before your mushroom caps become completely uncurled, they will be ready to harvest.

Mushroom Farming Project Report/ Economics of Mushroom Farming Business

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Land: Rs. 1,50,000

Building Structure

Straw Storage Shade: Rs. 75,000

Straw soaking room: Rs. 90,000

Sterilization system room: Rs. 90,000

Bed fillings room: Rs. 1,05,000

Incubation room: Rs. 1,75,000

Growings/ Harvesting room: Rs. 35,000

Mushroom Processing Unit: Rs. 60,000

Mushroom storage room: Rs. 60,000

Office /Staffroom/ Rest room: Rs. 90,000

Spawn Lab: Rs. 1,75,000

Training Centre room: Rs. 90,000

Plan Fees: Rs. 28,800

Sub Total Rs. 13,88,800.

Plant & Machinery

Sterilization system: Rs. 1,90,000

Electric Tray dryer: Rs. 75,000

Racks: Rs. 1,75,000

Humidity maintaining and controlling: Rs. 75,000

Ventilation system: Rs. 20,000

Temperature maintaining and controlling system: Rs. 30,000

Thermometers & Hydrometers: Rs. 7,000

Shaw chopping machine: Rs. 25,000

Water Spraying system: Rs. 5,000

Spawn Lab Equipments: Rs. 5,00,000

Sealine Machines: Rs. 7,000

Other Miscellaneous Equipments: Rs. 5,000

Subtotal: Rs. 1,11,40,000

Miscellaneous fixed assets: Rs. 35,000

Total cost of the project: Rs. 30,18,000.

Profitability in Mushroom Farming

Net Profit: Rs. 3,47,334.

Break Even Point (Kgs)
Fixed Cost/(Revenue – Variable Cost) = 817.

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Profit in Mushroom Farming Business (Pic credit: pixabay)