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 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
- Get the PAN Card
- Registration of firm
- Shop Act License
- FSSAI License
- IEC Code
- Export License
- Fire and Safety
- 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
In case if you miss this: 5000 MT Cold Storage Project Report.
Land: Rs. 1,50,000
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.
How about this: Vermiwash Manufacturing Project Report.
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