How to Start Mushroom business step by step and generate monthly income up to 5 Lakh

mushroom business

Mushroom business is one of the highly profitable businesses for an entrepreneur like you who wants to earn more in less time. It is a very profitable business idea that has been growing traditionally but can be turned into a revenue-generating business. It’s a High Dominating marketplace for the Indian as well as for the foreigner. Mushroom is important not only from a nutritional and medicinal point of view but for export also.

1. Mushroom Business plan

Every Mushroom business needs the best planning before establishing it. if you want to earn from this business, you need to focus on Mushroom cultivation techniques, sell mushroom in the nearby area, Investment required for growing mushroom, Mushroom farming profit margin, Materials required for growing mushroom,  Mushroom farming process.

Along with this, you should know How to maintain humidity in mushroom cultivation, and how you’ll get Government subsidies for mushroom cultivation. the stronger the business plan would be, the fewer chances of failure.

2. Project Cost

The project cost of the mushroom business depends on many factors such as-

Cost of construction for room = Rs. 2,00,000

Scrab Wooden Shelves =  Rs. 20,000

Miscellaneous Cost=  Rs. 10,000

So the Total Cost= Rs. 2,30, 000

Not only that, The total Recurring Costs in Mushroom Farming: Rs. 40,000

and The Total Recurring Expenses For 2 crops (50,000* 2)=1,00, 000

the above figure is the approximate and Average cost that you’ll invest to start your Mushroom business.

3. Benefits of the mushroom 

mushroom business plan

As everyone wants to consume mushroom-like food items because of their significant benefits. here is the series of benefits of mushroom:-

  • There are lots of protein and other essential nutrients present in it like Vitamin D.
  • Mushrooms help in building a strong immune system
  • Mushrooms are high in nutritional value & hence helps in the prevention of heart diseases. 
  • Mushrooms are also helpful in preventing some the cancers like Breast cancer prevention. 
  • Mushrooms are also helpful in Weight Loss
  • Mushrooms are rich in protein, vitamins, & fibers. So, mushrooms are also beneficial to the diabetic patients
  • Mushrooms also contain vitamins B2 & B3, increasing metabolism.
  • As mushrooms are rich in fiber & carbohydrates, prevent stomach disease.
  • Mushrooms are also a good source of folic acid that found only in non-veg & is helpful in increasing the hemoglobin level in the body.

4. Environment Condition to grow the mushrooms

growing mushroom business

As the mushroom grows in specific temperature and environmental condition, so they will grow would turn into eatable items. here is the list of the suitable conditions to grow mushroom:-

  • Mushroom Business requires little space or land and hence it is of great importance for landless and marginal landholders. 
  • It grows independent of sunlight, feeds on organic matter, and does not require fertile soil.
  • In addition to the floor, air space is also utilized resulting in higher productivity.
  • mushrooms are grown during winters as it requires lower temperature when being grown.
  • It can also be cultivated in a room but you have to make sure that there is moisture present over that place. You can also buy carbonic and carbonic chemicals and nitrogen nutrients for its better growth.
  • For a well-cultivated mushroom crop, 20-30 degrees temperature is the best fit.
  • The level of humidity should be up to 70 degrees and you should also keep a check on room temperature. 

5. Types of Mushroom 

Some types of Mushrooms produce up to 1,000 kg of mushroom every three months and you can sell it at Rs 350/kg, with the profit being about Rs 230/kg. So it depends on which type of mushroom you want to grow for the maximum profits. Here is the list of mushrooms that you can choose to grow. 

  1. Button Mushroom-Most popular and also known as Milky mushroom 
  2. Dhingri (Oyster) Mushroom 
  3. Paddy Straw Mushroom
  4. Especially mushroom

6. Materials required for Growing the Mushroom 

Mushroom is important not only from a nutritional and medicinal point of view but for export also. Mushroom production has tremendous potential as an income-generating activity. It grows with a specific condition like low sunlight, feeds on organic matter, and does not require fertile soil.

In addition to the floor, air space is also utilized resulting in higher productivity. some materials required to grow the mushrooms as Wooden Mould of 45x30x15 cms size each having no top or bottom but having a separate wooden cover. here is the list of other materials.

  1. Straw and spawn- the straw that can be chopped up into little pieces. 
  2. Plastic Sheet -pack plastic bags with the straw and spawn
  3. Wooden mold
  4. Hand Chopper or Chaff cutter for cutting the straw. 
  5. Drum for boiling straw (minimum two). 
  6. Jute rope, coconut rope, or plastic ropes 
  7. Gunny bags
  8. Sprayer 
  9. Grass or bushels of wheat is also required for it.

7. Investment required for growing mushroom

The investment level varies with your budget and level of business. Either you want to grow on a small scale or just want to build a large business model

  • You will be required to spend on the land and take care of the mushrooms. 
  • You will also have to spend on pesticides. 
  • Seeds purchasing 
  • You should also buy pesticides for safety purposes.
  • You will have to spend Rs 10000 to Rs 50000 on a small scale.
  • For large scale Rs 1, 00,000 TO Rs 10, 00,000 can be your investment.

8. A place to buy mushroom seeds in India

  • you can obtain the seeds from government farmer/agricultural centers or available in your Blocks, District office. 
  • Online-Search on Amazon and other platforms to Purchase high-quality seeds. 

9. Mushroom seeds price

mushroom seeds

1 kg seeds will cost you Rs 95 (Minimum) to Rs 120 (Maximum) which changes through quality and brand. So you will have to decide beforehand what mushroom you want to grow. Some high-quality mushroom prices go to Rs 200. You can purchase at a very low cost from the local market.

10. How to Apply for loan for mushroom business

Nowadays government introduced a lot of schemes and giving loans to entrepreneurs and farmers to help growing businesses. here are some methods to guide you on how you can get loans and investments to grow your mushroom business.

  • The government has also started loan facilities for growing mushrooms. 
  • You can get the information regarding this on the website https://www.nabard.org 
  • You will have to make a business proposal and present it at a government office. 
  • Documents Required- Present your PAN card, Aadhar card and residence proof, and bank account details. 
  • You will get a subsidy of 20 % to 40% on each bag of mushroom. 

11. How to sell mushrooms in India and the Marketing strategy

Mushrooms are demanded at various places. So there are many places available to sell it. here are some examples 

  • Various hotels and medicine manufacturing companies are also after it.
  • You can be delivered to a Chinese food restaurant. 
  • You can also export to various countries.  

12. Mushroom business profit 

With advanced technology, its growth rate is 12.9% all over the world. If you start growing it in a 100 square feet area then you can earn a profit of Rs 1 lakh to Rs 5 lakh per year.

The global mushroom market was valued at 12.74 million tons (MT) in 2018 and is projected to reach 20.84 million tons (MT) by 2026, exhibiting a CAGR of 6.41% in the forecast period. 

13. Profit calculation of the Mushroom Business

Here is all about the Mushroom Farming Profits in India. If you maintain properly, you will get good profits. Here are the details of the Commercial Mushroom Farming Profit Margins in India:

Yield per 1.5 Square Foot. 20 Kg to 25 kg.

Yield per 250 square Foot. 2,500 kg.

Cost of Button Mushroom per KG. Rs. 150.

Cost of Button Mushroom for 2,500 kgs @ Rs. 150. Rs. 3,75,000.

Total Recurring Cost of Mushroom Farming Rs. 1,60,000

The Net Profit of Mushroom Farming per year is Rs. 2,15,000

if you would expand the land and the kgs of Mushoorm, Your earning might be close to 10 Lakhs.

14. Mushroom cultivation training

The government is helping entrepreneurs by providing them with subsidies. Apart from the subsidy, the government is also providing free of cost training for mushroom cultivation at various training centers which teaches you how to cultivate mushrooms. You can take training and plan out everything and quick start. 

15. Read And learn

You need to learn before Earn. Here is the collection of books that you can read and know how to start the mushroom business and earn up to 10 Lakhs in a year.

Mushroom Business Book: Book 2 (Read More)

Mushroom Business Book: Book 3 (Read More)

Mushroom Business Book: Book 1 (Read More)

So, the Mushroom business is one of the most profitable agribusinesses that you can start with low investment and less space. Mushroom cultivation in India is growing gradually as an alternative source of income for many people. You can even export to other countries. This kind of business ideas we put on our website so it would be helpful for you to grow your business. Stay tuned with our articles and leave a comment if you liked this business idea and you are looking to another idea of agriculture business then Start Goat Farming Business and generate monthly income up to 3 lakh rupees.

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Written by
Rajendra Kumar

I love creating content that helps people. Whether it's teaching them how to code, helping them find the perfect digital marketing solution, or teaching them how to make money online, I'm here to help.

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Written by Rajendra Kumar
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