Highly profitable business ideas, Mushroom Business

Start Mushroom Business and generate Income up to 5 Lakh per month

Mushroom business is one of the highly profitable business idea 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.

How to start Mushroom farming business step by step

if you want to earn from this business, you need to focus on Mushroom cultivation techniques, Mushroom cultivation technology, sell mushroom in the nearby area, Investment required for growing mushroom, Mushroom farming profit margin, Materials required for growing mushroom,  Mushroom farming process.

Step 1: Prepare Mushroom business Plan first

mushroom business, Highly profitable business ideas, Mushroom farming business

Mushroom farming business needs great planning before establishing it, because you have to cover all the aspects in paper first such as financial planning, marketing strategy, budget etc. Here is the lists of things you can include in your planning:-

    • Raw Materials: where to buy mushroom spawn
    • Fertilizers & pesticides
    • Land: You need a plenty of land space with indoors and outdoors
    • Labour: You need to hire a team for manage the mushroom farm
    • machinery & equipment: required machinery and equipment list preparation with price
    • customers: where to sell your mushrooms
    • Profit calculation
    • Required licenses and certificates

How Much Does it Cost to Start Mushroom Farm

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.

How much investment is required to start mushroom business

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.

How to get loan for mushroom business

if you have not enough money to invest in mushroom farming business then you can apply for business loan. 

1. Government Loan schemes

Nowadays government introduced a lot of schemes and giving loans to entrepreneurs and farmers to help growing businesses. You will get a subsidy of 20 % to 40% on each bag of mushroom. Here is the government schemes where you can apply and get loan for mushroom farming business.

    • Mudra loan scheme
    • startup india scheme
    • standup india scheme

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. 

2. Private Players on Business Loans

Private banks and NBFCs are also interested in providing business loans for mushroom business. here is the list who supporting farming business and you can apply these banks to get Mushroom business loan:-

    • SBI Loans
    • ICICI Loans
    • Bank of baroda Loans

Step 2: Learn Everything about Mushroom farming Business

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, Highly profitable business ideas, Mushroom farming business

Mushroom farming related Books:-

    1. Mushroom Business Book: Book 2 (Read More)

    2. Mushroom Business Book: Book 3 (Read More)

    3. Mushroom Business Book: Book 1 (Read More)

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 centres which teaches you how to cultivate mushrooms. You can take training and plan out everything and quick start. 


Step 3. Business name Registration & Certificates

Mushroom business required some government registrations, Licenses & Certificates before selling to market. so you can step by step

Business Name

Keep your business name unique, memorable & relatable with your business name. if brain is not storming then you can use business name generators for find good name for your business.     

Firm Registration

According to your business size you can select the business entity type such as if you are single person who want to start mushroom then you need to register sole proprietorship business registration otherwise you can register Limited lability partnership or private limited company.   

Documents required for firm registration:-

    • PAN Card
    • Aadhar Card
    • Address proof(electricity bill, landline bill)

Required licenses and certificates

Here is the list of required certificates & licenses for mushroom farming business

You need to maintain the Business financials and generate invoice to your venders. so you can checkout online receipt template as example. 

Also Read: Start Goat Farming Business and generate up to 2 Lakh per Month

Step 4: Decide How your Mushroom farm will be Designed

mushroom business, Highly profitable business ideas, Mushroom farming business

    • Land requirements:- Minimum land requirement for the mushroom farming business is 6 feet wide & 6 feet high with as long as possible. 
    • Design:- Concrete floors outdoors that are covered by roofing. 
    • Ventilation:- Indoor room is also ventilated for control humidity and temperature
    • Zoned:- The compost is packed about 6 feet high on trays and these trays are movable to ventilated room. 
    • Bed or shelf:- one room is required to use for all stages.
    • bulk system 

Step 5: Decide Which mushrooms is best for business

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

Step 6: choose your cultivation method

after the selection of mushroom you need to select a perfect cultivation method and it’s modern mushroom cultivation technology for higher production in less time and money. 

Step 7: Acquire the Materials & Equipment

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.

A place to buy mushroom seeds in India

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

Mushroom seeds price

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.

Machinery & equipment required for growing the mushroom

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.

Also Read: Start beekeeping business in 7 steps and generate 5 lakh monthly income 

Step 8: Hire Team for Mushroom Farming

Mushroom farming is automated farm but farm manager is important to hire because all the automated system need to constantly monitored like temperature control, moisture control.

Step 9: Mushroom cultivation process

you need to constantly monitor in every stage of mushroom farming such as:

    • Buy Mushroom Spawn

    • Create & Prepare Substrate

    • Incubate the mushrooms

    • Fruiting process

    • Harvesting

Step 10: Market your Farm & Sell your product

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.  

Step 11. Make Your Mushroom Business online

if you are planning to sell mushroom all over the India then you need to make your mushroom business online. you can build brand for sell online mushrooms that will give you constant orders as well as you can get buyers from all over the world. 

Book domain registration

First of all book a domain name with your business name in cheapest price. e.g. if your business name is xyz farm then you need to register domain name like xyzfarm.com. 

Get 40% off on Domain name Registration

Build website

Build a website where you can list your mushrooms with complete details with online payment option. you can hire any web development agency or freelancer to build website in cheapest price. also our team is ready to build your online mushroom selling website.

contact us for online mushroom selling website

Collect Online payment 

Today every shopkeeper is becoming digital & you need to become also digital so you can collect your payments using online payment gateway as well as UPI payment. So here is the List of best Payment gateways & UPI Payment Apps:

a) Payment Gateways

    • Razorpay payment gateway
    • Cashfree payment gateway
    • Paytm Payment Gateway

b) UPI Payment Options

    • Paytm business
    • Bharatpe
    • Phonepe

Is mushroom business profitable in India?

Yes mushroom business is profitable in India, you can generate yearly net profit 2 lakh rupees per year in 25 kg yield per 1.5 square foot .

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. 

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.

So 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. 2500 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.


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.

General FAQs

  1. 1. Why Mushroom business is important ?

    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. 
    Mushroom farming business is growing in world wide due to it’s highly market demand. In 2020 the Mushroom business valued at about $ 46 Billion and the Compound annual growth is projected at 9.8 from 2021- 2030.
    Europe is the World’s Biggest consumer of Mushrooms and who is really only on imports & USA is the Second Largest producer of the Mushrooms for Consumption and exports.
    Mushroom business has huge potential in India because climatic condition for mushroom farming business is great in india as well as big market for consumption.

  1. 2. Suitable Environment Condition to grow the mushrooms

    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. 

  1. 3. Benefits of the mushroom

    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.

  2. 4. Mushroom business profit margin

    you will get Mushroom business profit margin between 30% to 60% in every condition.

  3. 5. Who is the Father of Mushroom cultivation in India

    Mota Ram Sharma is the known as the father of mushroom cultivation in India

How useful was this post?

Click on a star to rate it!

Average rating 4.7 / 5. Vote count: 64

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

7 thoughts on “Start Mushroom Business and generate Income up to 5 Lakh per month”

  1. I love this blog post and also you understand you’re.
    Writing a blog may be quite mind-boggling for a lot of folks due to the fact that there is so a lot entailed yet its like just about
    anything else.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top