Mushroom farming Cost and profit

Initial Setup Costs:

• Bamboo Room Construction:

             Required Room Size: 16 x 40 sqft i.e.; 640 sqft  

             Approx. ₹20,000

Bamboo Room for mushroom cultivation:

• Equipment:

• Watering Machine: ₹2,000
• Humidity & Room Temperature: ₹2,000
• Miscellaneous Setup Costs: ₹5,000

Raw Material Costs:

• Compost (Substrate): ₹45,000 ( 25 qtl Dry wheat converted 2.5 to 3 times 75 qtl compost, i.e.; ₹6 x 7500 kg compost )
• Mushroom Spawn: 1% of compost weight, i.e.; 75 kg spawn required 75 x ₹90= ₹6,750
• Casing Soil: Appx 5 kg soil is used in each bag, i.e.; 5 x 750 bags= 3750 kg, 1kg soil costs appx ₹1. So, 1 x 3750kg = ₹3,750

Labour Costs:

• Labour for Cultivation:

• Total for 6 months (including preparation and harvesting): ₹30,000

Packaging Costs:

• Packing Materials (PP): ₹2,000

Total Cost Calculation:

Now we can summarize the costs in a table format:

Revenue Generation from mushroom farm:

Production Estimates:

• Yield per bag: Approximately 2 kg of mushrooms.
• Total Bags: 750 bags.

Total Production Calculation:

Total Production=750 bags × 1.8/2 kg yield = 1500 kg in a season

Pricing:

• Average market price for button mushrooms: ₹100 to ₹120 per kg.
• For calculations, we will use an average selling price of ₹110 per kg.

Revenue Calculation:

Total Revenue = Total Production × Average Price

    =1500 kg × ₹110/kg

    =₹1,65,000

Net Profit:

Profit = Total Sale - Production Cost 

         =  1,65,000 – 1,16,600

         = ₹48,400

As per the calculation, Net profit is approx 30%.

The expense value are taken is maximum price which may vary with the location and equipment’s required.

The profit margin will get increase next year as cost of constructing bamboo room and equipment’s will be same. It can increase by 15%, so the net profit next year will be approx 45%.

Photographs taken from Jaaivat India’s seasonal mushroom farm 2021

Construction of bamboo room

Racks setup

Packaging and weight of fresh mushroom.