Oyster Mushroom Farming process and revenue

Oyster Mushroom Farming process and revenue

Feb 01, 2025Jaaivat India

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

Process of growing Oyster Mushroom:

Substrate preparation:

Oyster mushrooms are cultured on wheat straw, sawdust, or cotton waste substrates. Pasteurization of the substrate kills off the deleterious micro-organisms.

Pasteurization:

  • Cold water PasteurizationSoak in a lime-water solution (high pH) for 12-24 hours.
  •          Steam Pasteurization – Heat the substrate with steam for 1-2 hours.

Raw Material Required for Cold water Pasteurization:

  • Wheat straw: 20 qtl

  • Spawn:            200 Kg

  • Wavsteen:       2 Kg

  • Calcium Carbonate: 20 Kg

  • Formalin: 24 Ltr

Inoculation – Adding Mushroom Spawn:

Once the water is strained, it’s time to add mushroom spawn. Follow these steps:

  • Mixing – Evenly mix the spawn into the substrate (usually 5-10% of the substrate weight).

  • Packing – Fill clean plastic bags, buckets, or containers with the inoculated substrate.
  • Aeration – If using plastic bags, poke small holes to allow air exchange.

Incubation – Let the Mycelium Grow

  • Temperature: 20-25°C

  • Humidity: 80-90%

  •             Darkness: Keep in a dark room.

In 10-14 days, mycelium will spread throughout the substrate. Once the bags turn fully white, you’re ready for the next stage.

Fruiting – Growing the Mushrooms

Change the conditions:

  •  Fresh Air – Increase ventilation to allow CO₂ to escape.
  • Humidity – Keep humidity above 85%.
  • Temperature – Maintain 15-25°C.

After 4-7 days, tiny mushroom pins will appear, and within a week, they will be ready for harvest!

Harvesting Your Mushrooms

Once the caps flatten out, gently twist and pull the mushrooms from the base. Harvest before the edges turn upward for the best texture and flavour.

Raw Material Costs:

  • Compost (Substrate): ₹13,000 (20 qtl Dry wheat straw, 20 x ₹650)
  • Mushroom Spawn: 10% of Dry weight, i.e.; 200 kg spawn required 200 x ₹100= ₹20,000
  • Wavsteen: 0.1% of dry weight, i.e.; 2 kg wavsteen required, 2 x ₹1000 = ₹2,000
  • Calcium Carbonate: 1% of dry weight, i.e.; 20 kg Calcium Carbonate required, 20 x ₹40 = ₹800
  • Formalin: 1.2% of dry weight, i.e.; 24 Ltr Formalin required, 24 x ₹25 = ₹600

Labour Costs:

  • Labour for Cultivation:

Total for 3 months (including preparation and harvesting): ₹20,000

Packaging Costs:

  • Packing Materials (PP): ₹3,000
  • Compost Bags: 10 kg x ₹160 = ₹1,600

Total Cost Calculation:

Now we can summarize the costs in a table format:

Cost Item

Amount (₹)

Initial Setup Costs

Shed Construction(or tables)

20,000

Equipment for temperature

 4,000

Miscellaneous Setup Costs

5,000

Raw Material Costs

Compost

13,000

Mushroom Spawn

20,000

Pesticide Required

3,400

Labor Costs(Optional)

Labor for Cultivation

20,000

Harvesting and Packing Costs

Packing Materials

4,600

Total Cost of Production

₹ 90,000

 

Revenue Generation from mushroom farm:

Production Estimates:

  • Yield per bag: Approximately 7 kg of mushrooms.
  • Total Bags: 200 bags.

Total Production Calculation:

Total Production= 200 bags × 7 kg yield = 1,400 kg in a season

Pricing:

  • Average market price for oyster mushrooms: ₹130 to ₹150 per kg.
  • For calculations, we will use an average selling price of ₹140 per kg.

Revenue Calculation:

Total Revenue = Total Production × Average Price

    = 1,400 kg × ₹140/kg

    = ₹1,96,000    

Net Profit:

Profit = Total Sale - Production Cost 

         =  1,96,000 – 90,000

         = ₹1,06,000

As per the calculation, Net profit is approx 55%.

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 70%.

 

Photographs taken from Jaaivat India’s seasonal mushroom farm 2021

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