Mushroom Farming Business: How to Earn ₹1 Lakh Per Month
Mushroom farming is a fast-growing agribusiness that offers high profits with low investment. With the rising demand for mushrooms in India for food, medicinal, and export purposes, entrepreneurs can make a steady income of ₹1 lakh or more per month. In this article, we will explore the science behind mushroom farming, step-by-step cultivation methods, investment details, and profit potential to help you build a successful mushroom farming business.
Image credit Sandhu Agro farm youtube channel
Why Start a Mushroom Farming Business?
✔ High Demand: Mushrooms are widely consumed in India and exported globally.
✔ Low Investment: Requires minimal space and setup cost.
✔ Fast Growth: Mushrooms grow in 3-4 weeks, ensuring quick returns.
✔ High Profit Margins: Low production cost with high market price.
✔ Sustainable & Eco-Friendly: Uses agricultural waste as a growing medium.
Types of Mushrooms for Commercial Farming
Different mushrooms grow under different conditions. The most profitable ones include:
- Button Mushroom (Agaricus bisporus) – Most popular, needs controlled environment.
- Oyster Mushroom (Pleurotus spp.) – Grows on straw, easy to cultivate, and fast-growing.
- Shiitake Mushroom (Lentinula edodes) – High medicinal value, great for export.
- Milky Mushroom (Calocybe indica) – Ideal for Indian weather conditions.
For beginners, oyster mushrooms are the best as they grow easily with minimal investment.
Step-by-Step Guide to Mushroom Farming
1. Setting Up a Mushroom Farm
- Space Requirement: 500-1000 sq. ft. (a room, shed, or warehouse).
- Temperature Control: Maintain 15-30°C depending on the mushroom type.
- Humidity Control: Keep it between 80-90% using sprinklers or foggers.
- Ventilation: Fresh air is required for proper growth.
- Lighting: Indirect sunlight or artificial lighting (for some species).
2. Preparing the Growing Medium (Substrate)
- Use wheat straw, sawdust, paddy straw, or sugarcane bagasse as a substrate.
- Sterilize/Pasteurize the substrate to kill harmful bacteria and fungi.
- Mix mushroom spawn (mycelium) into the prepared substrate.
3. Incubation (Spawn Running)
- Place the inoculated substrate in plastic bags, trays, or shelves.
- Maintain high humidity and darkness for 12-20 days until mycelium spreads.
4. Fruiting & Harvesting
- Reduce temperature and increase humidity to trigger mushroom growth.
- Within 20-30 days, mushrooms will be ready for harvesting.
- Harvest mushrooms by twisting them gently from the base.
Investment & Profit Calculation
| Expense | Cost (₹ per month) |
|---|---|
| Spawn (seeds) | ₹10,000 – ₹15,000 |
| Substrate | ₹5,000 – ₹8,000 |
| Bags & Trays | ₹3,000 – ₹5,000 |
| Rent (if any) | ₹5,000 – ₹10,000 |
| Electricity & Water | ₹3,000 – ₹5,000 |
| Labor (if required) | ₹10,000 – ₹15,000 |
| Total Investment | ₹40,000 – ₹60,000 |
Earnings & Profit Calculation
- Production Capacity: 1,000 kg of mushrooms per month.
- Market Price: ₹150-₹200 per kg (for oyster mushrooms).
- Total Sales: ₹1,50,000 – ₹2,00,000 per month.
- Profit After Expenses: ₹90,000 – ₹1,40,000 per month.
With proper marketing and bulk selling, earnings can exceed ₹1 lakh per month.
How to Sell & Earn ₹1 Lakh Per Month from Mushroom Farming?
1. Sell to Local Markets & Grocery Stores
- Approach local vegetable vendors and supermarkets.
- Supply fresh mushrooms to hotels and restaurants.
2. Sell to Mushroom Processing Companies
- Sell in bulk to food companies that make mushroom-based products.
- Process mushrooms into dried, powdered, or pickled products for added value.
3. Online Selling & E-commerce
- List mushrooms on Amazon, Flipkart, or create a website.
- Sell through social media (Instagram, Facebook, WhatsApp).
4. Export to International Markets
- The global demand for mushrooms is increasing.
- Export to the USA, UK, and UAE through export agencies.
5. Mushroom-Based Products
- Make mushroom chips, soups, pickles, powders, and more.
- Sell in organic stores, ayurvedic shops, and supermarkets.
Common Challenges & Solutions in Mushroom Farming
| Challenge | Solution |
|---|---|
| Contamination | Proper sterilization & hygiene. |
| Inconsistent Yield | Maintain temperature & humidity control. |
| Market Competition | Offer high-quality, fresh products. |
| Storage Issues | Sell fresh quickly or process into dried mushrooms. |
If you’re looking for a profitable agribusiness, mushroom farming is one of the best choices. Start small, learn the process, and scale up to maximize your earnings.
Want to Start a Mushroom Farm?
✔ Learn more about government subsidies & training programs in India.
✔ Connect with local suppliers for mushroom spawn & equipment.
✔ Plan your business strategy and start earning from mushroom farming!
Would you like guidance on setting up a mushroom farm in Bihar? Let me know, and I can help!