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:

1. Button Mushroom (Agaricus bisporus) – Most popular, needs controlled environment.
2. Oyster Mushroom (Pleurotus spp.) – Grows on straw, easy to cultivate, and fast-growing.
3. Shiitake Mushroom (Lentinula edodes) – High medicinal value, great for export.
4. 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

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

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!