Starting Mushroom Farming Business in India & Profit Margin

The exotic mushroom industry has a bright future. People are starting to grow exotic mushrooms are becoming popular because they are in sheds, garages, and suburbs. It also helps in immunity booster. Since more people are cooking at home, and trying interesting new recipes, the demand for mushrooms is increasing.

Boutique mushroom farms are opening up all over the world, giving customers a local option for fresh mushrooms. These farms typically produce between 20 to 200 kilos per week and will cater to small geographic areas. You can sell directly to customers and restaurants. Mushroom farming is becoming a popular small business idea in the food industry.

Steps to Mushroom Farming

Mushrooms are very important, apart from food, it is also used as medicinal. With growing demand abroad, mushroom exports are gradually increasing. In this article, we will guide you how to start a mushroom farming business.

Location

Mushroom cultivation requires very little space. You can start a unit in a 20ft x 20ft room, and produce about 50 Kg per week. It is a low-investment small business, and you can start making profits within a few weeks.

As your business grows, you can consider renting a small building to expand.

Gain experience

Growing mushrooms requires both study and experience. You need to understand the science and technology behind mushroom cultivation. 

Collection of spawn

You can either buy mushroom spawn, also known as “seeds” from the local market Or, produce it yourself using a sterile culture. Producing your own spawn can be cheaper in the long run.

Materials Required

To grow mushrooms, you can use disposable plastic bags or buckets with holes on the sides to let the mushroom  sprout. You’ll also need to purchase substrate such as straw or wood chips.

Food for mushrooms

Mushroom cultivation is an integral part of a circular where waste products can generate additional income. The substrate used to grow mushrooms  is often a by-product of grain and legume farming. Mushroom farms usually use sawdust or wood pallets as the  growing medium. To make the ideal substrate for mushrooms organic softwood fuel pellets, wood chips, and soy hulls are mixed together in a biodegradable bag, with water added to achieve the right moisture content.

Process of growing mushrooms

Mushrooms can be grown indoor and outdoor both

Indoor Cultivation : Indoor mushroom cultivation requires careful planning, technical expertise, and investments. The process begins by placing the culture medium into a steriliser, often a big drum, to kill any bacteria or mould. The substrate needs to be sterilised for about 20 hours. After completing sterilisation, keep it at 95 degrees C to room temperature, which can take several days.

A flow hood is a device which directs air through a High-Efficiency Particulate Absorbing (HEPA) filter, effectively removing contamination from the air surrounding the bags. To ensure a clean environment the flow hood is on and leave it for about 30 minutes.

You need to add scoops of mushroom mycelium into the bags of sterile substrate. The mycelium will then start to feed on the substrate. There is a layer of grain on top of the sterile substrate, which should be mixed with the substrate to help the mycelium grow faster. In about two weeks, these bags will be ready to grow mushrooms.

The inoculated bags need to be moved to an incubation room, where the temperature of the room should be between 21 to 22 degrees C. That is the best temperature for the mycelium to spread through the substrate and start consuming it.

In two weeks, the bags will begin to turn white as the mycelium fully colonises them. Once this happens, the bags need to be moved from the inoculation room to a fruiting chamber. This chamber should be follow four things:

• A temperature between a certain range.
• A very high humidity.
• Lights of a certain spectrum.
• Low carbon dioxide levels.

You need to make a small hole in the face of each bag  to allow the fresh air and humidity to reach the mycelium and  substrate. This will help the mushroom  start growing.

Log Cultivation : Log cultivation is a labour-intensive and slow method of growing mushrooms outdoors. First, you need to obtain logs through a tree company and buy spawn. Inoculate the logs with a mixture of mushroom spores and sawdust mixture at the start of the growing season. The logs will grow mushrooms in temperate weather, the cold rain followed by sunshine.

Choose the type of mushroom

Different types of mushrooms come with varying production costs, so you’ll need to choose which fits your budget.

There are  following types of mushroom:

Wild mushrooms such as Shiitake, Lion’s Mane, and Oysters are both profitable and easy to grow. They also provide some medicinal benefits.

Care and handling

Handling and climate are crucial in a small mushroom business. Mushrooms are delicate and can be easily damaged. So, they must be handled carefully during transportation and display in stores.

Selling mushrooms

The market is currently under-supplied; which keeps mushroom prices high and draws more cultivators. You can transport the mushrooms  to the local market. You can also open an online shop.

Make the product convenient to use

The produce in the market is moving towards convenience, with a focus on packaged prepared items. Many people cook mushrooms at home, so offering sliced and packaged mushrooms can make it easier for them.

Make an extra buck!

There are various small business opportunities with mushrooms. You can sell mushroom spawn to other growers, providing an additional income stream. Another idea is to provide ‘Grow Kits’ designed for first-time growers, and help the mushrooms grow quickly. There is also significant export potential for these kits in countries like the UK, Australia, and New Zealand.

You might also consider producing value-added products like dried mushrooms, mushroom tinctures, and mushroom jerky. These items can be quite lucrative, especially with the growing demand in the vegan market.

Mushroom Farming Business Profit

Mushroom farming can be a highly profitable business due to its relatively low investment and high demand in the food and health industries.

Mushroom Farming Profitability Estimate:

You can expect a profit margin of 40% to 60%, depending on operational efficiency and market reach.

Conclusion 

The  industry provides lots of lucrative opportunities. You can easily grow and sell fresh mushrooms. The future of mushrooms is also very bright because lot’s of people are shifting towards veganism. So, you can easily take benefits from both international and local markets. By handling this business properly you can easily make it a profitable business.

FAQs – Mushroom Farming Business