How To Start Mushroom Farming Business & Get It Profitable

How to start mushroom farming business?

Mushroom farming business, is considered among the best one to choose when it comes to looking for a farming business that require low investments and result in higher profits. 

How to start mushroom farming business?

The global mushroom market was valued at $50.3 billion in 2019, and is expected to grow from $55.18 billion in 2023 to $126.9 billion by the year 2031. Not only this, the mushroom cultivation market is growing at a CAGR of 9.7% in the period 2024-2031.

However, the mushroom market size in India is expected to reach a CAGR of 12.7% from 2024 to 2030. Seeing the above numbers, mushroom farming is ready to bloom the agricultural sector. 

What is Mushroom Farming Business? 

Mushroom farming is also known by other name, i.e. Fungiculture. Mushroom farming basically involves growing mushrooms on sawdust or on wood pallets. 

For creating the desired substrate mushroom, it will require organic softwood, duel pallets, soy hulls, and wood chips. After combining all these in a biodegradable bag add water to achieve the sufficient moisture content. 

Key points:

  • This farming business requires less investment and results in higher profits. 
  • Helps in turning massive turnover.
  • Requires a small space to grow. 
  • Comes at a lower cost.
  • Requires good equipment depending upon the type of mushroom cultivation. 
  • Also mushrooms have a lower shelf life, which poses the challenge for its transportation and storage.

What is mushroom farming?

One of the biggest reasons for rapid mushroom cultivation these days is that mushrooms have more vegan content in them and are high in nutrients like Vitamin D, fiber, selenium, and ergothioneine. 

Countries like USA, China, Netherlands, are among the top producers of mushroom in the world, and not only this, the Mushroom farming business is also thriving in developing countries like India at a faster rate. 

This is interesting to know how growing this small fungi can result in a wholesome wide business. 

Mushroom Farming Business Plan 

Business plan for mushroom farming incorporates different elements which helps in boosting the mushroom business. To thrive and achieve success in the mushroom farming business, one should know about the different types of mushroom crops, market analysis of that crop, investment, plan, strategies for profit earning, serving, packaging and more

One of the most common mushroom types which is being cultivated is Button mushroom farming, which is more renowned and is consumed worldwide.

Types of mushroom farming cultivations

1. Button Mushroom Farming

These mushrooms are also known as White mushrooms or White button mushrooms, which make up 90% of the mushroom cultivation worldwide. These mushrooms are grown seasonal and in a controlled environment. It requires a temperature within a range of 20-280 C for vegetative growth and between 12-180 C for reproductive growth. Apart from that, it requires relative humidity between the range of  80-90% and enough ventilation during cropping.

2. Oyster Mushroom Farming 

It is one of the most suitable methods that involves production of protein rich food from various agro waste without composting. These can be grown on various substrates such as vegetable plant residues, paddy straw, maize stalks, etc. 

These are easy to grow and result in higher profits. These can be grown at a moderate temperature range from 20 to 300 C and at a humidity level between 55-70% for a period of 6 to 8 months in a year. 

Types of mushroom farming

3. Straw Mushroom Farming 

The mushrooms require a continuous production period of 2-3 months, and are soaked and spawned to create straw spawn mushrooms. The mushrooms are planted on a base material made up of bricks and soil, which is strong enough to hold the weight of the mushrooms. They require a temperature range between 35°C – 45°C.  

How to Start Mushroom Farming Business 

Mushroom farming has become one of the most popular farming businesses in the agricultural based businesses. Here are some steps that are important for getting started with it. 

Step 1: Decide the type of mushroom you want to grow and cultivate. Button mushrooms are cheaper and more popular while the Oyster ones are more costlier and bring in more profit. 

Step 2: Make the spawn and substrate ready, as spawn is required to seed the process and substrate is the place or thing on which the mushrooms will grow. One of the common substrates to be used is straw, which can also be chopped into small pieces. 

Step 3: After getting done with the spawn process, prepare the substrate by cutting the straw into small pieces, wetting it, and heating it in boiling water for half an hour. 

Step 4: Now drain the straw and spread it over a large surface so that it cools down quickly. 

Step 5: Now get some biodegradable plastic bags and put the straws inside and sprinkle the spawn on the straw, and tie them. Make some holes for the passage of air. 

Step 6: The process requires a temperature range of 78 degrees Fahrenheit and then place the bags on the shelf in a room without natural light, instead use red darkroom light. 

Step 7: Fruiting or popping out of the mushroom requires a high temperature range of 60 to 75 degree fahrenheit along with high humidity. Then keep the bags in a cool place for a day and then bring them to the fruiting room or place and open the plastic bags and let the mushrooms grow in a cool place. 

Step 8: Then comes the harvesting process, which requires twisting the mushroom from the stem before it uncurls completely. 

Step 9: Then pack the mushrooms carefully as they are very delicate and contact either the retailer or local marketer or sell it online.

Steps for mushroom farming

Top 10 Mushroom Producing States in India

In India, there are certain states which have the highest mushroom production, according to the National Horticulture Board (NHB). Here are some of the states listed with their mushroom production as of 2023. 

State NameMushroom Production 
Bihar 280 tonnes annually and contributes around 33.4% of total output.  
Maharashtra Produces 25,600 tonnes of mushroom annually and contributes 9.89% to total output. 
Odisha Produces 119,139 Kgs of mushroom and has a 9.66% share in the total output. 
Uttrakhand Produces 19,800 tonnes of mushroom and has a contribution of 7.65%. 
Punjab Has a production of 19,150 tonnes of mushroom and a contribution of 7.4%. 
Rajasthan 18,400 tonnes production of mushroom and has a contribution of 7.11%. 
Himachal Pradesh 14,800 tonnes production and has a contribution of 5.72%. 
Gujarat It has a production of 14,500 tonnes of mushroom and a contribution of 5.6%.
Chhattisgarh Has a production of 13,900 tonnes of mushroom and a contribution of 5.37%. 
Haryana Has a contribution of 5.38% to total share. 
Top mushroom producing states in India

Profitability with Mushroom farming business

Mushroom farming business seems to look profitable as this business is growing rapidly, not only in India but also on a global level too. 

As stated above, the global mushroom market value is expected to grow by $126.9 billion by 2031, while the Indian mushroom market size is expected to grow at a CAGR of 12.7% from 2024 to 2030.  These stats clearly depicts that mushroom farming business will be one of the profitable businesses in coming years. 

However, the profitability relies on various factors that are important to achieve with this business, like,

  • Working along with the market demand, 
  • Location of cultivation, 
  • Serving services on priority basis, 
  • Operating system, 
  • Business strategies, 
  • Approach, etc. 
  • Businesses should align their strategies well with the market and its changing demands and trends, and should do a thorough research before getting onto the business. 
  • The mushroom farming can help an individual in earning Rs1 lakh to Rs10 lakh of profit. These profit numbers can evolve or change with overtime. 

Mushroom farming business is one of the growing businesses in the coming time, be it from agricultural perspective or from business perspective, and is growing at a faster rate at both domestic and international level. 

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Published By: Aashita Singh
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Tarun Pathak
Tarun Pathak
6 days ago

Agreed, mushroom farming seems to be a profitable business in the near future!

Kusum Banerjee
Kusum Banerjee
4 days ago

Mushroom belongs to Kingdom Fungi (Biological Classification). I read about it in detail during my college days. We decided to launch a startup on Mushroom Cultivation but didn’t find a proper roadmap. This article is gonna be truly helpful for us.