Mushroom Farming

Mushroom cultivation in India

  1. Mushroom Cultivation is Taxable in India
  2. Requires Infrastructure for a highly profitable large-scale unit and moderate to high investment.
  3. Steep learning curve
  4. Profit of up to 5-6 Lakhs per Year from one unit (1000 Square Feet) if set up well
  5. Wide varieties of consumable mushrooms and some medicinal mushrooms
  6. Steady market, depending on location
  7. Possibility of Dried Mushroom With good rates and Low wastage in some varieties
  8. Depends highly on the Weather. A controlled environment is important
  9. Some devices like CO2 Monitor and Humidity Controller can help with increased yield and determining a good Environment for the growth of mushroom
  10. Moderate to High ROI depending on how the mushrooms are cultivated, Variety, and provision for drying and storage.

Download the FREE Ebook
on Button Mushroom Cultivation here!

In this introductory course, you will learn the basics of cultivating mushrooms on a budget and in small spaces. The course will focus on two types of mushrooms: Oyster and Lion’s Mane, which have nootropic properties. The farming techniques taught in the course can also be applied to other wood-loving mushrooms.

Is mushroom cultivation profitable?

Mushroom Cultivation is one of the top 10 Most profitable businesses when it comes to farming and agriculture in general. In India, Mushroom farming has steadily increased and farmers are taking up mushroom farming willingly. While most mushroom farmers set up a mushroom farm in thatched roof systems, there are others, which are much more commercial and go for a concrete structure with a controlled environment, air conditioning, and humidifiers. Nevertheless, Mushroom farming has been very profitable for most farmers, if done right and the farmers are well educated in the process of cultivation.

There are times when mushroom cultivation has been non-profitable for farmers. Most of these farmers who went on a loss have a lack of proper knowledge or resources attributed to their failures. Unlike traditional crops, Mushroom farming requires a better understanding of humidity, temperature, sanitation, and hygiene among other factors. From seed sowing to creating the growing medium, everything is different from the traditional farming methods. The learning process is different and farmers should be willing to learn. 

Most mushroom farmers see a steady profit in the 3rd or 4th year. The first 2-3 years, though profitable, many farmers will see loss due to certain factors, usually attributed to a mistake in weather control, CO2 control, or humidity problems. Farmers who can learn to control these features indoor are often more successful and get a higher profit.

Profit from the cultivation of mushrooms depends on the variety of mushrooms farmed. Button mushrooms, though in very high demand have a lower price. Fortunately, the shelf life of button mushrooms is much higher than other varieties. Oyster mushrooms have a shelf life of only 2 days and sell from 150 Rs per KG to 200 Rs Per kg. Milky, shitake are all varieties that fall in the same price category. A bag of Mushroom Medium can grow up to 1 KG of mushroom. 

With a 4-5 Layer set up in a 1000 Square feet area, Expect to grow around 1000 Kilos of mushrooms per cycle. Mushroom can be cultivated throughout the year and depending on variety, you could grow up to 5 Crops a year. An average of 4000 Kilos of mushroom can be cultivated in a 1000 Square feet area, with proper setup. With even 75% as an expense, A farmer can get a decent 1Lakh rs as pure profit from mushroom cultivation and that is the bare minimum. Most farmers will not require more than 50% in expense. 

Because you are using Just 1000 Square feet area of unused or unproductive land to cultivate mushrooms, the margin for mushroom cultivation is extremely high and so is the profit. Mushroom Cultivation is a highly profitable business. 

Contact 8055177977 For more details from Expert Mushroom farmer Hari Sutar from Guruji Mushroom Farming.

Full Mushroom Growing Course on

how to do mushroom cultivation

Mushroom Cultivation is one of the top 10 Most profitable farming businesses and it is also one of the most sought after. Farmers usually involve in mushroom farming hoping for high profits and quick. Unfortunately, Mushroom cultivation is not as easy as it seems. The whole process is different from traditional farming and requires intricate knowledge and has a steep learning curve, not to mention attention to detail.

To begin mushroom cultivation it is important that you have a covered space. A shed or a thatched roof may suffice but the better the construction and roofing, the more control you have on your environment. The area should be chosen based on certain factors including ventilation and lighting and the ability to control both. Water should be available too. Apart from the location, you should also be able to procure good raw materials. Seeds, Compost are key. The best quality seeds and Compost will determine how much you produce per crop. Plastic sheets, Trays, and shelves may require additional investment based on your project. 

Some extra gadgets which may be useful and even essential include a room temperature meter, CO2 meter, and humidity monitor. Though these gadgets are not entirely essential, having them will make it easier to make decisions rather than hoping that you are on the right track.

With the infrastructure out of the way, comes the next biggest requirement for mushroom farming. Understanding the process. While most crops cultivated outdoors are seasonal, mushrooms, cultivated indoors are year-round. Knowing how much time it takes for each of the steps in growing mushrooms is important. Proper education at a farm will set your steps ahead. Proper training is available from most Agricultural universities in India for a nominal cost for farmers. Plenty of mushroom farmers also provide this information at their farms. These days you can get online courses for Mushroom cultivation too.

Before starting mushroom farming, also check locally on which variety is sold and preferred in the market. 


does mushroom cultivation smell.

No. Mushroom cultivation on the contrary is a very clean process. While we all know fungal growth comes from Stale food, the process of cultivating mushrooms is very similar, and mushrooms are fungus in reality. But the smell in a mushroom unit is close to earthy. There is no stench though the environment is humid.

How mushroom cultivation is done

Mushroom cultivation is done indoors. Commercial cultivation of mushrooms outdoors is not possible as it is difficult to control the environment for the perfect growth of mushrooms throughout the year. The entire process of Mushroom Cultivation, how it’s done, and a lot more is beyond the scope of a single article, and the best way to get complete guidance for the same is through a detailed course. While youtube videos do have a lot of information, they are scattered and not well documented. Online courses like Rocketskill at and other programs are much more structured and easier to learn from. For more information, click the link above.

How mushroom cultivation fits in vertical farming

The Term Vertical farming means cultivating food to produce one on top of another layer. This could be any produce from Ginger, turmeric, Lettuce, or even microgreens. Mushroom farming can be done in vertical farming and traditional methods. Vertical farming of mushrooms is much more space-efficient and cost-effective. Technically, Mushroom farming is best when done in a vertical method.

How mushroom cultivation can be done at home.

While cultivation of mushrooms at home is possible, it’s not feasible. A small production unit will still require room-specific for the cultivation of mushrooms. This room will be moist and requires ventilation. While some people can actually spare a room for this purpose, the requirements for mushroom cultivation may not be met. Even when met, it’s not a feasible option to grow mushrooms for your home needs alone. 

how is mushroom cultivation business in India

Mushroom Cultivation in India is one of the most profitable businesses in India. As a matter of fact, Mushroom cultivation is among the top 5 most profitable agribusiness in India. The minimal requirement of space and abundant knowledge and help makes growing mushrooms possible for any climatic conditions. Also, the growing demand and the inability to meet the demand have always put mushrooms on the higher end of the price scale. Mushroom businesses can be estimated to thrive for the coming decade at least.

what is mushroom cultivation called?

Mushroom Cultivation is Also referred to as fungi culture. Technically, All mushrooms are fungi and the cultivation of Mushrooms, Edible and medicinal are classified as fungi culture.

what are mushroom cultivation methods?

The two most common methods include growing in straw and growing on wooden Logs. Growing mushrooms in rice straw is widely practiced and is commercially more feasible than growing on logs. 

why mushroom cultivation is important

The importance of mushroom cultivation and farming is not just beneficial economically for farmers but also adds value to the consumers. The high nutritional value and health benefits of mushrooms are now widely known. Mushrooms are well researched for medicinal purposes and also for dietary requirements. Some mushrooms are known to slow down cancer and other diseases while others are known to prevent them. As a farmer, The cultivation of mushrooms adds more monetary value and usage of space efficiently. With limited space, it’s possible to cultivate mushrooms throughout the year and earn as much as open farming in an acre of land with just 1/10th of the same space.

why mushroom cultivation in need of modern agriculture

Most farmers are still into open farm cultivation and rarely take up other forms of farming. For instance, the ratio of farmers who have poultry of fish farms is far lesser than those who do open farm cultivation. It’s the same for beekeeping or mushroom farming. Unlike traditional farming methods, these areas of farming are much more specialized. Mushroom farming is important in modern farming because it enables farmers to specialize in certain areas of farming. IT does not matter what farming practices the farmer uses, it’s always important to find alternative means to grow more in limited space. Today, 80% of the farmers in India own less than an acre of land. Enabling more production with these limited land resources is key to better income fo the farmers, but also ensures that modern agriculture benefits from every piece of land.

mushroom farming in Kerala

Kerala has tropical weather. There are no harsh winters and the summers are humid and moist. The monsoons are heavy and humid. The weather conditions in Kerala are natural for mushroom cultivation. Mushroom is common in fields and opens farms in Kerala during the season. While this may be one of the best spots for mushroom cultivation, the climatic conditions change, and change in season is not feasible for commercial mushroom cultivation and open farm mushroom farming. 

Farmers in Kerala understand this factor and have used controlled environments for mushroom cultivation for a long. While some farmers create makeshift structures with bamboo and woven coconut leaves, others who are willing to invest more, go for a complete structure with all the facilities including humidity controllers and air conditioning when required.

As for the demand, the mushroom is always in demand in Kerala. Mushrooms are widely consumed during the season and are available naturally from rice farms during the early monsoons. While open farm mushrooms are not available during another season, the mushrooms cultivated in units by farmers are always in demand. The types of mushrooms are also of interest. Most mushrooms on the open farms are perishable in less than 12 hours. While the mushrooms cultivated in controlled environments have a slightly better shelf life. Oyster mushrooms and button mushrooms are the 2 main varieties that are cultivated in Kerala by farmers. 

One such farmer is Shije Varghese and she is featured in a lot of articles with regard to mushroom farming. You can read more on her mushroom farming business “CoonFresh” at

Plenty of farmers are taking up mushroom farming and it’s important to understand that, unlike traditional farming, mushroom cultivation requires a completely different skillset. Training is important and support is required from experts. The Kerala Agriculture university provides training, seeds, and support for mushroom farming for those who are interested. The Mushroom Farming training is conducted in Malayalam. For those who are interested in online courses, visit

mushroom farming area required

Every beginner has the question of what to invest and how much return a project will incur. When it comes to mushroom farming, the primary concern is often, how much area is required for mushroom farming. Mushroom farming can be done in a 100 Square feet area or can go to 1000’s of square feet. The area and the setup (infrastructure) determines how much profit you can make. 

For a 100 Square feet area with proper infrastructure, a small mushroom farm can be put up to generate enough mushrooms for your personal use and some extra. Expect to generate around 1-2 KG of mushroom during the peak times and a lot lesser during others. Commercially, a small space is not a viable option. Setting up a 1000 Square feet area with infrastructure is a more commercially viable option.

mushroom farming and profit

If you have been watching youtube videos and hoping to make Lakhs over the next year with mushroom farming, beware. These are farmers with years of experience, refined infrastructure, and high skill sets. It will take time to generate Lakhs or sometimes even half a lakh with 1000 Square feet area. While this is possible, It’s not as easy as it seems. The key to any farming practice or business is to ensure that your product is in the market 365 days of the year. When the mushrooms are at peak price or at the lowest, you should be able to deliver the same quantity of mushrooms to the market. There should be no ups and downs in production and an even production should be maintained.

If you are able to manage constant production throughout the year with 1000 Square feet of area, chances are you will average a decent profit. For the same demonstration, let’s take an example of a 1000 Square feet area with vertical hanging baskets for oyster mushrooms. 

Each bag can generate up to 1.5 Kg of mushroom per cycle and each cycle lasts 2 months. An average of 9 KG of mushroom can be cultivated in a year per bag. 1000 Square feet area can accommodate 2000 Bags of mushroom. So theoretically, you would be producing 18 Tonnes of mushrooms per year. 

This is exciting but remember… this is theoretical. Practically, some farmers do produce a LOT more and others a LOT LESS.

18 Tonnes of mushroom at an average price of 160 per Kilo (70 in wholesale and 250 in retail) would amount to 2880000 Rs that’s 28 Lakh 80 Thousand rupees per year. This is the turnover and you can cut 50% of the total amount towards expenses and maintenance. 

Let’s put the numbers in a more easily readable format to look at the figures closely.


QtyCost in Rs
Polythene / tarpaulin5,000
Grass / Hay to cover shed10,000
Plastic covers for Bags5 KG1,000
Hay/Growing Medium2 Tonne20,000
Labour2 Labours 2,33,000
Water and Misting10,000
Construction costs25,000
Spawn200 KG24,000

The total investment for one year is Approximately 4 Lakh 68 thousand. Construction costs will reduce drastically over the second year if you use the same area. Bamboo, polythene, etc can be reused and the cost for construction would be a lot lesser too. 

Let’s look at the Yield and return now

Per Bag Yield 1.5 KG
Total cycle per year3 (though you can do 4 Lets assume only 3 cycles per year)
Total Bags per 1000 Square Feet2000
Average Cost Per KG of Oyster MushroomRs 160
Total Yield Per year9000KG
Total Revenue (gross)14,40000
Net Income9,72,000

An average of 9 Lakh 72 Thousand rupees as pure profit from Mushroom cultivation is possible with 1000 Square feet area. The construction is purely makeshift and not permanent. The setup has no fancy equipment and weather controllers. This reason alone is sufficient to start a mushroom farming business.

FAQs (Frequently Asked Questions) on Mushroom Farming in India

Q: What is mushroom farming, and how is it different from traditional agriculture?

A: Mushroom farming, also known as mushroom cultivation, is the process of growing mushrooms for commercial or personal use. Unlike traditional agriculture, mushroom farming does not involve the cultivation of crops in the soil. Instead, it relies on special growing mediums, such as compost or substrate, to support mushroom growth.

Q: What are the popular varieties of mushrooms cultivated in India?

A: In India, the popular varieties of mushrooms cultivated include White Button mushrooms (Agaricus bisporus), Oyster mushrooms (Pleurotus spp.), Milky mushrooms (Calocybe indica), and Shiitake mushrooms (Lentinula edodes). Each variety has its unique growth requirements and culinary uses.

Q: What are the ideal growing conditions for mushroom cultivation?

A: Mushrooms require a controlled environment with specific temperature, humidity, and ventilation. The ideal temperature for most mushrooms ranges from 20°C to 30°C. Humidity levels between 80% to 90% are essential, and proper ventilation helps in preventing the buildup of carbon dioxide.

Q: Can mushrooms be grown on a small scale by individual farmers or enthusiasts?

A: Yes, mushroom farming can be practiced on a small scale by individual farmers, entrepreneurs, or even enthusiasts. It is well-suited for small-scale setups like home gardens, backyards, or unused spaces with controlled conditions.

Q: What type of substrate is used for mushroom cultivation?

A: The substrate is the material on which mushrooms grow. Common substrates used in mushroom farming include agricultural waste such as wheat straw, paddy straw, sugarcane bagasse, or sawdust. These substrates provide the necessary nutrients for mushroom growth.

Q: How long does it take for mushrooms to grow from the substrate?

A: The time taken for mushrooms to grow varies depending on the mushroom variety and growing conditions. Generally, it takes anywhere from a few weeks to a couple of months for mushrooms to grow from the substrate.

Q: What are the challenges faced in mushroom farming, and how are they mitigated?

A: Some common challenges in mushroom farming include contamination by molds or bacteria, maintaining proper humidity and temperature, and managing pests. These challenges are addressed through strict hygiene practices, using quality substrate, and implementing proper sterilization methods.

Q: Is mushroom farming economically viable in India?

A: Yes, mushroom farming can be economically viable in India. Mushrooms have a high demand in the market due to their nutritional value and culinary versatility. With proper planning, efficient management, and marketing strategies, mushroom farming can be a profitable venture.

Q: What are the primary uses of mushrooms in the culinary industry?

A: Mushrooms are widely used in the culinary industry for their unique flavors and textures. They are used in various dishes such as soups, stews, salads, stir-fries, and as toppings on pizzas and burgers.

Q: Can mushroom farming be a sustainable agricultural practice?

A: Yes, mushroom farming is considered a sustainable agricultural practice. It recycles agricultural waste and converts it into a valuable food resource. Additionally, mushrooms require less water and space compared to traditional crops, making it an eco-friendly option.

Q: How can one start mushroom farming in India?

A: To start mushroom farming in India, one needs to acquire the necessary knowledge, training, and technical support. It is essential to select suitable mushroom varieties, arrange the required infrastructure, procure quality spawn (mushroom seeds), and follow good agricultural practices for successful cultivation.

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