Start mushroom farming in India with our in-depth, expert guide covering the most profitable mushroom varieties, climate control, step-by-step room setup, spawning methods, yield calculation, pricing, government subsidies, and professional training programs.
🔹 Introduction
Mushroom farming is one of the fastest-growing agribusinesses in India. With growing urban demand, medicinal benefits, and low startup costs, it is now seen as a highly profitable venture for marginal farmers, unemployed youth, and even urban home-growers. Unlike traditional farming, mushroom cultivation requires very little land, consumes agricultural waste as input, and can yield a significant profit margin within 45 days.
In this ultimate guide, you will learn:
The most suitable mushroom types for Indian climates
Scientific and environmental requirements for cultivation
How to set up your farm professionally
Realistic yield estimates and pricing models
Support schemes, subsidies, and training options
Let’s explore how to build a sustainable and scalable mushroom business in India from scratch.
1. Types of Mushrooms (Button, Oyster, Milky, Shiitake)
1.1 Button Mushroom (Agaricus bisporus)
Climate: Cool and controlled (14–18°C)
Substrate: Wheat straw compost
Cycle Duration: 35–45 days
Input-to-Yield Ratio: 100 kg compost → 15–20 kg mushrooms
Profit Margin: Moderate (requires AC/grow room)
Ideal For: Farmers in northern India during winter or those with temperature-controlled units.
1.2 Oyster Mushroom (Pleurotus spp.)
Climate: Tropical (20–30°C)
Substrate: Paddy straw, sugarcane bagasse, cardboard
Cycle Duration: 20–25 days
Yield per Bag: 500g to 1.2 kg
Profit Margin: High
Ideal For: Beginners due to its low cost, minimal infrastructure, and fast returns.
1.3 Milky Mushroom (Calocybe indica)
Climate: Warm and humid (25–35°C)
Substrate: Straw-based, with casing layer
Cycle Duration: 45–60 days
Growth Difficulty: Intermediate
Ideal For: Southern states, especially Tamil Nadu, Odisha, Andhra Pradesh.
1.4 Shiitake Mushroom (Lentinula edodes)
Climate: 20–25°C (cold zones or AC setup)
Substrate: Hardwood logs or sterilized sawdust
Cycle Duration: 90–120 days
Market Price: ₹300–500/kg (export/Niche)
Ideal For: Advanced farmers and urban setups with stable temperature controls.
2. Mushroom Cultivation Requirements
2.1 Environmental Conditions
MushroomTemp (°C)Humidity (%)LightCO2 Level
Button14–1885–90Low< 0.08%
Oyster20–3080–90Low< 0.1%
Milky25–3585–90Diffused< 0.08%
Maintain humidity using foggers or wet gunny bags
Light should be diffused or indirect
Ventilation is crucial to prevent contamination and CO2 build-up
2.2 Substrate Selection
SubstrateCost (per kg)Suitability
Paddy straw₹6–8Oyster, Milky
Wheat straw₹8–12Button, Oyster
Cotton waste₹4–6Oyster
Hardwood sawdust₹10–15Shiitake
Soaking, boiling/pasteurization, and drying are key for optimal yields.
2.3 Spawn
Cost: ₹100–150 per kg
1 kg spawn can inoculate 20–30 kg substrate
Buy from ICAR, KVKs, or licensed suppliers only
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3. Step-by-Step Setup (Rooms, Substrate, Spawning)
3.1 Grow Room Setup
Space: 100 sq ft → 100–150 grow bags (Oyster)
Requirements:
PVC rack system or steel shelves
Humidifier (fogger), exhaust fan, thermometer, hygrometer
Polyhouse or brick room with black net
Investment:
Basic unit: ₹5000 – ₹10,000
Advanced insulated room: ₹25,000+
3.2 Substrate Preparation
Example: Oyster Mushroom (Paddy Straw)
Chop straw (2–4 inch pieces)
Soak in hot water (~70°C for 45 mins)
Drain excess water, cool
Fill in poly bags, layering with spawn
Close bags, poke air holes
3.3 Spawning Phase
Keep in spawn run room (dark, warm)
Duration: 10–15 days
Check for white mycelium growth
3.4 Fruiting Phase
Move to fruiting room (light + humidity)
Cut slits in bags
Spray water 2–3 times/day
Harvest in 5–7 days after pinhead formation
.png "Mushroom Farming Process – From Substrate to Harvest\"")
4. Harvesting and Market Price
4.1 Harvesting Tips
Harvest just before the caps fully open
Use sanitized knife/scissors
Avoid harvesting wet mushrooms
4.2 Yield Calculations
MushroomYield/BagCycle (Days)Market Price/kg
Oyster800g–1.2 kg25–30₹80–120
Milky1–1.5 kg40–50₹100–150
Button15–20 kg/100kg compost35–45₹100–180
Monthly revenue from 100 sq ft setup: ₹15,000–30,000 (Oyster/Milky)
4.3 Selling Strategy
Local mandis & weekly markets
Restaurants and hotels
Organic stores & direct delivery
E-commerce (Instagram, WhatsApp, Amazon Kisan)
.png "Mushroom Farming Income Potential from 100 sq ft Unit\"")
5. Government Support & Training Programs
5.1 Subsidy Schemes
NABARD Allied Farming Loan: 30–50% subsidy on setup
PM-FME (Micro Food Processing): Training + funding
State Horticulture Departments: Capital grants & marketing aid
5.2 Where to Get Training
InstituteLocationSpecialization
ICAR-DMRSolan, HPButton, Shiitake
Tamil Nadu Agri UnivCoimbatoreMilky + Business plan
KVK (Krishi Vigyan Kendras)All over IndiaOyster/Milky basics
Training Includes:
Substrate handling
Grow room hygiene
Disease & pest control
Packing & branding techniques
.png "Government Support & Training for Mushroom Farmers")
Conclusion
Mushroom farming in India is no longer limited to the Himalayas or forest zones. With the right knowledge and environment, anyone can earn a consistent income with mushrooms from a backyard shed or a room in their house.
Start simple with oyster or milky mushrooms. Once you get the hang of the cultivation cycle, scale your setup, experiment with higher-value mushrooms like Shiitake, and build your own local mushroom brand.
The market is growing. The startup costs are low. And the government is ready to support you. All that’s missing? Your action.
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suggested reading
1.Hydroponics Farming: A Modern Soilless Revolution in Agriculture
2.Fish Farming Subsidy & Government Schemes in India – Complete Guide for 2025
3.Visit ICAR-DMR for spawn, cultivation guides, and commercial training programs
