Mushroom Cultivation & Processing

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Uploaded on : September 2010

Product and Applications

Mushroom is a nutritious vegetarian delicacy and has many varieties. It contains many vitamins and minerals but is low on sugar and fat.It can be grown in artificially created and controlled environment. It needs a temperature between 20 and 30 C and a relative humidity of 55 to 75%. It can be ideally grown in hilly areas or in in artificially controlled sheds in plains. Fresh mushrooms can be readily sold in market or processed and dried. There are two main varieties of mushroom Button type or the oysters' variety. Oyster mushrooms are easy to cultivate and process and do not require huge investment.

Mushroom is and exotic and nutritious source of vegetarian diet. It is a major horticulture product all over the world. It is also becoming popular in our country. Fresh mushroom have very limited shelf life, but processed and dried mushrooms properly packed can be stored over a long period. Under the present conditions and with know- how developed by CFTRI it is possible to cultivate in any part of the country. The technology is available with CFTRI. Compliance with PFA Act for such a unit is essential.

Industry Profile and Market Assessment

Mushroom is a vegetarian delicacy and a suitable substitute for meat and eggs. It is easily digestible. It is very popular in most of the developed countries and is being accepted in many developing countries. Market for mushroom is growing rapidly because of ots rich nutritional value and special taste aroma, flavor etc. Many exotic preparations are made from them like soup, pickles, it can be cooked in traditional way as standard vegetable. It is also used as stuffing for various food preparations and for garnishing. Its consumption is basically confined to the urban region. It has a very short life after being harvested and are sold in fresh form. Their shelf life is enhanced by processing and properly packing in good quality polythene or proper canning. This can then be stored and transported for selling in far of markets. It is mainly consumed in hilly areas but as the nutritional awareness is increasing people from other regions are also taking it up. It is a very popular item in most of the star hotels and in urban households. Thus there is a good market for the product in metropolitan cities and centre for tourists. The rural rich with changing lifestyle are also catching up with the urban tastes and eating habits. Processed and preserved mushrooms will ensure the availability through out the year. It is a good substitute for standard vegetables and a good replacement for meat or eggs.. The major limitation with the bulk of Green vegetables is that they are grown in a limited period only lasting for 3-4 months and thus their availability is restricted to this period. Properly preserved packed and canned mushrooms results in it being easier to handle. This also helps in exporting the product to other countries where ever Indian cuisine is popular. It has a good demand in urban areas and metropolitan cities. Once the product establishes its Brand, export opportunities can also be explored. Middle East countries and other western countries with Indian population are places where it has demand.

Manufacturing Process & Know How

Process of Cultivation

Three aspects are to be taken care off for a successful cultivation of mushroom. These are good compost, reliable spawn and right temperature during growing period. Natural compost is prepared from horse dung and wheat or barley straw. Some quantity of chicken manure may be added. Compost preparation is very crucial. Mushrooms are grown in wooden trays or boxes. They are filled with compost and pressed firmly leaving a small space on top of the tray. The spawn is scattered on the surface which is covered with a thin layer of compost. The trays are then covered with old newspaper and water is sprayed to provide humidity. The trays are then stacked vertically. At a temperature 24-25 C white cottony mycelium spreads and permeate through the compost. It takes around 12 to 15 days for the complete spawn running. Ultimately the surface of the compost is covered with half to one inch level of casing soil. It is sterilized to kill insects. The casing soil is spread over plastic sheet and trated with formalin and stirred frequently for a week to remove formation of fumes. After casing the temperature has to be maintained at 24-25 C for three daysafter which it must be lowered to 18 C. Thus, batches of trays must be arranged in such a way that there is a regular daily production. The process chart is as follows:


Mushroom Processing

Fresh mushrooms have very limited life hence processing is recommended to enhance the shelf life. Initially mushrooms are washed in cold water then blanched in boiling water for 3-4 minutes.They are then dehydrated in drier and packed. It is advisable to pre treat mushroom in brine solution to prevent discoloration. Packing is very crucial as formation of moisture contaminates mushroom very quickly. The yield depends on many factors as moisture content in fresh mushroom, type of drier , process employed, moisture content require in the finished product etc. Average yield is 25%. Plain cans and brine of 2% salt and 0.2% citric acid are used for packing. The cans are vacuumed before sealing at 19 Cfor 7-8 minutes, sealed and processed under pressure for 20-25 minutes. The process flow chart is as under :


Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 90 tonnes per year. It is assumed that the proportion of fresh mushrooms will be twice that of canned mushrooms.

Land and Building

The main plant and machinery required for a capacity of 300 kgs per day for 300 days per year shall comprise

  • Tray type dehydrator - 1 nos.
  • Blancher - 1nos.
  • SS steam jacketed kettle. - 1nos
  • Straight line exhaust box with electricals - 1 nos
  • Canning retort with attachment - 1 nos
  • Can Seamer - 1 nos.
  • Mini Boiler - 1 nos.
  • SS tanks, trays, crates, weighing scales.
  • Laboratory Equipment

The total cost of machinery is estimated to be Rs.4.35 lakhs.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 0.60 lakhs.

The total requirement of power shall be 30 HP, the unit will need 1000 lts.of water daily.

Raw material and Packing Material

The basic raw material for the unit are spawn, wheat and barley straw, formalin, insecticides etc. for cultivation whereas salt and citric acid will be required for processing. Packing items like cans and plastic bags and corrugated boxes, labels, strapping etc will be required.

The total cost of raw material and packing material at full capacity is estimated to be Rs. 14.17 lakhs. The total requirement for spawn is estimated to be 10,500 kgs. at 100% capacity. At 60% capacity in 1st year the cost works out to Rs 8.50 lakhs.

The annual salary bill is estimated to be around Rs.5.58 lakhs.

Land and Building

For smooth operation of the unit, it will require 200 sq. mts of open land and a built up area of 100 sq. mts. The total cost of land and building is estimated at Rs. 3.10 lakhs.


For smooth functioning of the unit the requirement of man power is expected to be around 8 persons.

Sales person self
Skilled Workers 2
Semi skilled workers 2
Helpers 2

The annual salary bill is estimated to be around Rs.1.84 lakhs.:

Sales Revenue: (100% capacity)

Selling price varies depending on the product quality and demand. An average price of Rs 50,000/- per tonne has been taken for the canned mushroom and Rs 22,000/- for fresh mushrooms the annual income at installed capacity of 90 tonnes is Rs 28.20 lakhs.




Sales value(Rs. Lakhs)

Fresh Mushrooms 60 22,000 13.20
Canned Mushrooms 30 50,000 15.00
Total     28.20

Means of Finance

Promoters Contribution 10.10
Term Loan 24.00
Total 34.10

Cost of Project


Rs. lakhs

Land & Building 3.10
Plant & Machinery 4.35
Other assets 0.60
Contingencies 0.75
P & P expenses 0.75
Margin money 1.15
Total 10.70

Means of Finance

Promoters Contribution 3.20
Term Loan 7.50
Total 10.70

Profitability: (60%capacity)


Rs. lakhs

Sales 16.92
Raw material 8.50
Salary 1.84
Utilities 0.60
Stores & Spares 0.18
Repairs & Maintenance 0.30
Selling expenses 0.58
Administrative expenses 0.36
Depreciation 1.25
Interest on T.L 0.84
Interest on W.C 0.30
Cost of production 14.75
Profit 2.17

Requirement of Working Capital




Margin Money

Packing material 1 month 30% 0.50 0.15
Stock of finished goods 1 month 25% 1.00 0.25
Working expenses 1 month 100% 0.40 0.40
Sale on credit 1 month 25% 1.40 0.35
Margin money for W.C       1.15

Break Even point


Machinery Suppliers

  • M/S Gardener Corporation, Golf Links New Delhi 110003.
  • M/s Raylon Metal Works J.B.Nagar, Andheri(E) Mumbai.
  • M/S B Sen & Barry Co., Rohtak road, New Delhi.
  • M/S Cowel Can Ltd. Barotiwala, Dist Solan,
  • M/S Laxicon Engg. Sita Bardi, Nagpur
  • FMC Technologies Hong Kong Ltd. Bhubaneshwar Housing Society Pashan Road Pune.

Contact for more information

Information Manager
TIMEIS Project