Business Plan: Oyster Mushroom
1. About the Promoter
Name:
Location:
Educational Qualification: Master in Food Science
Experience: 2 years in agribusiness
Business Model: Sole proprietorship
2. Executive Summary
Oyster mushrooms are a protein-rich, vegetarian superfood suitable for diabetics and beneficial
for stomach ailments. They can be grown sustainably using agro-waste in 32–38°C temperatures.
This agribusiness project aims to produce 840 kg annually, supplying fresh and processed
mushrooms to urban and semi-urban markets.
3. Production Method
Oyster mushrooms will be cultivated in a controlled indoor environment using locally available
agricultural waste. This ensures sustainability and cost-effectiveness. Mushroom production
involves preparing a substrate sterilizing it, and inoculating it with mushroom spawn. The
substrate is then packed into bags or trays and kept in a controlled environment with optimal
temperature, humidity, and ventilation. After incubation, mushrooms are harvested in cycles over
4–6 weeks.
4. Market Potential
Mushrooms are valued for their nutrition, taste, and medicinal benefits. The following outlets
will be collaboration centers
Directly to restaurants
IGKV outlets
state-run Bihan markets
city collaborations.
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5. SWOT Analysis
Strengths:
• Mushrooms are cultivated indoors and do not require arable land. Small farmers and landless
workers constitute major fraction of mushroom cultivation.
• Mushroom is a short-duration crop with high yield per unit time.
Weakness
• Mushrooms are highly perishable vegetable crop with less than two to three days of storability.
• Non-availability of suitable integrated pest management (IPM) packages for major pests and
diseases of cultivated mushrooms.
• Non-implementation of agricultural crop insurance schemes to the mushroom crop and absence
of government sponsored minimum support price (MSP) for mushroom crop.
Opportunities:
• Mushroom being an indoor crop provides vast opportunities for empowering rural and urban
women through cultivation, production of value-added products and marketing. It also provides
vast opportunities for unemployed youths to take up mushroom cultivation and marketing.
• India can enter into a big and lucrative mushroom pharmaceutical international trade that is
presently monopolized by some East-Asian countries and the US. There is big scope for
diversifying mushroom export by including other mushroom species for export
• India attaining self-sufficiency in food production, the domestic market of mushroom is likely
to enlarge sooner than later.
Threats
• With globalization, there is competition not only for quality produce but also for the price.
• Improper processing and packaging, especially of canned mushroom products, might lead to
health hazards.
• Tough competition from East-Asian countries which are the major exporters of mushroom to
the western countries.
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6. Economics of the project
A) Basics And Presumptions
PARTICULARS UNIT QUANTITY
I.Technical Parameters
1. Cycles during year No. 4
2. No. of polythene bags required per cycle Piece 140
3. Quantum of paddy/wheat straw required kg./cycle 280
4. Quantity of spawn required per cycle Bottle 28
5.No. of labour 1
II. Economic Parameters
1. Cost of Paddy Straw Rs./kg 2
2. Cost of polythene bag Rs./piece 0.50
3. Cost of Spawn Rs./bottle 100
3. Labour wage rate Yearly 50,000
7. Yield per cycle Kg. 420
8. Sale Price Rs./kg. 150
Total Cost Of Project
PARTICULARS UNIT RATE Rs QUANTITY AMOUNT Rs.
I. Capital Cost
Land & Building Owned
Machinery & 5,000
Equipments
Furniture 5,000
Total A 10000
II Working Cost (One Crop Cycle requirement)
Polythene Bags Piece 0.50 140 70
Paddy/Wheat Straw Rs./kg 2 280 560
Spawn Rs./bottle 100 28 2800
Cost of Formaldehyde 600
Urea 400
Power 1000
Tansport 10000
Labour One Cycle 12500
Total B 27930
Total Cost of Project ( A + B) =
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Projected Profitability
Particulars Unit Unit Rate Quantity Year 1 Year 2
Total Yield per Year Kg
Total Income
Expenses
Paddy Straw Kg/year
Polythene Bags Pieces/year
Spawn Bottles/year
Transport Yearly
Labour Costs Yearly
Cost of Formldehyde Yearly
urea Yearly
Power and Fuel Yearly
Machinery & One time
Equipment
Furniture One time
Loading unloading Yearly
Total Expenses
Net Profit
Key Financial Highlights:
Total Project Cost: ₹
Net Profit: ₹
Financial Indicators (Benefit to cost ratio)
