A PROJECT ON

MUSHROOM
CULTIVATION
 INTRODUCTION
 China- Largest producer & consumer.
 India- Hardly 3 decades old.
 Delicious food.
 No need of arable land.
 YEAR PRODUCTION
(Tones)
1985 4000

1995 30000

1996-97 40000

2003-04 70000
 TREND OF INDIA"S MUSHROOM
PRODUCTION(TONES)

80000
70000 70000
60000
PRODUCTION

50000
40000 40000 PRODUCTION
30000 30000
20000
10000
4000
0
1985 1995 1996-97 2003-04
YEARS
VARIOUS SPECIES OF MUSHROOM

 Oyster mushroom.
 Button mushroom.
 Milky mushroom.
 Coral mushroom.
 Puffball mushroom.
 OBJECTIVE OF THE PROJECT
 To improve economic condition of small &
marginal farmers.
 To provide them a better standard of living.
POTENTIAL
CENTRES
 PROJECT AREA
Pundibari, Cooch-Behar, West
Bengal.
Cultivation of button mushroom involves-
 Spawn- Technically equivalent to seed
of a plant.
 Compost- Substrate, partially
decomposed organic matter (straw of
wheat or paddy).
 Spawning & spawn run.
 Casing & case run.
 HARVESTING &
POSTHARVEST
MANAGEMENT
 Harvested as buttons.
 Two-third of total crop can be harvested within
first 3 weeks.
 Very short self-life.
 Precautions
 Cleanliness.
 Pasteurized compost.
 Healthy spawn.
 Personal hygiene of workers.
 Insect-proof nets & windows.
 MARKETING

Contract with hotels.

Transportation.
 FIXED COST ANNEX-A
PARTICULARS COST (Rs)

Crop rooms 40,000

Instruments 3550

Total 43550
 Annex-A1
Particul No. Area Total Cost/squa Total
ars each area re ft (Rs) cost
(sq. ft) (sq. (Rs)
ft)

Crop 2 510 1020 39.21~40 40000

rooms
 ANNEX-A2 (INSTRUMENTS)

Particulars No. Rate Total cost

(Rs/unit) (Rs)
Spray 1 1400 1400
PUMP
Thermomete 2 150 300
r
Hygrometer 2 500 1000
Bucket 1 150 150
Doormat 2 100 200
Balance 1 500 500
 RECURRINGCOST ANNEX-B
Particulars Cost (Rs)
Spawn, compost, casing soil 70,000
Transportation 12,000
Labour 9000
Chemicals 1500
Polythene sheets 4500
Electricity,water charges 1000
Miscellaneous 2500
Total cost (Rs)- 144050.00
Margin money- 25%
Loan borrowed (Rs)-
108037.50
Interest rate- 15%
 Repayment plan
Year Principal Interest Installmen Balance
(Rs) (Rs) t (Rs) (Rs)
1 36012.50 16205.63 52218.13 72025

2 36012.50 10803.75 46816.25 36012.50

3 36012.50 5401.88 41414.38 -

Total 108037.50 32411.26 464558.51

ESTIMATED PRODUCTION
Year Production/yea Price/kg Total return
r (Tones) (Rs) (Rs)
1 3.0 40 120,000

2 4.0 40 160,000
3 4.5 40 180,000
 CASH OUTFLOW
Year Fixed cost Recurring Installmen Total (Rs)
(Rs) cost (Rs) t (Rs)

1 43550 33500 52218.13 129268.13

2 40000 46816.25 86816.25

3 27000 41414.38 68414.38

 CASH INFLOW
Year Production/ Price/Kg Total (Rs)
year
(Tones)
1 3.0 40 120,000

2 4.0 40 160,000

3 4.5 40 180,000
 FINANCIAL ANALYSIS
Year Inflow Outflow Net flow DF@15 PWO PWI NPW
%

1 120,000 129268. -9268.13 .869565 112407. 104347. -8059.24

13 04 8

2 160,000 86816.2 73183.7 .756144 65645.6 120983. 55337.4

5 5 04 4

3 180,000 68414.3 111585. .657516 49257.4 118352. 69095.4

8 62 88 8

TOTAL 227310. 343683. 116373.

04 72 68
 FINANCIAL ANALYSIS
 NPW- Rs 116373.68
 B-C Ratio- 1.51
 IRR- 35%