Mushroom Farming Profit

Mushroom Farming

Mushroom farming is rapidly becoming one of the most profitable and sustainable agribusiness ventures for small and medium farmers. With low land requirements, quick returns, and minimal input cost, it has gained popularity across both rural and urban areas. Mushroom farming profit varies significantly among oyster, paddy straw, and button mushrooms.

Oyster mushrooms offer the highest profitability with moderate climate needs (20–30°C), a short growing period (25–35 days), and up to 6 cycles per year. They yield around 1500 kg per 1000 bags, generating NRs. 300,000 in revenue and a net profit of NRs. 150,000, resulting in a ROI of 2.0x.

In contrast, paddy straw mushrooms grow quickly in hot climates but provide the lowest mushroom farming profit, with only NRs. 10,000 net returns and 1.11x ROI.

Button mushrooms, though valuable in urban markets, require cool conditions, longer growing time, and higher investment, yielding a 1.5x ROI. Overall, oyster mushrooms are the most practical and profitable option for maximizing mushroom farming profit.

What is Mushroom Farming?

The process of cultivating edible fungus in regulated environments with organic substrates such as compost, sawdust, or straw is known as mushroom farming. It is a very effective and compact food production system that may be used in both commercial and small-scale settings. Because common types like oyster, button, and paddy straw mushrooms can be grown inside or in basic sheds, mushroom farming is perfect for backyard or peri-urban agriculture, particularly in areas with limited space but growing demand for high-value, nutritional commodities.

Types of Mushrooms for Commercial Cultivation

Choosing the right type of mushroom based on your climate and market demand is essential. Common types include:

a). Oyster Mushroom (Pleurotus spp.)

Oyster Mushroom (Pleurotus spp.) is a highly recommended choice for farmers due to its low technical barriers, robust yields (600–800 kg per 1,000 bags), and strong market demand in both urban and rural areas. It thrives in moderate temperatures (20–30°C) using simple substrates like paddy straw, requires minimal infrastructure investment compared to other varieties, and generates high returns (100% ROI per cycle) with up to 6 annual harvests, making it ideal for beginners and scalable commercial production.

b). Button Mushroom (Agaricus bisporus)

Button mushroom (Agaricus bisporus) is one of the most widely cultivated and consumed mushrooms worldwide, known for its mild flavor and firm texture. It requires cooler temperatures, typically between 16–20°C, and a longer growing period of 45–60 days compared to other mushrooms.

Cultivation involves using nutrient-rich compost as a substrate, which requires careful preparation and controlled environmental conditions including humidity, temperature, and ventilation.

Although it demands higher initial investment and more technical expertise, button mushrooms offer high market value, especially in urban and hotel markets. Their steady demand and premium pricing make them a profitable option for growers who can manage the specific cultivation requirements.

c). Paddy Straw Mushroom (Volvariella volvacea)

Paddy straw mushroom (Volvariella volvacea) is well-suited for cultivation in warm and humid climates, making it an ideal choice during the monsoon season. It grows rapidly and requires minimal infrastructure, often thriving in simple outdoor setups using agricultural waste like paddy straw as a substrate.

Due to its short growing cycle and adaptability to high temperatures and moisture, it is commonly cultivated in tropical and subtropical regions. This mushroom is especially popular in local markets for its soft texture and mild flavor, offering a quick harvest and income opportunity for small-scale farmers.

Land and Site Selection

Mushroom farming requires only a small area but demands specific site conditions to ensure success. The ideal location should be a shaded area or a controlled-environment room or shed, equipped with reliable water and electricity supply. Good ventilation and airflow are essential to maintain healthy growth, while easy access to markets and transportation helps in timely sales. Additionally, the site must be pest-free and maintain hygienic conditions to prevent contamination and ensure high-quality mushroom production.

Climatic Requirement

Mushrooms require specific climatic conditions to grow successfully, varying slightly depending on the species. Generally, they thrive in a controlled environment with moderate to high humidity (70–90%) and good ventilation. Oyster mushrooms prefer temperatures between 20–30°C, making them ideal for warm to moderate climates.

Button mushrooms, on the other hand, need cooler conditions, typically between 16–20°C, and are best suited for hilly areas or artificially cooled rooms. Paddy straw mushrooms flourish in hot and humid climates with temperatures ranging from 30–38°C, especially during the monsoon season. Consistent humidity, proper aeration, and protection from direct sunlight are essential across all mushroom types to ensure healthy growth and high yields.

Preparation & Cultivation Process

Button Mushroom Cultivation Process

a). Composting

Composting for button mushrooms requires preparing a specialized substrate by mixing wheat straw, chicken manure, urea, and gypsum, followed by a 20–25 day fermentation period to break down organic matter, eliminate pathogens, and create a nutrient-rich foundation essential for successful spawn colonization and fruiting—a critical step distinguishing button mushroom cultivation from simpler oyster or paddy straw methods.

b) Spawning

Spawning involves mixing mushroom spawn (mycelium culture) into the prepared compost at a rate of 0.5–1% of compost weight, then filling sterilized trays or beds uniformly to initiate colonization. The spawned compost is kept in dark, humid conditions (22–25°C) for 14–20 days, until it is fully permeated by white mycelium—a critical phase preceding the application of the casing layer.

c) Casing

Casing is an essential step in mushroom cultivation, typically applied 2–3 weeks after spawning when the substrate is fully colonized by mycelium. It involves spreading a thin layer of moist, well-structured material, commonly a mixture of peat and soil—over the colonized substrate.

This casing layer helps maintain surface moisture, promotes gas exchange, and stimulates the formation of mushroom fruiting bodies. It does not provide nutrients but plays a crucial role in triggering mushroom development by creating a favorable micro-environment for pinning and fruiting.

d) Temperature:

In order to cultivate button mushrooms successfully, a controlled environment with temperatures between 16 and 18°C and relative humidity levels between 85 and 90% is necessary. This is because these conditions promote the best possible mycelial growth and fruiting, which guarantees the production of high-quality mushrooms.

e) Harvesting

Button mushroom harvesting typically begins 30–35 days after spawning, when the caps are still closed and firm, ensuring optimal freshness, shelf life, and market value.

Paddy Straw Mushroom Cultivation

a). Soaking Straw

Paddy Straw Mushroom Cultivation begins with the critical preparation step of soaking the straw: Bundle the dried paddy straw into manageable bundles (typically 30-50 cm in diameter) and completely submerge them in clean water, ensuring they remain underwater, for a full 24-hour period; this thorough soaking is essential to achieve maximum water absorption, adequately soften the straw’s rigid structure, and initiate the decomposition process necessary to create a suitable substrate for mushroom growth.

b) Layering

Following the soaking process, the next critical phase is Layering: Prepare the thoroughly soaked and softened paddy straw bundles (typically 30-50 cm in diameter) by draining excess water; then, construct the cultivation bed by alternating layers – start with a foundation layer of straw bundles laid side-by-side, evenly spread a layer of mushroom spawn (inoculum) over the entire surface, ensuring good coverage, especially near the edges where mushrooms preferentially form.

Add a second layer of straw bundles perpendicular to the first for stability, apply another generous layer of spawn, and repeat this alternating pattern (straw-spawn-straw-spawn) until the bed reaches an optimal height of approximately 3-4 layers (around 45-60 cm high) and a width of 1-1.5 meters; lightly compress each straw layer after spawn application to ensure close contact between the substrate and the spawn, which is essential for efficient mycelial colonization and maximizes the number of potential fruiting points throughout the bed structure.

c) Covering

Following the layering of straw and spawn, the critical Covering phase begins: Immediately after bed construction, enclose the entire bed structure completely using a layer of UV-stabilized black polythene sheeting (or similar durable plastic), ensuring the plastic is draped loosely over the bed to allow slight air circulation while sealing the edges securely with soil or weights to prevent air gaps.

Maintain this protective microclimate for a period of 3–4 days, during which the plastic traps metabolic heat generated by the spawn, elevates the bed temperature to the optimal 28–30°C range, preserves near-saturation humidity levels (90–95%), and shields the developing mycelium from contaminants, desiccation, and temperature fluctuations, thereby accelerating the spawn run and initiating vigorous, white mycelial colonization throughout the straw substrate – a prerequisite for successful pinhead formation and fruiting in the subsequent stage.

d) Temperature

Maintain a temperature of 30–35°C with a humidity level of 80–90% to ensure optimal conditions for the spawn run stage in paddy straw mushroom cultivation, promoting vigorous mycelial growth before the temperature is later reduced to initiate fruiting. Maintain a temperature of 30–35°C with a humidity level of 80–90% to ensure optimal conditions for the spawn run stage in button mushroom cultivation, promoting vigorous mycelial growth before the temperature is later reduced to initiate fruiting.

e) Harvesting

In paddy straw mushroom cultivation, harvesting begins within 12–15 days after spawning, as the mushrooms grow rapidly in warm and humid conditions; they should be picked at the button or egg stage before the volva breaks for best quality, yield, and market value.

Oyster Mushroom Farming

a). Substrate Preparation

Oyster Mushroom Farming commences with critical Substrate Preparation: Select suitable lignocellulosic material – commonly wheat or paddy straw – and thoroughly submerge it in clean water for a prescribed duration of 6–8 hours, ensuring complete immersion to achieve optimal hydration (targeting 70-75% moisture content), soften the rigid structure, and begin leaching soluble inhibitors.

After soaking, drain excess water thoroughly to prevent anaerobic conditions, then immediately subject the wet straw to pasteurization – typically via steam treatment (maintaining 60-70°C for 6-8 hours) or chemical methods (e.g., lime bath immersion) – to eliminate competing microorganisms, pests, and weed molds while preserving beneficial thermotolerant microbes.

Finally, cool the pasteurized substrate completely to ambient temperature (25-30°C) on a clean surface before inoculation, as introducing spawn to hot substrate will kill the mycelium, thereby creating a selective, contamination-free environment essential for vigorous spawn run and successful fruiting body formation.

b) Bagging

The Bagging process commences: Using pre-pasteurized and cooled wheat or paddy straw (typically chopped to 3-5 cm lengths for optimal density and air exchange), fill specialized polythene bags (commonly 45-60 cm long, 25-30 cm diameter, 50-75 micron thickness, pre-fitted with microporous filter patches for gas exchange) by creating alternating layers – start with a base layer of moist straw (5-6 cm deep), evenly distribute a thin, generous layer of grain spawn (targeting ~5% spawn-to-substrate ratio by weight), ensuring coverage especially near the bag walls where primordia preferentially form.

Add another 5-6 cm straw layer, apply another spawn layer, and repeat this straw-spawn sequence until the bag is ~70% full (leaving headspace for knotting and future shaking).

Lightly compress each layer after spawn application to eliminate air pockets and ensure intimate substrate-spawn contact while avoiding over-compaction that restricts mycelial respiration, then securely tie the bag neck with sterile twine or a plastic collar below the filter patch to maintain a humid microclimate and prevent airborne contamination – this layered bagging creates an ideal, contained environment for rapid, uniform spawn run and efficient substrate colonization, setting the stage for high-yield pinhead formation.

c) Incubation

The critical Incubation phase begins: Transfer the securely sealed, spawn-inoculated substrate bags to a dedicated dark incubation room maintained at a stable temperature of 25–28°C (77–82°F) with passive air exchange to prevent CO₂ buildup.

Complete darkness is essential to suppress premature pinning and direct all energy into mycelial growth, allowing the spawn to rapidly colonize the straw substrate in a controlled, contaminant-free environment over 15–18 days – during this period.

Monitor bags regularly for uniform white mycelial expansion (indicating healthy spawn run) and immediately remove any bags showing discoloration (green, black, orange), slime, or foul odors (signs of contamination).

By day 15–18, dense, fully colonized substrate exhibiting tightly packed white mycelium and initial hyphal knot formation signals successful incubation completion, enabling the transition to the fruiting phase where light, humidity, and fresh air are introduced to trigger mushroom development.

d) Fruiting

For fruiting in oyster mushroom cultivation, the colonized bags are transferred to racks in a well-ventilated room with adequate light and maintained humidity, creating favorable conditions for the development of healthy fruiting bodies.

e) Harvesting

Harvesting of oyster mushrooms typically begins within 3–4 weeks after spawning, once the fruiting bodies have matured, and is carried out over multiple flushes, ensuring continuous yield under proper environmental conditions.

Pest and Disease Management

Fungal Disease

a) Brown spots, fungus, or Verticillium disease

Sometimes light brown spots appear on the mushroom caps, gradually developing into irregular shapes. Under microscopic examination, these spots reveal a thin, white to gray fungal growth composed of one-celled fungi. As the disease progresses, affected mushrooms become leathery, dry, and lose their typical smell.

To prevent this disease, timely preventive measures are essential. Cultivation rooms should be kept clean, well-ventilated, and free from dust, along with all instruments and casing materials. Temperature should not be allowed to rise excessively.

For effective control, Indofil M-45 should be sprayed at a concentration of 0.25–0.5% in three stages: first at the time of casing, second during pinhead formation, and third after the harvest of the second crop.

b) White fungus Mycogone disease

White fungus disease, caused by Mycogone, primarily turns the mushroom brown and produces a foul odor. Affected mushrooms become soft, the lower part thickens, and the cap (umbrella) remains undersized.

To manage this disease, the casing soil should be made bacteria-free through pasteurization or the use of chemical treatments, and spraying with Indofil M-45 is recommended.

c) Green fungus

This disease primarily affects compost and casing soil. There, a bacterium produces poisonous substances that damage the delicate tissues of the mushroom, causing the stipe to change from reddish-brown to deep brown. Additionally, the mushroom’s cap bears wounds from a deep green fungus. Applying benimidazole or dithiocarbamate to the compost or casing soil to eliminate bacterial infection is one way to take preventive action, which is essential.

d) Truffle

Truffle disease, caused by Dileomysis microporus, results in the development of irregularly shaped, light-yellow mushrooms ranging from 1.0 mm to 3.5 mm in height. This disease hinders spawn development and thrives in poorly ventilated, moist conditions. To control it, rooms should be well ventilated and protected from excess moisture. During the spawn development, maintaining a temperature of 18°C and ensuring the crop temperature does not exceed 17°C is essential for prevention.

e) White Plaster mould

White Plaster Mould, caused by the fungus Scopulariopsis fimicola, is a disease originating in compost and casing soil, appearing initially as white spots that change to a light pink color. This fungal competitor produces harmful metabolites and can damage developing mushrooms. If the mould occurs, treatment involves spraying affected areas with a 2% Formalin solution. Prevention is key and is achieved by applying Carbendazim at 10 PFM (Parts per Million) to the compost during the spawning phase to eliminate the fungus before it establishes.

Bacterial Disease

a). Bacterial Blotch

Bacterial blotch is a bacterial disease characterized by the appearance of brown blotches on the mushroom cap, which initially appear light in color and gradually turn dark brown. To control this disease, spraying with 150 ppm sodium hypochlorite is recommended.

Pests and Their Control

a).  Mites & Flies

Mites and flies are common pests in mushroom cultivation, and their management involves maintaining strict hygiene in the growing area and using fly traps to control their population effectively.

b) Nematodes

Nematodes infest mushroom cultivation by consuming the spawn, leading to significant damage; this pest can be controlled through thorough pasteurization of the compost and casing materials. Additionally, as a preventive chemical treatment during compost preparation, Furadan should be applied at a rate of 120 grams per 300 kilograms (or metric ton equivalent) of compost to eliminate nematodes before spawning.

Mushroom Harvesting Yields

Cost of Investment for Oyster Mushroom (For 1000 Bags)

Income from Oyster Mushroom (For 1000 bags)

Analysis of Mushroom Farming Profit (Oyster Mushroom)

Profitability Compare Between Three Mushroom Cultivars

Crop Calendar for Oyster Mushroom Cultivation (1,000-Bag Scale)

This schedule assumes year-round production with a monsoon-season adjustment:

Sources

Grimm & Wösten (2018). Mushroom production in circular economies. Applied Microbiology and Biotechnology, 102(18): 7795–7803.

Food and Agriculture Organization (FAO)

NARC, Nepal

Punjab Agriculture University

CABI Digital Library