Milky mushroom cultivation process and its cost analysis

Detailed business plan of milky mushroom cultivation and its cost analysis according to Indian conditions

1. SHORT VIEDO CONTEST TITLE : MILKY MUSHROOM CULTIVATION AND VALUE ADDED PRODUCTS

2. MUSHROOM CULTIVATION PROCESS

3. Different types of mushrooms majorly available in market 1. Button mushroom

4. 2. oyster mushroom

5. 3. Milky mushroom

6. Sl.No Mushroom type Required temperature ( o C) Required humidity (%) Vegetative growth Reproductive growth 1. Button mushroom 20-28 12-18 80-90 2. Oyster mushroom 20 -30 20 -30 55-70 3. Milky mushroom 25 - 35 25 - 35 85-90 Climatic conditions for growth of different types mushroom

7. ABOUT MILKY MUSHROOM Milky mushroom ( calocybe indica ) is second tropical mushroom suitable for cultivation in tropical and subtropical regions of the country. It can grown in temperature 25 - 35 °c and relative humidity 85-90% Time period (sowing to harvesting) is 45-50 days.

8. HEALTH BEBEFITS OF MILKY MUSHROOM Milky mushrooms are an excellent source of vitamins B2, E, and A, phosphorus, potassium, and selenium, and also contain calcium, vitamin C, iron, and zinc.  It strengthens and regulates the immune system, which makes it a powerful defense against infections. It is also said to have antibiotic, anti-tumor, and anti-cancer properties, and to help in regulating diabetes, lowering bad cholesterol levels, and to have strong antioxidant properties.

9. BASIC MACHINERY AND EQUIPMENT REQUIRED FOR MILKY MUSHROOM CULTIVATION 1. Chaff Cutter Used for cutting of paddy straw Power operated (1-3 hp) Operating speed 400 – 600 kg/hr

10. BASIC MACHINERY AND EQUIPMENT REQUIRED FOR MILKY MUSHROOM CULTIVATION 2. Humidifier Used to maintain required humidity levels in growing rooms 3. Digital temperature and humidity meter used to daily monitoring of temperature and humidity during cultivation

11. BASIC MACHINERY AND EQUIPMENT REQUIRED FOR MILKY MUSHROOM CULTIVATION 4. Manual sprayer Used for spraying water in beds at cropping period. Manual operated (16 litres) capacity.

12. Paddy straw Spawn Black/ red soil Polyethylene bags Drums Tarpaulin cover Formalin Bavistin Chalk powder RAW MATERIALS REQUIRED

13. MILKY MUSHROOM CULTIVATION PROCESS Step 1: chopping of paddy straw into 1 to 2 inch length using chaff cutter. Step 2 : soaking of paddy straw with chemically treated water(Bavistin of 7.5g and formalin 125ml for 100 liters water) and seal the drum with polythene sheet, rest for 15 to 18hrs.

14. MILKY MUSHROOM CULTIVATION PROCESS Step 3: After 22 hrs the excess water is drained out and paddy straw should be dried under sun until it gets the moisture content of 20%

15. MILKY MUSHROOM CULTIVATION PROCESS Step 4: Prepare the beds by filling paddy straw and spawn as layer by layer. Per each bag 5 layers of spawn is filled.

16. MILKY MUSHROOM CULTIVATION PROCESS Step 5: keep the prepared bags in dark room for 14-20 days for spawn growth. The bags can be arranged in hanging bag system which reduces input cost. Maintain the temperature (25 – 35℃) and humidity (80 - 90%) in dark room for proper development of spawn.

17. MILKY MUSHROOM CULTIVATION PROCESS Step 6: Prepare the soil for casing by adding chalk powder and formaldehyde solution(4%) mix well and rest it for a week.

18. MILKY MUSHROOM CULTIVATION PROCESS Step 7: After 20 days remove the bags from dark room and cut the bag into 2 halves, fill the prepared casing material of 2-3 cm thickness and shift to cropping room. The bags are arranged racks (made of either steel / bamboo / wood), daily watering should be done. Maintain the temperature (25 – 35℃) and humidity (80 - 85%) in cropping room for proper development of mushrooms. Step 8: After 10 days in cropping room, pin heads are developed in beds and 1 st harvest can be obtain at 35 th day of cultivation process.

19. MILKY MUSHROOM CULTIVATION PROCESS Step 9: In 45 to 50 days of cultivation process complete harvest of milky mushrooms can be done.

20. MILKY MUSHROOM CULTIVATION PROCESS Step 10: Harvested mushrooms are packed in a plastic trays each of 200gm and sell in the local market.

21. MILKY MUSHROOM MARKETING AND VALUE ADDITION MARKETING Packed mushrooms of 200gm each can be supplied to local market, supermarkets, restaurants etc., Value addition to milky mushrooms Milky Mushrooms can be dried under sun and those dehydrated mushrooms can be packed and supplied to markets. Milky Mushroom pickles can be made and supplied to local markets. Dried mushroom powder also have demand in market.

22. COST ANALYSIS FOR 100 KG OF SPAWN CULTIVATION Paddy straw required for 1 kg spawn – 8 kg(dry weight) Paddy straw required for 100 kg spawn – 800 kg From 1 kg spawn we can prepare 6 beds (each bed has 5 layers of spawn) From 100 kg spawn we can prepare 600 beds. 1 kg spawn gives yield of 6 – 8 kg mushroom. 100 kg spawn gives yield of 600 – 800 kg mushroom. Cost of 1 kg mushroom – 200rs/- Cost of 700 kg mushroom – 1,40,000rs/-

23. COST ANALYSIS FOR 100 KG OF SPAWN CULTIVATION With 100kg spawn, 600 beds can be prepared. For 100 kg spawn cultivation we require 2 dark rooms/shed (spawn development) and 1 light room (cropping room). Each dark room/shed size is 10*10 sq ft and light room size 20*10 sq ft. In each 10*10 sq ft room we can fit 300 beds. Total area / land required for mushroom cultivation is 6 cents. For 1 cropping it takes 2 months, in a year 5-6 cropping's can be done.

24. COST ANALYSIS FOR 100 KG OF SPAWN CULTIVATION S.NO Material Quantity Total cost(Rs.) 1 Paddy straw 800 kg 3000 2 Spawn 100 kg 12000 3 Formalin 10 lit 1000 4 Chalk powder 60 kg 2000 5 Polyethylene bags and rubber bands 10 kg 2000 6 Red/black soil 1 load 600 7 Bavistin 1 kg 500 8 Plastic trays and covers 3000 covers 3000 9 Nylon plastic ropes for hanging bags (each pack has 5 ropes of 15m length) 20 2000 10 Power utility and Transportation - 3000 11 Labour chargers 2 persons 8000 12 miscellaneous - 900 Total cost 38,000/- Working capital estimates

25. COST ANALYSIS FOR 100 KG OF SPAWN CULTIVATION S.NO Particulars Quantity Amount (Rs.) 1. Chaff cutter 1 10000 2. Humidifier 1 10000 3. Digital temperature and humidity meter 4 2000 4. Manual sprayer 1 1000 5. Plastic drums (1000 lit) 4 4000 6. Tarpaulin cover 4 2000 7. Bamboo/ wooden racks (for 20*10 size room with 5 stages) - 18000 Total Total 47,000 Estimated cost of machinery and equipment

26. COST ANALYSIS OF MILKY MUSHROOM CULTIVATION Particulars Amount (Rs.) Land & site development (on lease) 5000 Building and civil works 1,60,000 Machinery and equipment 47,000 Working capital 38,000 Total 2,50,000 Estimated cost of the project

27. COST ANALYSIS OF MILKY MUSHROOM CULTIVATION PER YEAR Proposed means of finance Total project cost – Rs. 2,50,000 Loan taking from bank @ 9% interest for 1 year time period – Rs. 2,50,000 Interest per month – Rs. 1500 Interest per year – Rs. 18,000 For 1 cropping, mushroom production is 700 kg. Per year 5-6 cropping's can be done. For 5 cropping's in a year total mushroom production is 3500 kg. Total revenue obtained by selling 600kg mushroom @ Rs.200 Per kg (yield for 1 cropping period) – Rs.1,40,000.

28. COST ANALYSIS OF MILKY MUSHROOM CULTIVATION PER YEAR Particular Amount (Rs.) Total expenses for 1 cropping period (working capital + land rent + interest) 44,500 Total revenue obtained for 1 cropping period (by selling mushrooms) 1,40,000 Profit obtained for 1 cropping period = total revenue – total expenses = 1,40,000 – 44500 = 95,500/- Profit obtained per year (for 5 cropping’s) = 95,500*5 = Rs. 4,77,500 Total investment / project cost = Rs. 2,50,000 Total/ Net profit obtained per year = 4,77,500 – 2,50,000 = Rs. 2,27,500/-

29. CONCLUSION In 1 year mushroom cultivation the total investment can be repaid and profit is obtained. In 2 nd year the profit will be – Rs. 4,77,500. If we cultivate for next successful years the profit will increases. If we increase production, more profits will be obtained. By adding value- addition to product like dried milky mushrooms, mushroom pickles and mushroom powder etc., more profits will obtain. A farmer or individual can grow the mushroom at required conditions and they can make profits.

30. OPPORTUNITIES AND LIMITATIONS Opportunities In mushroom cultivation, we get more profits with less investment. The pandemic has also prompted a few experts to look at consumption of mushrooms, known for their immunity-boosting ant-viral properties, with renewed vigor. The main advantage of milky mushroom compare to other mushroom varieties is its shelf life. It can be store up to 1 week in normal room temperatures. No specific skills are required for cultivation of mushroom. Even a farmer or common people can practice this mushroom cultivation. Limitations Green moulds, fungi will attack during cultivation process if not maintain cleanness. Proper maintenance and care should be taken from starting to end of the process. Workers should sanitize themselves while working.

31. DRIED MILKY MUSHROOM AND MILKY MUSHROOM POWDER PRODUCTS MAKING UNIT

32. Dried / Dehydrated mushroom Dried / Dehydrated mushroom are used as an important ingredient in several food formulations including instant soups, Pasta, snack seasonings, casseroles and meat and rice dishes. Mushroom contains 90% moisture at the time of harvesting and are dried to a moisture level down below 10-12%. At a drying temperature of 55-60 °C, the insects and microbes on the mushrooms will be killed in few hours, which gives us the dehydrated final product of lower moisture level with longer shelf-life (up to 6 months). 10 kg fresh milky mushrooms = 1kg dry milky mushroom. From dried mushrooms, mushroom powder can also be made.

33. Drying / Dehydration of milky mushroom Mushroom drying methods Sun drying In this process freshly harvested mushrooms are cleaned with water and cut the mushroom into small pieces by hand or using slicing machines for quick drying. 2. Tray drying / oven drying In this process the harvested mushrooms are cleaned with water and cut into small pieces and place the pieces uniformly in trays and keep it in air dryer or oven at 55 - 60℃ for few hours and remove dried mushrooms and allow it to cool. For commercial purpose, this method of drying is most commonly used.

34. Machinery required for Drying of milky mushroom 1. slicer Used to slice/ cut the mushroom into smaller pieces. Power operated operating capacity – 150 to 200 kg/ hr 2. Tray dryer Used to dry mushroom pieces. Power operated 12 rows / trays Trays capacity 12 – 90 kg

35. MILKY MUSHROOM POWDER Mushroom powder offers the several health benefits such as boost the immune system, promotes heart health, helps to control the blood sugar, improves the antioxidant levels, reduces the fatigue and fight depression and may help to protect from cancer. The mushroom powder is mostly used to provide the thickness to the soups, sauces, bouillons, ready meals, coffee, tea, and other savory products. Mushroom powder is made by grinding the dried mushrooms.

36. Machinery required for milky mushroom powder making Pulverizer Used to grind the dried mushroom slices. Power operated (2 hp) operating capacity 20 - 25 kg/hr.

37. COST ANALYSIS OF DRY MILKY MUSHROOM PRODUCTION AND MILKY MUSHROOM POWDER From 10 kg milky mushroom, 1kg dry milky mushrooms will obtain. To obtain 100 kg dry mushroom, we require 1000 kg milky mushroom. From 1kg dry mushroom, 1kg mushroom powder will obtain. From the production of 100kg dried mushroom, 50 kg dried mushroom is utilized for making mushroom powder. Remaining 50 kg dried mushroom is directly packed and sold in market. For this processing unit, we require a 20*10 ft room and 3 to 4 cents of area.

38. Particulars Amount (Rs.) Land & site development (on lease) 5000 Building and civil works 70,000 Machinery and equipment 1,05,000 Working capital 2,40,000 Total 4,20,000 Estimated cost of the project COST ANALYSIS OF DRY MILKY MUSHROOM PRODUCTION AND MILKY MUSHROOM POWDER

39. S.NO Particulars Quantity Amount (Rs.) 1. slicer 1 20,000 2. Tray dryer 1 60,000 3. Pulveriser 1 22,000 4. Plastic trays and bowls 5-10 3000 Total Total 1,05,000 Estimated cost of machinery and equipment COST ANALYSIS OF DRY MILKY MUSHROOM PRODUCTION AND MILKY MUSHROOM POWDER

40. S.NO Particulars Quantity Amount (Rs.) 1. Power and utility - 10,000 2. Packaging material (transparent food graded zip lock type pouches) 500 no. 2000 3. labour 2 23,000 4. Fresh milky mushroom 1000 kg 2,00,000 5. miscellaneous - 5000 Total Total 2,40,000 Estimated working capital cost per year COST ANALYSIS OF DRY MILKY MUSHROOM PRODUCTION AND MILKY MUSHROOM POWDER

41. Proposed means of finance Total project cost – Rs. 4,20,000 Loan taking from bank @ 9% interest for 1 year time period – Rs. 4,20,000 Interest per month – Rs. 3150 Interest per year – Rs. 37,800 From 1000kg fresh mushroom, we get 100kg dried mushroom. From the 100kg dried mushroom, 50kg dried mushroom is converted to mushroom powder. Cost of 1 kg dry milky mushroom = Rs.1500 Cost of 1 kg milky mushroom powder = Rs. 2500 Total revenue obtained by selling 50kg dry milky mushroom = Rs. 75,000 Total revenue obtained by selling 50kg milky mushroom powder = Rs. 1,25,000 COST ANALYSIS OF DRY MILKY MUSHROOM PRODUCTION AND MILKY MUSHROOM POWDER PER YEAR

42. COST ANALYSIS OF MILKY MUSHROOM CULTIVATION PER YEAR Particular Amount (Rs.) Total expenses for 1 cropping period (working capital + land rent + interest) 44,500 Total revenue obtained for 1 cropping period (by selling mushrooms) 1,40,000 Profit obtained for 1 cropping period = total revenue – total expenses = 1,40,000 – 44500 = 95,500/- Profit obtained per year (for 5 cropping’s) = 95,500*5 = Rs. 4,77,500 Total investment / project cost = Rs. 2,50,000 Total/ Net profit obtained per year = 4,77,500 – 2,50,000 = Rs. 2,27,500/-

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