From a garage to Rs 17 lakh a month: How this farmer built a mushroom business

After completing his graduation, when Pramod Tripathi began looking for a job, he couldn’t find one. He then helped run his family’s non-profit school, which his father had established for children in the village. The school continues to operate today up to Class 10, but it did not generate enough income to sustain the family.

In 2019, his father helped him set up a brick kiln, enabling Pramod to become financially independent. But bad luck followed, and incessant rains washed away thousands of unbaked bricks at the kiln in their village in Bhadoi, Uttar Pradesh.

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Soon after, Pramod contracted COVID-19, leaving him uncertain about his future. During this difficult period, Pramod visited the Krishi Vigyan Kendra (KVK) in Bhadohi. There, he met an agricultural scientist who introduced him to the potential of button mushroom farming.

“At the time, button mushroom farming was almost non-existent in the district. Most mushrooms were transported from cities like Lucknow. The gap in local production convinced me to try my hand at the crop,” Pramod tells 30Stades.

The garage experiment

He decided to minimise the risk by growing mushrooms in the family garage. “In the winter of 2020, I set up a mushroom cultivation area inside the garage. Using bamboo frames sourced from the village, I created racks for mushroom bags,” he says.

He prepared compost using wheat straw (bhusa) and other materials, a process that requires careful mixing to prevent contamination. “For the first batch, I bought 120 kg of mushroom spawn from a supplier in Delhi at Rs 150 per kg. The investment was Rs 18,000 in spawns, and I procured wheat straw from my family farm," he says. 

"I prepared around 1,400 to 1,500 mushroom bags. The results were encouraging. During that winter, I harvested nearly two tonnes of button mushrooms, earning Rs 2 lakh," Pramod says.

“I sold the harvest in local mandis at around Rs 100 per kg since rates are lower in the winter. I earned Rs 2 lakh and not only recovered the initial investment but also made a big profit,” he says.

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Upgrading to year-round production

Encouraged by the results, Pramod decided to improve the infrastructure. For his second attempt, he converted his wheat straw storage room into an insulated, air-conditioned facility measuring 44 feet by 12 feet (528 sq ft).

The air conditioner allowed him to control temperature and humidity, enabling year-round cultivation instead of only winter production. “In March 2021, I filled the new facility with another 1,400 to 1,500 mushroom bags. This time I purchased spawn from Lucknow at Rs 130 per kg,” he says.

Once again, the harvest reached two tonnes, but this time market conditions were far better. 

“I sold the produce at Rs 250 per kg as it was summer. This significantly improved my earnings,” Pramod says.

Tunnel bunker method for mushroom compost

Seeing the success of the venture, Pramod decided to expand further. He took a loan from a bank, and by September 2021, he had built three new mushroom-growing rooms using PUF panels, which provide better insulation and controlled environments.

Also Read: Odisha farmer builds low-cost mushroom unit; clocks Rs 2 lakh monthly

“Around the same time, I also set up my compost production unit, since compost quality plays a crucial role in mushroom yield,” he says.

Today, he prepares the compost using the tunnel bunker process, which is more expensive but significantly reduces contamination and improves productivity, Pramod says.

The tunnel bunker process is a mechanised method for producing high-quality mushroom compost. It involves controlled fermentation followed by pasteurisation inside aerated concrete tunnels. 

“This turns raw materials like straw, manure, and gypsum into a nutrient-rich substrate in around eight to 12 days and results in higher mushroom yields,” the agripreneur says.

With this system, Pramod now harvests around 2.2 to 2.5 kg of mushrooms from a 10 kg compost bag, a higher yield compared to 1.5 to 2 kg in traditional methods.

Also Read: Retired nurse starts mushroom farming; earns Rs5 lakh from 600 sq ft in first year

Building a large mushroom facility

Each of his mushroom-growing rooms measures 16 x 40 feet, with the capacity to produce between 2 and 5 tonnes of mushrooms per cycle. In 2022, he added two more rooms, bringing the total number to five growing chambers. Alongside these, his compost production facility occupies nearly 2,000 sq ft.

From these units, he now produces around 10 tonnes of mushrooms every month.

“The produce sells at an average annual price of about Rs 170 per kg, though prices can go up to Rs 280 per kg during summer when supply drops and demand increases,” Pramod says. 

This translates into a monthly turnover of around Rs 17 lakh, though he also earns from the sale of mushroom bags at Rs 110 per bag.

Profit Margins and additional income streams

The cost of producing a mushroom bag is around Rs 90, while the average price is Rs 170. “So the profit margin is about 50 percent,” he adds.

In addition to selling fresh mushrooms, Pramod has created another revenue stream by supplying inputs to other growers. He now prepares compost and mushroom-growing bags for farmers interested in entering the business. 

“I sell the compost at Rs 11 per kg, while ready-to-use mushroom bags cost about Rs 110 each. Every month, I sell around 30 to 35 tonnes of compost and mushroom bags to farmers,” he says.

Today, nearly 80 percent of Pramod’s mushrooms are sold directly from his farm, helping him secure better prices and reduce dependence on intermediaries. “I don’t have to go to mandi with my produce,” he says.

What began as an experiment in a small garage has grown into a thriving agribusiness. Beyond generating a steady income for his family, Pramod’s venture is also helping introduce mushroom cultivation to farmers in and around Bhadohi.

(Riya Singh is a Ranchi-based journalist who writes on environment, farming, sustainability, startups, & women empowerment).

Also Read: From unsold packets to Rs 5.5 lakh monthly revenue, how this man built a mushroom business

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