Schoolboy starts mushroom farming at 17; reaches Rs 18 lakh annual turnover in 4 years

Studies did not interest Prabhu Ranjan since childhood. However, he never failed in any grade. By the time he was in tenth, he realised he had to find a source of income for himself because securing high grades and getting a job was not his cup of tea.

“I always thought of doing a business, but most required heavy investments. So I started looking for a low-investment, high-return business that could be started from home instead of investing in real estate,” says Prabhu, who lives in Naubatpur in Bihar’s Patna district.

Zeroing in on mushroom entrepreneurship

He researched online and many YouTube videos led him to mushroom farming. “My parents and grandparents cultivate wheat and rice. I realised I could utilize the paddy and wheat straw for mushroom cultivation. It was readily available, cutting my investment,” says Prabhu.

 “A room of 10 feet by 20 feet once housed our borewell to access groundwater. But it had dried up and the place was lying unutilized. I decided to use it for button mushroom cultivation,” says Prabhu, now 21.

The market for button mushrooms in India is experiencing substantial growth, driven by increasing health awareness, the rise of veganism, and the versatility of button mushrooms in various cuisines. 

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The button mushroom market was valued at 1.32 million dollars in 2024 and is projected to grow at a CAGR of 11.1 percent from 2025 to 2030, according to Grand View Research.

Prabhu began their cultivation in November 2021. 

He made his own racks using locally available bamboo and filled them with paddy straw. “At that time, the paddy had just been harvested and I used it.”

He purchased spawn from a supplier in Gaya, Bihar, paying Rs 5,000 for spawns and putting up 200 bags of button mushrooms. "I put them in November and they began yielding mushrooms after 30 days. I began harvesting in December,” says Prabhu, who has now graduated in English (Hons).

Success leading to expansion

The young entrepreneur harvested 300 kg of button mushrooms (about 1.5 kg per bag) and sold them in the local Naubatpur mandi. “I sold them at an average of Rs 150 per kg, earning Rs 45,000,” he says.

Though the production was lower than the average of 2 kg, Prabu was happy at a profit of Rs 30,000 on the first attempt. 

Mushrooms can be cultivated in two ways – seasonally or throughout the year in cold chambers. In India, cold chambers for mushroom farming are not very popular yet due to high investments. However, this method gives yields throughout the year due to controlled environmental parameters like temperature and humidity.

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

“I grew mushrooms only seasonally for three years as I wanted to learn everything before making a high investment. Any problems can be managed better on a small scale than in a commercial setup,” says the mushroom entrepreneur. 

“I kept only 200 bags for the first three years till 2023 to gain experience, earning only about Rs 50,000 per season,” he says.

In August 2024, Prabhu started an air-conditioned unit of 18 feet X 40 feet. It can accommodate 1500 bags at a time. 

He now orders spawn online from Delhi, paying Rs 120 to 150 per packet. “One spawn packet can prepare 10 mushroom bags, each of which yields around 2 kg of button mushrooms,” he explains.

Also Read: With Rs150 investment, how this housewife built a mushroom business earning Rs3 lakh monthly

Pipe method to cut costs

He makes compost for mushroom bags using the pipe method, which is cost-effective, and ideal for small to medium-sized mushroom farmers. “In contrast, the tunnel bunker method requires high investment,” he says.

The pipe method, also known as the zero energy polytunnel (ZEPT) method, involves creating a compost pile within perforated PVC pipes. This allows for natural aeration and moisture management. 

“The compost is ready for filling the mushroom bags in 20 to 25 days, saving time and costs. The traditional manual method where materials are mixed, wetted, and stacked in piles, requires about 45 days,” Prabhu explains.

The cold unit allows him to harvest button mushrooms four times a year. “One cycle with 1500 bags yields 3000 kg. Annually, I sell 12,000 kg of mushroom,” he says.

Prabhu gets an average rate of Rs 150 per kg, clocking a turnover of Rs 18 lakh annually. “After deducting expenses on spawns, labour, electricity and other costs, each cycle gives me a profit of around Rs2.5 lakh. So my annual profit is Rs10 lakh,” says Prabhu, who now sends the mushroom to Patna.

He hires people for harvesting, casing, and packaging daily as per requirements. “For mushroom farming or any business, the biggest attribute is patience. There are no shortcuts,” says Prabhu.

At just 21, Prabhu is already a trainer with a large number of students. “Some of them come to Naubatpur for training, while some learn online. I am now experimenting with polyhouse farming and will take it up commercially if I succeed,” he adds.

(Rashmi Pratap is a Mumbai-based journalist specialising in financial, business and socio-economic reporting) 

Also Read: Five women mushroom farmers who started from a room and now earn lakhs

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