Updated: 3 October 2026
A small oyster unit in a thatched room is the cheapest way in: TNAU's costing puts the capital at ₹37,000 and the break-even near ₹79 per kg when labour is paid. For a seasonal button unit, no costing for a small shed is published, so only the sourced building blocks are shown below, with no profit figure.
Spawn, straw, labour and mushroom prices differ by district and season, and most published costings are old. Treat every rupee figure here as a reference point, ask local suppliers for current rates, and rework the sums with them. For growing steps and the full break-even table see the mushroom farming guide.
Oyster unit of 10 kg a day (TNAU costing)
| Item | Figure (TNAU, year not printed) | Arithmetic |
|---|---|---|
| Capital: thatched house 15 x 25 ft, chaff cutter, boiler, drum, sprayers, biomass stove | ₹37,000 | 30,000 + 2,000 + 2,000 + 1,000 + 1,000 + 1,000 |
| Straw and transport | ₹24,500 | 3.5 tonnes x ₹7,000 |
| Spawn | ₹80,000 | 2,000 bags x ₹40 |
| Polythene for beds and packing | ₹3,375 | 25 kg x ₹135 |
| Labour, one person | ₹1,08,000 | 300 days x ₹360 |
| Other running cost | ₹5,000 | as given |
| Running cost for a year | ₹2,20,875 | 24,500 + 80,000 + 3,375 + 1,08,000 + 5,000 |
| Fixed cost (15% interest, depreciation) | ₹15,250 | 5,550 + 9,000 + 700 |
| Total cost for a year | ₹2,36,125 | 2,20,875 + 15,250 |
| Output | 3,000 kg | 10 kg x 300 days |
| Cost per kg | ₹78.7 | 2,36,125 / 3,000 |
- Per bag: 3,000 kg from 2,000 bags is 1.5 kg a bag, and the cost is about ₹118 a bag (2,36,125 / 2,000).
- If the 3.5 tonnes of straw is dry weight, the unit assumes 3,000 / 3,500 = 86% biological efficiency, below the 100 to 150% TNAU quotes, so its yield is cautious.
- If the family supplies the labour, the cost is 2,36,125 - 1,08,000 = ₹1,28,125, or ₹42.7 per kg (1,28,125 / 3,000).
- TNAU sells at ₹135 a kg: 3,000 x 135 = ₹4,05,000 a year. The spawn price of ₹40 a bag cannot be compared with ICAR-DMR (₹100 per kg) or ICAR-IIHR (₹90 per kg), because the bag weight is not stated.
Milky unit of 10 kg a day (TNAU costing)
- Capital ₹87,000: thatched house ₹20,000, blue polyhouse 20 x 50 ft ₹60,000, and ₹7,000 of small items (20,000 + 60,000 + 7,000).
- Yearly cost ₹2,26,625: running ₹2,04,875 plus fixed ₹21,750. Per kg: 2,26,625 / 3,000 = ₹75.5.
- Income at ₹145 a kg: 3,000 x 145 = ₹4,35,000, so net ₹2,08,375 (4,35,000 - 2,26,625).
Very small units and ready-to-fruit bags
- NHB model, November 2005: an oyster unit making 400 kg a year cost ₹49,790 (land ₹21,470, 300 sq ft growing room ₹15,000, equipment ₹11,900, contingency ₹1,420), with running cost ₹6,830 and sales of 400 x ₹40 = ₹16,000. These are 2005 prices, shown for structure only.
- RTF bag, ICAR-DMR: the PSA page gives a production cost of ₹30 to ₹40 per bag and 600 to 800 g of mushroom. The ICAR-DMR 2020 book gives 300 to 500 g from a 2 kg bag in three flushes. The two sources conflict.
- Bag margin: ICAR-IIHR sells RTF bags at ₹50 (2 kg) and fresh mushroom at ₹150 per kg. At 300 to 500 g that is ₹45 to ₹75 of mushroom per ₹50 bag, a result of -₹5 to +₹25; at 600 to 800 g it is ₹90 to ₹120, or +₹40 to +₹70. Labour, water and packing are not counted, and ₹150 is IIHR's own listed price, not a market rate.
Seasonal button unit: what can be costed
No costing for a small seasonal button shed is published. ICAR-DMR's only worked output is for a 200 tonne a year unit with 8 rooms and 60 TR of cooling, which is commercial scale. These are the sourced pieces:
| Item | Figure | Source and arithmetic |
|---|---|---|
| Yield per tonne of compost | 180 to 230 kg | 18 to 23 kg per 100 kg x 10; ICAR-DMR strains in environment-controlled units, so seasonal sheds may give less |
| Spawn per tonne of compost | ₹1,000 | 1% of wet weight = 10 kg x ₹100 per kg (ICAR-DMR rate, 2026 page) |
| Gross sales per tonne of compost | ₹27,000 to ₹34,500 | 180 x 150 and 230 x 150, at ICAR-IIHR's listed ₹150 per kg (2023) |
| Compost, casing soil, labour, ice or power, packing | No sourced price | ICAR-DMR's compost supplier list shows no rates |
| Low-cost mushroom house norm | ₹2 lakh per 200 sq ft | MIDH Operational Guidelines 2025 |
ICAR-DMR prepares a costed Techno Economic Feasibility Report (TEFR) on payment: ₹2,350 for up to 20 tonnes a year to ₹29,250 for 501 tonnes and above, including 18% GST. It is prepared only after full payment, may take 30 days, and the fee is not refundable.
Where to buy spawn
| Source | Rate | Booking and collection | Contact |
|---|---|---|---|
| ICAR-DMR, Chambaghat, Solan | ₹100 per kg; master spawn ₹500 per 250 g bottle | Book 20 days ahead with 50% advance (demand draft or online); two months for some special types. Collect in person, no post or courier | Dr Anil Kumar 9568233711; Lucky Rana 8627966834 |
| ICAR-IIHR, Bengaluru | Most oyster ₹90 per kg; king oyster and shiitake ₹100 (rates effective 1 June 2023) | Order 30 days ahead, cash only, collect in person | 080-23086100; 07090949605 |
| Other government labs | No rates listed | Listed on the ICAR-DMR site: Nauni (HP), Hisar, Murthal, Palampur, Jorhat, Jabalpur, Hoshiarpur and others | Only KVK Ujwa (Najafgarh, Delhi) has a contact: 011-65638199, [email protected] |
Public labs supply only about 10% of commercial spawn in India; private units supply the rest (2017 review). Ask for the date of making and use fresh spawn. For loans, see the EMI calculator; for training and subsidy, see training and subsidy; for which type to grow, see mushroom types.
Sources
- TNAU Crop Production Guide, Mushroom Cultivation (unit economics for oyster, milky and spawn; year not printed)
- National Horticulture Board, model bankable project on oyster mushroom (AFC, November 2005)
- ICAR-DMR Solan, spawn supply page
- ICAR-DMR Solan, government spawn suppliers list
- ICAR-DMR Solan, rates of products and technologies (page shows update of 28 September 2026)
- ICAR-DMR Solan, Techno Economic Feasibility Reports (TEFR) and fees
- ICAR-DMR Solan, Technologies Developed by ICAR-DMR for Commercial Use (2020 book)
- ICAR-DMR Solan, rough estimate output for a 200 tonne a year button mushroom unit
- ICAR-DMR Solan, compost suppliers (government)
- ICAR-IIHR Bengaluru, rates of mushroom spawn, RTF bags and fresh mushroom (page shows rates effective 1 June 2023)
- Principal Scientific Adviser, livelihood page on ICAR-DMR ready-to-fruit bags (2026)
- MIDH Operational Guidelines 2025 (dated 31.12.2024), Annexure V, low cost mushroom unit norm
- ICAR, Mushroom Research journal, Status of mushroom production in India (spawn supply)