This document is a project proposal for establishing an oyster mushroom spawn production unit. It provides details on the objectives, location, budget, economic analysis, and action plan for the unit. It estimates that the unit will cost Rs. 535,387 to establish, will produce 3,000 spawn packets per month, and will earn a net monthly income of approximately Rs. 21,000. It outlines the qualifications of the entrepreneurs, facilities and equipment required, and concludes that mushroom cultivation can provide additional income and employment opportunities in rural areas.

1. Establishment of Oyster Mushroom
Spawn production unit
Project Proposal on,
Mushroom Cultivation (ELP-453)

2. Course Name: Mushroom Cultivation
Course No. ELP-453
Semester 8th Group: 1 Year: 2021
Name of the Participants:
1. Aritra Barat (Ag-01)
2. Arnab Paul (Ag-02)
3. Arpan Samanta (Ag-03)
4. Rohan Bera (Ag-04)
5. Srijan Samanta (Ag-05)
6. Mallika Koley (Ag-06)
7. Swati Ghosh (Ag-09)
Bidhan Chandra Krishi Viswavidyalaya
Mohanpur, Nadia, West Bengal

3. Submitted to:
Department of Food Processing industries and Horticulture, Government of West
Bengal, GN Block, Sector V, Bidhannagar, Kolkata, West Bengal 700091
Project Proposal on,

4. Project Summary
Name of the Project: Project proposal for Mushroom Spawn Production Unit
Project site: Kotulpur, Bankura, Pin: 722141, West Bengal
Project economic period: 10 years
Estimated Project Cost: Rs. 535387.00/-
Net Income / month: About Rs. 21000.00/-
Implementing Agency: Department of Food Processing industries and Horticulture,
Government of West Bengal
Technical Support: Bidhan Chandra Krishi Viswavidyalaya, Mohanpur, Nadia, 741252
Project Scheme: Centrally sponsored Mission for Integrated Development of
Horticulture (MIDH)
(Implementation under Rashtriya Krishi Vikas Yojana )

5. Background of Entrepreneurs
 There are 7 members in the business. We all are graduate in Agricultural
Science. We also have a hands-on experience on mushroom cultivation & spawn
production.
 Qualification: B. Sc. Agriculture (Hons.)
 Certificate from Department of Plant Pathology, BCKV, Mohanpur on
Mushroom spawn production technology.

6. Introduction
Mushrooms have been an integral component of the evolution of
Indian agriculture from being conventional and non-conventional to a
component modernized business sector.
Mushroom cultivation as an upcoming agribusiness gaining
importance in the rural areas as well as urban areas in India among
youths, women, farmers and common people.
Now-a-days, mushroom is becoming more preferable to health
conscious people because of its high nutritional value and unique taste.
Oyster Mushroom is commonly known as ‘Dhingri’ in India.

7. Importance of Oyster Mushroom

8. Advantages to grow Oyster mushroom
 It has advantages to grow on wide range of cellulosic agricultural wastes (paddy
straw is the best substrate).
 It possesses highest bioconversion ability (more than 60%)
 It is not exigent in its temperature requirement; 20ºC to 30ºC
 The growing season is longer i.e. 8 months in a year.
 Low cost of production and most efficient use of space.
 Cultivation technology is simple and growth rate is higher.

9. IMPORTANCE OF SPAWN PRODUCTION OF
OYSTER MUSHROOM
Non-availability of quality spawn is the major constraint in
mushroom production. To increase the production of mushroom and its
availability to common people, establishment of more spawn production unit
are the present day demand.
 Good quality spawn conforms to –
i) High yield potential,
ii) Absence of contaminants,
iii) Better economic benefit.
iv) High quality mushroom production.

10. Social and Economic Impact
Local people and farmers can buy quality spawn and grow mushroom
for an additional income.
It can encourage village women as they can easily grow mushroom and
it can be a good subsidiary income source for them.
It can also encourage many people, especially unemployed youth, to
grow as an entrepreneur.

11. Objectives
To produce 120 spawn packets per day i.e., 3000 packets of spawn
assuming 25 working days per month.
To earn profit at low cost of maintenance.
To increase the profit by economic utilization of raw materials and other
cost.
To supply good quality Spawn to the growers at suitable price.

12. Steps for Spawn Production

13. Project Details
o Scope of the project:
I. Knowledge gain on man power requirement and engagement.
II. Profitability achieved on the production processes of different cultivated
mushroom spawn.
III. Knowledge acquired on packing, labelling and storing facility of spawn at
production site and delivery point.
IV. Acquired expertise on spawn marketing channel and sale point’s determination by
market survey and market analysis.
V. Knowledge gained on the preparation of budget estimate for spawn production
unit.
VI. Be acquired with risk factors analysis and managerial duty.

14. I. For initial start of mushroom spawn unit five chambered building is suitable. It
comprises of:
1. Room 1 – Inoculation room (120 s.ft)
2. Room 2- Commercial spawn incubation room (90 s.ft)
3. Room 3- Office room cum media preparation room with BOD incubator (120 s.ft)
4. Room 4- Store room (100 s.ft)
5. Room 5- Wash room (90 s.ft)
Front corridor space – used for picketing works sterilization, boiling and mixing etc.
works. (100 s.ft)
II. Equipment and Machineries: Autoclave, Laminar Air Flow, Refrigerator, BOD
incubator, Gas Stove, Weighing Balance, Hot air oven, Pressure cooker, hot plate and
pH meter.
cont.
o Requirements for spawn production:

15. III. Glass wares and Chemicals: Conical Flasks, Beaker, plastic basket/ wire cage, antibacterial
antibiotic, Calcium Carbonate, Readymade Potato Dextrose Agar medium, Disinfectants,Spirit
Lamp.
IV. Other ingredients: Rubber bands, Poly-propylene packet, non absorbent Cotton, Gloves,
Masks, LPG, Grains, plastic sheet (8’x5’).
V. Furniture: Racks for spawn storage, Tables, Chair, Almirah, clock, tool.
VI. Tempterature of 20-30ºC and relative humidity of 75-80% is suitable.

16. Action Plan
I. The project is set up by personal fund of Rs.135000 and rest as a loan from
State Bank of India, Kotulpur AD Branch, Bankura, 722141.
II. The construction of mushroom spawn production unit and soaking tank will
be completed within three months.
III. Purchase of equipments, machineries, furniture are to be completed as soon
as after completion of the unit.
IV. Production will be started immediately after the set-up of unit and raw
materials and other inputs must be bought within next 10 days.

17. Name of the Applicant: Aritra Barat
Address: Kotulpur, Bankura, Pin code-722101
Project Economic period: 10 years

18. Estimated Budget
(According to the present rate)
Non-Recurring Costs (Fixed Cost):
Sl. No. Particulars Quantity Rate Cost
1. Spawn production unit 600 sq. ft. 300/ sq. ft. 180000
2. Land 150000
3. Autoclave 1 48000 48000
4. Refrigerator 1 20000 20000
5. UV light 1 1450 1450
6. B.O.D. Incubator 1 40000 40000
7. Pressure Cooker 1 (22 L) 6000 6000
8 LPG Oven 1 2500 2500
9. Gas cylinder Double set 2500 2500
10. Measuring cylinder 2 400 800
11. Weighing Balance 1 1200 1200
12. Inoculation Needle 2 400 800
13. Wire Basket 6 400 2400
14. Electric – Hot Plate 1 1800 1800
15.
Big Dekchi, Small Dekchi, Dekchi with
cover, Big Spoon
One Set 1000 1000

19. 16.
Furniture
Iron Rack,
Table small,
Table long,
Chair etc.
3
2
1
1
4500
2000
4000
1000
13500
4000
4000
1000
17. Almirah & Clock One 8000 8000
18. Funnel 2 50 100
19 Sprayer 1 500 500
20. Spirit Lamp 1 100 100
21. Spirit jar (Inoculation Room) 1 150 150
22. Plastic Tray 2 nos. 125 250
23. Knife 2 nos. 50 100
24. Glass Marking Pen 2 nos. 20 40
25. Spatula 1 50 50
26. Forceps 2 50 100
27. Culture Tube 650 14 9100
28. Beaker (500 ml) 2 300 600
29. Conical Flask 5 200 1000
30. pH Paper Strip 3 50 150
TOTAL 501190/-

20. Recurring Expenditure for one month (Spawn Lab.):
Sl. No. Particulars No./ Qty./ Size Rate (Rs.) Amount (Rs.)
1. Polypropylene 3000 x 2 = 6000 0.50 3000
2.
Non-Absorbent cotton
Bundle used for 3000 packet = 9
packet
Bundle will be used for culture tube
plugging = 3 packet
12 packets. 90 1080
3. Rice grain (3000 packets x 200 g) 600 Kg. 15 9000
4.
Calcium Carbonate @ 20g/Kg x 600
Kg.
12 Kg. 10 120
5. Brown Paper 1 Kg. 150 150
6. Rubber band 1 Kg. 180 180
7.
Antibacterial Antibiotics (Paraxin /
Ambistryn)
6 nos. 12 72
8. Instant PDA medium 500 gm 6600/kg 3300
Cont.

21. Unit Cost :
Recurring Cost + Non-Recurring Cost = (34197+501190)/-
= Rs. 535387/-
9. Spirit 500 ml 350 175
10. Polythene Sheet (6ft x 3 ft) 1 no. 100 100
11. Distilled Water 8 lit. 15 120
12. Electricity + Gas 800
13. Formalin 100
14. Labour
2/ day x 25 = 50
Man-days
300 15000
15. Misc. 1000
TOTAL 34197/-

22. Economics of Spawn Production
Income From Sale (+) +62700.00
Production Expenditure (-)
Depreciation Cost 10% /year = 50119
Depreciation Cost 10% / Month (-)
-34197.00
-4176.00
Assuming 75% loan approval of estimated total cost.
Loan amount (535387 x 0.75) = 401540
Interest 10% per year = (401540 x 10%) = 40154
Interest 10% of loan/ month = (40154/12) = 3346 -3346.00
Net Return 20981.00/-
 Production of Spawn Packets = 120 x 25 = 3000
 Assuming 5% contamination = 150
 Actual Production/ month = (3000-150) = 2850
 Selling price = 22 rupees/packet
 Gross Return = Rs. 62700/-
♦ Net Income/ month:

23. • Cost of Spawn per bag: (34197+4176+3346)/2850 = 41719/2850 Rupees
= 14.64 Rupees
*Production cost may be reduced using liquid culture special techniques.

24. Marketing strategy
 Local State Co-operative Societies
 NGOs/Farmer’s Club/SHG group
 Individual growers
 Collaboration with private farm
 Online advertisement in various social media
 Sufal Bangla Project

25. Contenders of the Entrepreneur
As far as our case study, there is hardly any competitor. In this
area, no such spawn production unit is available. So, the farmers will be
benefitted by collecting good quality spawn regularly from our farm and
then it will be very profitable for us also.

26. Risk Assessment
Risk Identified Action Proposed
a. Hike in prices of raw materials, non-
availability of power, water etc.
b. Contamination, mushroom disease, pest
infestation.
c. Extreme climate change like heavy rains,
high temperature.
d. Storage problem.
e. Transport Problem.
a. Appropriate measure would be taken to
stabilize the production cost.
b. Precautionary measure will be taken for
avoiding contamination and pest control.
c. Find alternate source or substitute with
available materials.
d. Storage containers, cold room etc.
e. Hire of vehicle for timely disposal of
product to customer in non-availability of
transport.

27. † Sustainable knowledge development, employment generation and
entrepreneurship development.
† Involvement of Women Self Help Group (SHG) for entrepreneurship
development.
† Expansion of mushroom cultivation through easy access of spawn.
† Indirect dietary improvement through mushroom consumption and
nutritional benefit.
Outcome of the project

28. Permission, Taxes and Laws
† Permission from municipal board is not required as the unit is away
from municipal area.
† Tax is not required as it is an agricultural product and is sold within the
local area.
† License from FSSAI (Food Safety and Standards Authority of India).

29. a. Expertise gained on the development/ procurement of good Pleurotus sajor
caju mother culture:
i. Mother spawn can be prepared by inoculating pure culture to sterilized wheat or other
type of grains in bottle.
ii. Pure culture of any mushroom can be made using part of tissue from its fruit-body or
from its spores.
b. Expertise acquired in setting up of temperature and humidity controlled
mushroom cultivation unit:
i) Incubation time & temperature, time for colonization and temperature & humidity at
which spawn can be stored is different for different mushrooms.
ii) Proper maintenance of temperature & humidity is very essential.
cont.

30. c. Expertise acquired on the materials required for mushroom cultivation:
i. All equipment has to be sterilized well before use.
ii. Proper handling of equipment can increase their shelf life.
d. Knowledge gained on manpower requirement and engagement and
handling:
i. Skilled men are required for greater revenue.
ii. Proper guide can use the manpower in an optimum way. So, management of the
manpower is also very important.
e. Technology adopted during cultivation of Pleurotus sajor caju mushroom:
i. Quality spawn is essential for higher yield.
ii. Substrate of mushroom cultivation has to be sterilized in a proper way.

31. Precautions to be followed
 Always keep the inoculation chamber and its surrounding very clean
using disinfectants.
 Mother spawn shouldn’t be used beyond two generation.
 Inoculation should be done near the spirit lamp flame to avoid
contamination.
 All bottles must be labeled with date of inoculation, name, species,
variety to know age and type of spawn.

32.  Storing facility at production site
and during transportation
 Proper refrigeration of the spawn is required. For this purpose, a big sized
refrigerator is present at the laboratory. The optimum temperature for storage
is 4°C.
 We may store the spawn in their refrigerator or in cool places away from dust.
 We may transport spawn in refrigerated van or during night when temperature
doesn’t above 32ºC.

33. Development of Entrepreneurial and
Executional skill
 Entrepreneurship is an individual endeavor to convert ideas to a fruitful action. This
includes creativity, innovation, risk taking as well as ability to plan and manage a
project to achieve the objective.
 Development of social skills is required for market surveillance and market analysis for
penetrating in the market.
 Acquired skills of leadership for management of workers’ duty and entrepreneur.
 Developed prediction skills of demand and supply chain of current market.
 Developed skills in quality control assurance of the products.
 Adopted skills of handling different equipment, processing skills, packaging and
labeling.

34.  Signature and Name of the applicant
------------------------------
Name: Aritra Barat
Company Name: SeptaCrew Mushroom Seed Farm
License No: 1648295468875697
Stamp:
Date:30/06/2021

35. Conclusion
We can conclude that there is ample scope for mushroom industry to thrive
successfully and can become a lucrative business for the unemployed rural youth,
housewives and an additional income source for the farmer. Thus mushroom cultivation
activities can play important role in supporting the local economy by contributing to
subsistence food security, nutrition and medicine, generating additional employment and
income. But the main reason or weakness in the development of flourishing mushroom
industry is non-availability of quality spawn. Thus, by establishing a spawn production
unit we can play an important role regarding this. We hope that the advocation of
mushroom farming will become a very important cottage industry activity in the
integrated rural development programme.

36. Acknowledgement
I would like to thank Prof. Amitava Basu, Department of Plant Pathology,
BCKV, for giving us such an opportunity to work on such a nice project. I also express
my heartfelt gratitude to Prof. Amitava Biswas, department of Ag. Extension, BCKV;
Prof. Sujit Kumar Ray & Prof. Rishu Sharma, department of Plant Pathology, BCKV for
catering the entire guide I needed and being so helpful and cheering. I would also pay
my gratitude to Prof. S. B. Goswami, Dean, Faculty of Agriculture, BCKV, to introduce
such an interesting curriculum in Undergraduate course, which influences us to get
proper knowledge about the Entrepreneurship utilizing several sustainable techniques
for better profit. Heartiest thanks to all my group members for their active participation
while doing this project.