This document summarizes the costs of establishing and operating a 100kg per day button mushroom production facility. The total initial investment cost is estimated to be 20 lakhs rupees, including land procurement, construction of compost and production facilities, and machinery. Recurring costs include labor, raw materials, energy, and interest/depreciation on assets. The total annual production cost is estimated to be 11.1 lakhs. With an estimated annual sale of 42 lakhs rupees by selling 30,000kg of mushrooms, the projected net income is 30.9 lakhs. The benefit-cost ratio of 3.81 indicates that for every 1 rupee spent, 2.81 rupe

1. COST OF ECONOMICS FOR BUTTON
MUSHROOM PRODUCTION
100kg/day
SHIJIN RAVI C
2017002143
AC AND RI MADURAI CAMPUS,TNAU

2. 1.ECONOMICS OF PROJECT
SL NO ITEM IN LAKHS
A LAND PROCUREMENT OF DEVELOPMENT 3.00
B COMPOST UNIT( construction cost)
1 Compost yard @ rupees50 /sq ft 0.80
2 Pasteurization tunnel @ rupees400/sq ft 0.42
3 Boiler room/shed @ rupees200/sq ft 0.20
4 Water tank 10000L capacity @ rupees 200/sq ft 0.20
TOTAL B 1.62

3. SL
NO
ITEM IN LAKHS
C PRODUCTION FACILITY
1 5 cropping rooms including insulation @ rupees 400/sq ft 5.20
2 Corridor in growing room @ rupees 100/sq ft 0.31
3 Packing room, office@ rupees 300/sq ft 0.45
TOTAL C 5.96

4. SL
NO
ITEM IN LAKHS
D COST OF MACHINERY
1 20t chilling plant in all aspects including AHU’s 4 no’s 6.00
2 Boiler 150kg steam generation capacity 0.70
3 Centrifugal blower along with ducting 0.30
4 Steel racks in growing rooms and iron grating in tunnel 2.00
5 Electric and other installation 0.50
6 Water pipe and fittings 0.30
7 Mis equipment like sprayers, fork harvesting trays etc 0.15
TOTAL D 9.95

5. E TOTAL COST (A+B+C+D) 2.00+1.62+
5.96+9.95
=19.53
~20L

6. 2.RECURRING COST
SL NO ITEM IN LAKHS
F Total man power ;4 labour @4000/month 1.92
g Expenses incur on raw materials and energy
1 Straw 65t @rupees 3000/t 1.95
2 Poultry manure 35t @450/t 0.15
3 Casing soil procurement its treatment @ 50 m3 @ rupees 100/m3 0.05
4 Spawn 10 qts @ rupees 5000/qt 0,50
5 polybag 0.30
6 Energy and fuel 1.50
7 Gypsum ,urea, pesticides etc 0.30
TOTAL 4.75

7. 3.INTEREST AND DEPRECIATION
SL NO ITEM INTREST AND DEPRECIATION
IN lakhs
1 ON LAND
15% interest 0.45
2 ON BUILDING
5% Depreciation 1.50
15% Interest
3 ON MACHINERY
10% depreciation 2.48
15% interest
TOTAL 4.43

8. 4.COST OF PRODUCTION
SL NO ITEM IN LAKHS
1 Raw material 4.75
2 Wages and salary 1.92
3 Interest and depreciation 4,43
TOTAL 11.1

9. 5.COST BENEFIT ANALYSIS
SL NO ITEM IN LAKHS
1 Cost of production 11.1
2 Selling of 30000kg @ rupees 140/kg 42.00
NET INCOME 30.9
BCR = GROSS INCOME/COST OF PRODUCTION
= 42.0/11.1
= 3.81
Inference,
For every 1 rupees farmer spend he gets additional returns of rupees 2.81 as a profit.The project is thus feasible.

10. REFERENCES
1. Anonymous. Horticulture Data Base 2015, National Horticulture Board, New Delhi, 2014.
2. Kangotra A, Chauhan SK. Economic viability of button mushroom cultivation in Himachal Pradesh,
India. Indian Journal of Agricultural Research. 2014; 48:134-139

11. THANK YOU