MUSHROOM FARMING PROJECT

REPORT WITH ECONOMICS FOR A

SMALL SCALE MODEL
BUILDING: 1200 SFT with electricity and water facilities and
Old are new building (doesn’t come under subsidy)
FABRICATION: 75,000/-
Includes 1> 40 no 1.5 inch square/round pipes,
2> 40 no 3/3 inch square plates,
3> 40 no 2 inch square/round pipe cut pieces,
4> Labour charges.
RAW MATERIALS FOR 3 CROPES
1) PADDY STRAWS , SPAWNS AND
MISCELLANEOUS = 20,000/-
2) PLATIC ROPE : 8620 MTS = 35,000/-
3) PLASTIC COVERS : 10,000 BAGS*1rs = 10,000/-
MACHINERIES AND TOOLS REQUIRED
HUMIDIFYING SYSTEM : 25,000/-
Includes :
a) ½ HP motor = 3500/-
b) Mobility sensor device = 4000/-
c) 30no Pipes + 700 small sprinkler’s + collars and elbows +
tags + glues and clamps + installation charges + overhead
tank = 18,000/-

1) Harvesting tools, treys, crates, digital thermometer, packing

and weighing machine and packing covers = 20,000/-
40no insect mesh = 15,000/- (transportations , extra labours ,
installations and burnouts )
Total project cost = 2,00,000/-

Revenue per crop

1200 sqft = 3500bags
500grm production per bag * 3500bags = 1750kg
Wholesale buyback rate from our company 80rs for 1kg
 1750 kg = 1,40,000/-
Bagging cost per crop
Per bagging = 35rs inclusive of all above mentioned
raw material + labour cost + electricity
30rs*3500bags =1,05,000/-
Net profit per crop = revenue per crop – bagging
cost per crop
Net profit per crop / per 45days = 35,000/-
Oyster Mushroom-Expenditure and Economics
Unit size : 200 Kg. Paddy straw/batch of 100 Kg.
Mushrooms / batch
A. Break up details of expenditure: Amount
(Rs.)
I. Capital Cost
a) Thatched shed with wooden platform
(250 sq.ft) 250 50 12500
b) Vessels, heating equipments and
Rocker sprayer-Set 1 4000 4000
 16500
II. Recurring cost (for first batch capitalised)
a) Polythene bags (200 Nos.) 200 3 600
b) Paddy straw (200 Kg.) 200 4 800
c) Spawn 50 bottles 50 14 700
d) Labour charges 20 50 1000
e) Fuel cost-Lump sum 1 600 600
3700
Total Cost 20200
Margin @ 20% 4040
Term Loan amount 16160

B Assumptions
Sl.No. Particulars / Year 1 2 to 5
1 Recurring cost / Years 14800 37000
2 Batches per year-No. 4 10
3 Yield assumption (Kg.) 400 1000
4 Sale Price (Rs. Per Kg) 60

FINANCIAL INDICATORS
Items I Year IIYear III Year IVYear VYear
Expenditure 14800 37000 37740 38495 39265

Income 24000 60000 60000 60000 60000

Net Income 9200 23000 22260 21505 20735

D.F.@ 15% 0.870 0.756 0.658 0.572 0.497

Discounted cost 12876 27972 24833 22019 19515
Discounted Benefits 20880 45360 39480 34320 29820
Net present worth 8004 17388 14647 12301 10305
N.P.V 53773
B.C.R 1.58
I.R.R at 16.5% > 50%
Avg DSCR 4.21 : 1

Repayment Schedule Amount in Rupees

Year Loan Outstanding Interest Net Repayment Net Surplus or
@ 12% income Deficit
Principal Interest
1 16160 1939 9200 1939 7261
2 16160 1939 23000 3232 1939 17829
3 12928 1551 22260 4848 1551 15861
4 8080 970 21505 4848 970 15688
5 3232 388 20735 3232 388 17115