Professional Documents
Culture Documents
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.A Projed Rqort Prqued By;
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Sprout Consultingthe prcjcct report under the scheme
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ANNEXURE trl
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TITLE PAGE Nd.
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. 1. ApplicationtoNHM. t
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of projectbasedproposalby
sectorFormatfor submission
2 . Private
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privateentrepreneursunderNHM . 2
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of promoters.
) 3. Briefbackground
1
I q. Management. 4B
)
5 . D a t eo f i n c o r p o r a t i o na n d r e l a v a n tl a w . 49
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1 6 . D e t a i lo f c o s t o f p l a n t & m a c h i n e r y/ e q u i p m e n t s u p p o r t e db y
- pluotErtion. 50
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l and costduly 55 certified.
of the Buildingconstruction
7. Details
t of raw materialnameof the clusteranddistrictto be
8. Availability
' 60
covered.
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3 linkagewith farmers.
9. Background 6t
, 10.Forwardlinkage,tieup madefor sale. 62
.
i tt. swor Analysis 63
3
letterDPRassubmittedto
reportcopyof sanction
3 12.Bankappraisal
3;*rank. 64
r.U13.lmplementationschedule 47
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TABLE OF CONTENT
l.l OBJECTIVE 6
B
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2 PROJECTPROFILEOF KIRAN AGRO FARM 7
J INTRODUCTION I
4 BACKGROUND ll
8.1 Storage 3l
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8.2 Packaging& Transportation 3l
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8.3 Marketing 3l
9 FORTECHNOLOGY
SOURCES 32
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l0 ECONOMICSOFTHE PROJECT JJ
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KiranAgro Park, Bhilai, Chhattisgarh
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LIST OF TABLES
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I ProjectProfile of Kiran Agro park
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) World Productionof Mushroom(Metric Tons)
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3 Importercourfriesof Mushnoom 24
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QuantityAnd ValueOf FreshMushrooms
Country-Wise
ExportedFromIndiaDuring2007-2010
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)
LIST OFFIGIJRES:
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9 PROJECTEDBALANCE S}IEET 42
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* t2 CASHFLOW STATEMENT
PROJECTED 45
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P l3 FINA}{CIAL BENCHMARKS_ RATIO ANALYSIS 46
? l4 PROJECTIMPLEMENTATION SCTIEDULE 47
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TrN NO. 22443304530 13 0788-2290179
d,i PH. 98269-44944
Kiram ro Park 93298-44944
29/7, Radhika Nagar,Towards Nehru Nagar to Kosa Nala Bridge, Bhilai {e.G.)
I' To,
T TheDeputyDirector,
t NationalHorticultureMission
T Distt.- Durg(C.G.)
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Sub.: To submittingprojectreportfor subsidyunderNHM.
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DearSir,
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I amgoingto starttheprojectfor OyesterMushroomCultivation,Spawn
I
& TrainingCentreat Shivpuri(JAMUL),Bhilai, Distt. - Durg.Wewill produce
I
theOyesterMushroom100kg-l25kgperday.Approx,givingtrainingto women
& farmersin our Districtsvillages& to makeavailablespawnin low cost.The
totalcostof ourprojectis Rs.50,59,482.00.
I am applyingfor subsidyasunder.NHMguidelineswhich is 50%of
t\ totalprojectcostor maximumRs.25,00,0001- for privatesector.
Sopleaseprovideme subsidyunderNHM.
Thanks
Enclose-
Yoursfaithfully,
I. DPR
2 . C ertificate of Registration
3. Plant& MachineryQuotation
Devesh Mogre
4. Estimatefor Building & Civil works
5. Bank appraisal& sanctionletter.
IflRAHAGRoFAltS.
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J PRIVATE
SECTOR
tt FORSUBMISSION
FORMAT OFPOJECTBASEDPROPOSALS
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ENTREPRENEURS
PRIVATE UNDERNHM
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6. Management - Pageno.48
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of Promoters Pageno.7
7. Briefbackground
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1 6 . No.of farmersto be benefited
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1 7 . SWOTAnalysis. Page63
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- IRR,NPVBenefitcostratio,BEP,DSCR,Projected
Analysis
1 8 . Financial
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balancesheetetc . Page36-42
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1 9 . Nameof the sponsoring bankalongwiththe detailof Techno- economical report
appraisal
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(DPR)
,copyof sanctiontetterand DetailProjectReport as to
submitted bank.
) Page64-85
)
20. Socialbenefitswithreferenceto employment generation.
) (a) DirectemploYment :- 7 workers
(b) employment
Indirect :- morethan20 .
)
(c) Women:- 4 .
)
to itscapacityto generate
of the projectwithspecialreference
2 1 . Detailof the sustainability
, Page 43.45
incomesinceonlyonetimegrantis admissible.
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schedule.
22. Implementation Page 47
) sought.Rs.2500000.
23. Amountof subsidy
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) The global food and nutritional security of growing population is a great challenge,which looks
for new crop as sourceof food and nutrition. In this context, mushroomsfind a favor which can
) be grown even by landless people, that too on waste material and could be a source for
) proteineousfood. Use of mushroomsas food and neutraceuticalhave been known since time
immemorial,as is evident from the descriptionin old epicsVedasand Bible.
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Earlier civilizations had also valuedmushroomsfor delicacyand therapeuticvalue. In the present
) time, it is well recognizedthat mushroomis not only rich in protein, but also containsvitamins
) and minerals,whereas,it lacks cholesteroland has low calories. Furthermore,it also has high
medicinal athibutes like immunomodulating, antiviral, antitumor, antioxidants and
) hepatoprotective properties. With the growing awareness for nutritive and quality food by
growing heahh conscious population, the demand for food including mushrooms is quickly
)
rising and will continue to rise with increasein global population which will be 8.3 million by
, 2025 andexpandableincome. The mushroomcultivation has grown up in almost all the parts of
3 the world and during last three decades,the world mushroomproduction achievedthe growth
rateof about l0ol0.
3
Globally, China is the leading producer of mushroomswith more than 70% of the iotal global
) productiou which is attributed to community, based farming as well as diversification of
3 mushrooms.In Indi4 owing to varied agro-climateand abundanceof farm waste, different types
of temperate,tropical and subtropical mushroomsare cuhivated throughout the country. It is
) estimatedthat India is generating 600 million MT of agricuhural waste besides, fruit and
3 vegetableresidue, coir dust, husk, dried leaves,prunnings, coffee husk, tea waste which has
potentialto be recycled as substratefor mushroomprodtrctionleadingto nutritious food as well
a asorganicmanurefor crops.
) Mushroomproduction being an indoor activity, labour intensiveand high profit venture provides
) ample opportunities for gainful employment of small, farmers, landlesslaborers, women and
unemployed youth. Therefore, promotion of mushroom cultivation shall a step to meet
3 nutritional needsto reducemalnutritionand providing livelihood to landlesspoor.
J Mushroom cultivation in India is of recent origin and it was in the 196l when ICAR funded a
J schemeon button mushroomcultivation technology at Solan which led to the establishmentof a
LJNDP project with FAO experts. The pioneering research work of the FIPKVV at their
) Agriculture College campusat Chambaghat,Solan laid a firm foundationfor mushroomresearch
nt in the country. National Centre for Mushroom Research& Training was establishedin 1983 at
the sameplace under the aegis of ICAR that was later renamedas National ResearchCentre in
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1997 and upgradedto Directorateof Mushroom Researchin December2008. Number of other
) institutions and StateAgricuhural Universities have since undertakenR&D activities in button
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and various other mushroomsand the mushroomproduction in the Country has progressedfrom
t mere5000tons in 1990to morethan I lakh ton in 2010.
,
The presentreport is an effort to pool the information of cultivation, marketingand utilization of
t commerciallygrown mushrooms.The report encompasses all the aspectsof various commercial
mushroomsfrom culture maintenance to processingand marketing. The aspectof diversification
t in mushroom production, so important for India, has been adequatelyaddressed.Engineering
t aspectsof farm-design,machinery,etc in mushroomproduction, economics,cooking have also
found due importance.This also provides insights about button mushroomindustry to client and
t otherpeopleto get going in the field and servenation giving quality.
,
We really appreciate the efforts and enterprise selection by our client Kiran Agro Park, Bhilai,
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Chhattisgarh in bninging out commercialcultivation of Oyster mushroom,which is one of the
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fastestgrowing enterprisesin the agricultureindustry.
,
Mushroomproduction being an indoor activity, labour intensiveand high profit ventureprovides,
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ample opportunities for gainful employment of small, farmers, landless laborers, women and
'Therefore,
I unemployed youth. promotion of mushroom cultivation shall a step to meet
nutritional needs to reduce malnutrition and providing livelihood to landless poor. By
t understandingthe processand mechanismtoday Kiran Agro Park quoting a very good example
I in fiont of nation which helps many families to earn their livelihood and creating next
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generationsmore heafthy.
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To conclude,as a livelihood diversificationoption, mushroomcultivation hasenormouspotential
{ to improve food security and income generation,which in turn can help boost rural and peri-
I urban economic growth and enhancean individual's and a community's capacity to act upon
s othereconomicopportunities.
,g The activities of Kiran Agro Park will contribute greatly to the overall development of the
a locality in terms of employment generation, improved standardof living, eco-friendly waste
disposal,nutritional & medicinalvalue addition and equitablelivelihood opportunities.
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) CHAPTER2: PROJECTPROFILE OF KIRAN AGRO PARK
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I Name& Address Kiran Agro Park,
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) Bhilai-490023(Chhattisgarh)
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3 CIIAPTER 3: INTRODUCTION
) Indian agricuhure will continue to be a main strengthof Indian economy. With the variety of
agricufturalcrops grown today, we have achievedfood securityby producingover 200 million
I tons of food grain. However, our struggleto achievenutritional security is still on. Though we
I have significant achievementsin milk, vegetablesand fruit production still we have to do more.
In future, the eyer-increasing population" depleting agricultural land, changes in environment,
t water shortageand need for quality food productsat competitiverates are going to be important
issues.To meet thesechallengesand to provide food and nutritional security to our people,it is
,
important to diversifr the agricultural activities in areaslike horticuhure.
I
Diversification in any farming system imparts sustainability. Mushrooms are one such
I component that not only impart diversification but also help in addressingthe problems of
qualrty food, health and environment related issues. One of the major areas that can confiibute
t towardsgoal of conservationof naturalresourcesas well as increasedproductivity is recycling of
t agro-wastesincluding agro-industrial waste. Utilizing these wastes for growing mushrooms can
enhanceincome and impart higher level of sustainability.
,
t Commercial production of edible mushrooms bio converts the agricultural, industrial, forestry
and household wastes into nutritious food (mushrooms). Indoor cuhivation of mushrooms
) utilizes the vertical spaceand is regardedas the highest protein producer per unit area and time-
almost 100 times more than the conventional agriculture and animal husbandry.This hi-tech
)
horticulturp venture has a promising scopeto meet the food shortageswithout undue pressureon
) land.
) Mushroom farming today is being practiced in more than 100 countries and its production is
)
) increasingat an annual rate of 6-70/o.In some developedcountries of Europe and Americ4
mushroom farming has attained the stdus of a high-iech industry with very high levels of
I mechanizationand automation. Presentworld production of mushroomsis around 3.5 million
n tones as per FAO Stat and is over 25 million tonnes (estimated) as per claims of Chinese
) AssociationofEdible Fungi. The wide variation in world productiondata in FAO Stat and CAEF
) is partly due to the fact that in FAO Stat, mushroommeansbutton mushroom(Agaricus spp.)
along with the boletes,morels and tuber, whereasCAEF data covers all types of mushrooms.
) China alone is reportedto grow more than 20 different tlpes of mushroomat commercialscale
), and mushroomcultivation hasbecomeChina's sixth largestindustry.
) Presently, three geographical regions- Europe, America and East Asia contribute to about 960lo
of world mushroomproduction.With the rise in the income level, the demandfor mushroomsis
)
-) bound to increase in other parts of the world as well. China has been producing mushrooms at
very low costs with the help of seasonalgrowing, state subsidiesand capturing the potential
;
markets in the world with processedmushrooms at costs not remunerativeto the growers in other
mushroomproducingcountries.
In younger mushrooms the pileus and stipe are connectedby a membranousstructure known as
veil or veilum. It is broken at maturity. In younger stages,the fruiting body of Agaricus
resemblesa button. Hence this stage is refened as Button stage. Usually its basidiocarpsare
t harvestedat this button stage. The other fleshy fungus of Ascomycotina known as Morchella
t producessporesinside a sac like structure.
) In spite of some articles that say mushroomscan be grown in any dark hole or building,
successfulcommercial mushroom growing requires special houses equipped with ventilation
) systems. While mushrooms are usually grown in the absence of light, darkness is not a
) requirement.Mushroomshave been grown in unusedcoal and limestone mines, old breweries,
basementsof apartment houses, natural and man-made caves, rhubarb sheds, and many other
t unusual structures. Mushrooms were reportedly grown in an old dairy barn, which was so damp
t that cows living in it haddied of pneumonia.
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ft Mushroom cultivation is a labor intensivejob and in the recent past many large farms had to
abandon their operations in Europe and America due to very high labour cost. Comptete
E mechanizationof a farm where labour requirementwill be less is a very high capital investment
tl proposition making this activity uneconomical and uncompetitive. In India where labour is
cheap,coupledwith plentiful supply of agro wastesand requisitetemperaturemake this activity
! more attractive and most economical.In view of this many big units have come up in India
cultivating white button mushroom,most of their produceis exported to America and European
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countriesearningpreciousforeign exchange.
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In order this effort going commercial mushroom cuhivation, Oyster Mushroom is great
! movement for Kiran Agro Park to grow along with existing mushroom facility and contribute
! towards the growth ofthe Indian economy.
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CHAPTER 4: BACKGROUND
1. Origin:
The Chinesewere the fnst to artificially cuhivate the tropical and subtropicalmushroomsabout
thousandsyear back (Auricularia polytrbha in 600 AD; Flammulina velutips in 800 AD; and
Lentinula edodes in 1000 AD) but real commerciat venttires started when Europeansstarted
cuhivation of button mushroomin cavesduring 16ft and lTth centuries.In the late lgth century,
mushroom production made its way acrossthe Atlantic to the United Stateswhere curious home
gardenersin the East tried their luck at growing this new and unknown crop. Th" f",$ producer
of pure culture virgin spawn was the American SpawnCompany of St. Paul Minnesota,headed
by louis F. Lambert, a French mycologist at the beginningof 2fth Century.By 1914,mushroom
marketing began to play a much greater role in the industry. In the beginning button mushroom
dominated the world scenario and even upto 1979 it contributed 70 percent of the world
muslnoom production. Since then number of other mushroomshave been commercializedand
by 1997 the share of button mushroom fell down to 32 percent and mushroomslike shiitake,
oyster mushroorn,paddy straw mushroorn"wood ear muihroom, etc started gaining popularity.
Mushroom cuftivation in India is of recent origin and it was in the 1961 when ICAR funded a
schemeon button mushroomcultivation technologyat Solanwhich led to the establishmentof a
LJNDP project with FAO experts. The pioneering research work of the HPKVV at th'eir
Agricufture College campusat Chambaghat,Solan laid a firm foundation for mushroomresearch
in the country. National Centre for Mushroom Research& Training was establishedin 1983 at
the sameplace under the aegis of ICAR that was later renamedas National ResearchCentre in
1997 andupgradedto Directorate of Mushroom Researchin December2008. Number of other
institutions and State Agricultural Universities have since undertaken R&D activities in button
and various other mushroomsand the mushroomproduction in the Country has progressedfrom
mere 5000 tons in 1990 to more than I lakh ton in 2010. Diversification in any farming system
imparts sustainability.Mushrooms are one such componentthat not only impart diversification
but also help in addressingthe problemsof quality foo4 health and environmentalrelatedissues.
Commercial production of edible mushroomsrepresentsunique exploitation of the microbial
J,
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technology for the bioconversion of the agricultural, industrial, forestry and householdwastes
into nutritious food (mushrooms).Indoor cultivation of mushrooms,utilizing the vertical space,
) is regarded as the highest protein producer per unit area and time. This hi-tech horticulture
venturehas a promising scopeto meet the food shortages,without undue pressureon land. For
)
the people of a developing country like India, the two main issues are the quality food and
) unemploymentbesidesthe environmentalissuesandtheseissuescan be resolvedby popularizing
mushroomcultivation amongst the rural Inassesand the young generation.
,
2. Botanical Description:
t
) Mushrooms are primitive organisms known as fungi. The organism lack chlorophyll which
I synthesizefood in higher plants in presenceof sunlight. They do not possessthis greencolour
substanceso they cannot preparetheir own food. They grow saprophytically on dead organic
t matters or other living organisms. Mushrooms ane fruit bodies or reproductive structures
emanatingfrom the myceliunq which under natural conditions lie buried in the soil or in the
'
substratewhere conditions are favorable for their growth. Recently Chang & Miles (1989) has
t defined mushrooms as, a micro fungus with a distinctive fruiting body which can be either
epigeousor h)?ogenous and large enough to be seenby naked eye and to be picked by hand.
I
Mushroomsbelong to classfungi of the plant kingdom. They are often defined as plantswithout
)
chlorophyll, that lack differentiation into stem, leaves,flowers and have distinct fruiting , which
? may be above or below the soil. Mushroom is derived from mousseron(French), atermtlat
includesedible & poisonousmushrooms.
)
The vegetative mycelium is composed of many inter-woven sepatatehlphae. The reproductive
I phaseis initiated by the formation of small knob like swellings at different points of interwoven
)
mycelial strands. These swellings increase in size and break through the surface of the
I
substratum as small balls constituting the button stage. A matured basidiocarp (fruit body) is
I whitish in colour and consistsof thick short stipe with an annulus.The stipe supportsthe pileus
which appearsas a hat like expansion.On the undersideof the pileus, a numberof radiatinggills
,
or lamellaare presentwhich are pink when young but purple-brownwhen mature'
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3. Seed(SpawnProduction):
Spawn,i.e. seedrequired for growing mushroon; is the vegetativemycelium from a selected
mushroomcultured on a convenientmedium like wheat, pearl millet, sorghumgrains, etc. In
simple words spawn is grains covered with musbroom mycelium. It essentially involves
preparationof pure culture of mushroomfiom tissue/spores,evaluationof selectedcukuresfor
yield, quality and other desirable traits, maintenanceof selected cultures on suitable agar
mediunr,followed by culturing on sterilizedgrains and firther muhiplication on grains.From
1652to 1894A.D. spawn was gatheredfrom the wild rather than made and was referred as
Naturalor Virgin spawn(from pastures& meadows)andFlake spawn(breakingofbeds through
which mushroommycelium has run), Mill-tack spawn(bricks dried and madefrom mixture of
horsedung cow dung and loam soil). In the beginningof 20th century pure mycelial culture
were madeandusedfor makingmanurespawnon sterilizedhorsemanureor compostmanure.
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Mushrooms are a rich source of nutrients, particularly proteins, minerals and vitamins such as
Vitamin B, C and D. The content of the anti-pellagravitamin, niacin is comparableto its levels
found in pork or beet, which are the richest known sources of this vitamin. Mushroom
cultivation is the only major fermentation industry, which involves the bio-conversion of
cellulosewastesinto edible biomass.
Meeting the food demand for the increasingpopulation from the limited land resourceis a big
challenge for our Indian democracy in this vulnerable climatb change era. In addition to this,
wide spreadmalnutrition and associateddiseasesare more common among the economically
poor populatiori.This compels us to searchfor cheapahernative quality nutritional sourcesfor
our huge population. Non green revolution otherwise refered as mushroom farming is one
amongthe apt ways to meet this challengebecausemushroomsgrow on wasteswithout requiring
additionalland besidesits exceptionalnutritional and medicinalproperties.
Indian diet is primarily basedon cereals(wheat, rice and maize), which is deficient in protein.
Supplementation of mushroom recipe in Indian diet will bridge protein gap and improve the
general health of socio-economically backward communities. Earlier mushnooms were
consideredas an expensive vegetable and were preferred by affluent peoples for culinary
purposes.Currently common populace also considersmushroom as a quality food due to its
health benefits.Mushroom is consideredto be a complete,health food and suitable for all age
groups,child to agedpeople.The nutritional value of mushroomis affectedby numerousfactors
such as species,stage of development and environmentalconditions. Mushrooms are rich in
protein, dietary fiber, vitamins and minerals. The digestiblecarbohydrateprofile of mushroom
includes starches, pentoses, hexoses, disaccharides, amino sugars, sugar alcohols and sugar
acids.The total carbohydratecontent in mushroomvaried fiom 26-82%oon dry weight basis in
different mushrooms. The crude fiber composition of the mushroom consists of partially
digestiblepo$saccharidesand chitin.
KiranAgroPark,Bhilai,Orhattisgarh
15
B. MedicinalValues:
The edible mushroomshave little fat \ilith higher proportion of unsaturatedfttfy acids and
absenceofcholesterol and consequentlyit is the relevantchoice for heart patientsandtreating
cardiovasculardiseas€s.Minimal sodium with rich potassium in mushroom enhancessalt
balanceand maintainingblood circulation in humanbeing. Hencg mushroomsare suitablefor
peopb suffering from high blood pressure.Regularconsumptionof mushroomslike Lentinula"
Pleurotusspp.decreases cholesterollevels.The lovastatinobtainedfrom Pleurotusosheatusand
eritadeirineobtainedfiom shiitakehasthe abiliry to reduceblood cholesterollevels.
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The diabeticpatientschoosemushroomas an ideal food due to its low calorific value, no starch,
little fat and sugars.The leanproteins presentin mushroomshelp to burn cholesterolin the body.
Thus it is most preferablefood for peoplestriving to shedtheir extra weight.
3. Prevents cancer
Compoundsrestricting tumor activities are found in some mushroomsbut only limited number
have undergoneclinical trials. All forms of edible mushrooms,and white button mushroomsin
particular, can prevent prostate and bneastcancer. Fresh mushrooms are capable of arresting the
action of 5-alpha-reductaseand aromatase,chemicals responsible for growth of cancerous
tumors. The drug known as Polysaccharide-K(Kresin), is isolated from Trametesversicolor
(Coriolusversicolor), which is used as a leading cancer drug. Some mushroom-derived
polysaccharideshave ability to reduce the side effects of radiotherapy and chemotherapytoo.
Such effects have been clinically validated in mushrooms like Lentinula edodes,
Trametesversicolor,Agaricus bisporus and.others.Seleniumin the form of seleo proteinsfound
in mushroomshas anticancerproperties.According to the InternationalCopper Association,the
mushnoom'shigh copper levels help to reducecolon cancerbesidesosteoporosis.
4. Regulatesdigestive system
5. Strcnglhens inmunity
Mushrooms, akin to plants, have a great potential for the production of quality food. Theseare
the source of bioactive metabolites and are a prolific resource for drugs. Knowledge
advancementin biochemistry, biotechnology and molecular biology boosts application of
mushroomsin medical sciences.From a holistic consideration,the edible mushroomsand its by-
products may offer highly palatable, nutritious and healthy food besides its pharmacological
benefits.
Still there are enoughchallengesahead.Until now, how theseproductswork is elusive and vast
numberof potentialwild mushroomsis not explored.The utility of mycelia is paid little attention
but it has tremendous potential, as it can be produced year around with defined standards.
Knowledge on dose requirement,nouteand timing of administration,mechanismof action and
KiranAgroPark,Bhilai,Chhattisgarh
17
site of activity is also lacking. Work is under progressin various laboratoriesacrossthe world to
validatethesemedicinalpropertiesand to isolatenew compounds.If thesechallengesare met out
in the coming days, mushroom industries will play a lead role in neutraceutical and
pharmaceuticalindustries.The increasing awarenessabout high nutritional value accompanied
by medicinal propertiesmeansthat mushroomsare going to be important food item in coming
days and at placesmay emerge as a substituteto non-vegetarianfoods. Growing mushroomis
economicallyand ecologically beneficial. Consumingmushroom is beneficial in every respect.
Thus mushroomsaretruly health food, a promisingneutraceutical.
KiranAgroPark,Bhilai,Chhattisgarh
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Large scale white button mushroom production is centered in Europe (mainly western part),
North America (USA, Canada)and S.E. Asia (China Kore4 Indonesia"Taiwan and India). The
nationalannualproductionof mushroomsis estimatedto be around 50,000 toneswith 85 percent
of this productionbeing of button mushrooms.
Marketing is getting the right product to the right people, at the right price, at the right time and
in the right way. Marketing of fresh mushroomsall over the world is not very organizedexcept
the auction system in Netherlands. Producers make direct efforts to bring the produce to the
super markets and 'wholesale distributor' element is mostly missing. However, trade in the
), processed(cannedand dried) is sizeable and organized
a. Global Scenario:
)
About the mushroom marketing, Stan Hughes said 'Mushroom growers have mystified me for
) years.They put so much effort into growing and so little into selling". For effective and efficient
), marketing, especially exporg it is necessaryto understandthe global trade vis-i-vis the sources
of supply, potential regions of demand and consumption patterns. The global'mushroom
\J)
productionas per FAO Statisticswas estimatedat about2.18 to 3.41 million tons over period of
) last ten years(1997-2010).Mushrooms in FAO databasehave been classified as FAOStat code
0449 and have beendefined as those inter alia: Boletus edulis; Agaricus campestris,Morchella
)i
spp. and Tuber magatum.Sincethere was an increaseof about 56% world mushroomproduction
in last decadesand guesstimatescan be put on current production to be around 3.5 million tons.
China, USA, Netherlands,Poland, Spain,France,Italy,Ireland, Canadaand UK are the leading
a
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I China
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I Poland
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I lreland
I ltaly
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I lndonesia
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I lran
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I Denmark
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I NewZealand
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The three major mushroomproducing countriesas FAO data viz., Chinq USA, and Netherland
)
accountfor more than 60%oof the world production;howevershareof China itself is 46% which
) is about half of the world mushroom production. According to current Indian estimates,
mushroom production of India is about I lakh mehic tons, which is about 3Yo of the world
t mushroomproduction.In USA and Europe major contributiontowards mushroomproductionis
, by white button mushroom. In Asian countries the scenariois different and other speciesare also
cuhivatedfor commercialproduction
)
Consideringttra;t95yo of mushroom production in China is consumedlocally, the consumption
t per capita is likely to be over l0 kg/person/year. This is drastically higher than in US and many
) Europeancountrieswhere it is around 3 kg/person/year.In India the consumptionis miserably
low. Consideringthat we produce over 1 lakh tons and export about 60-70Voof it, our per capita
) consumption is around 30-40 g/personlyeat
,
World mushroomproduction (FAOSIaQ is continuously increasingfiom 0.30 to 3.41 million
l tons over period of about last 50 yearsfrom 1961to 2010. Also the export and import fiend lines
shows that the mushnoom export/import has continuously increased in last 40 years, but
) marginally up io 1985 and beyond it there is tremendous increase in mushroom export/import
I upto 2010. Poland, Netherland, Ireland, China, Belgium, Lithuania, Canda and USA are the
major mushroomexporting countrieswhile countrieslike UK Germany,and France.
l
World processed(canned and dried) mushroom export is continuously increasing from 0.049 to
) 0.683 million tons over the period of last four decades(1970-2010) as comparedto the fresh
)
) mushroomexport (0.014 to 0.482 million tons) but fluctuationsin export is higher in caseof the
processedmushroom. In USA" five decades ago,75o/oof the mushroom consumption was in the
) form of cannedmushroom.Today, cannedmushroomcontributesonly 15% of total mushroom
) consumption
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b. National Scenario
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There is no denying the fact that production of mushrooms,especially of the white button
Mushroom & Oyster Mushroom, in India has gone up in the last few years but it has also
) exacerbatedits marketing problems. There have been frequent reports of gluts in north Indian
Statesduring the winter months forcing the distresssaleof the mushrooms.It should be borne in
)
mind that efforts to increasethe production without solving its marketing problems, would be
) counter-productive.The marketing of fresh mushroomswould determinethe future of mushroom
industry in India.
l
Despitethe changing currents,there is not yet much market for the processedfoods and basically
)
fresh vegetablesand fruits are preferred in this country. Freshmushroomshave very short shelf-
) life, cannot be transportedto long distanceswithout refrigeratedtransportfacility and are sold in
localized markets in and around production areas.The cultivation of white button mushrooms
I
throughoutthe year under controlled condition is restrictedto few commercial units and 30-40%
'
I ofthe production is being done under natural conditionsduring the winters. All the problemsof
marketing is experiencedin 2- 3 wintermonths (Dec-Feb)when more than75%oof the annual
) production comes in market for sale in limited duration and market area. Farmers face the
) consequencesof over-saturated market and are forced to sell their produce at highly un
remunerativeprices.Private processors,ratherthan coming for rescue,get temptedto avail of the
t situation for their benefrt.
,
Marketing of muslrooms in India is not yet organised.It is the simple system of producers
I selling directly to retailer or even to consumer,which has its own limitations. Unlike the other
countrieswhere l0% of the total cost is earmarkedfor marketing,we have not given marketing
t sufficient thought and investment.Per capitaconsumptionof mushroomsin
I
India is less than 50 g as against over a kg in various countries.There has not been any serious
) effort to promote the product, to strengthen and expand the market in order to increase its
consumption. Mushroom is a novel food item for this country and what to ask of its flavour,
)
texturg nutritive value, many are not aware of 'what is mushroom and whether vegetarianor
) non-vegetarianitem?'
t In the coming years,there is going to be good demandfor processedand fast foods. Mushrooms
may be canned to meet the demand in the off-seasonand in the nonproducing areas.Product
)
diversifieation shouldalso be tried. Regardingthe problemsof sale/exportof cannedmushrooms,
) serious thought has to be given to bring down the cost of production of mushroomsand its
processingin orderto competein the internationalmarket.
)
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Kiran Agro Park,Bhilai, Chhattisgarh
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l 23
,
2. Demand and Supply Patterns
)
White button mushroomsare grown all over the world and account for 35-45 % of the total
I
mushroom production. In India, large units with production capacities between 2000 - 3000
I tones / annum have been set up mainly as export oriented units in the southern,western and
northern regions. A large number of small units without climatic control equipment exist
, throughoutIndia and function during the autumnand winter months only.
,
A big gap exists betweenthe demand and supply position of quality Oyster mushroomsin the
t United States and European market. India exports the highest quantity of the mushroom
produced in the country to USA. Netherlands and China account for 60%oof the export of
)
mushrooms.Germany is the largest importer and Franceand UK are large producersas well as
I
consumers.
, The demandfor fresh mushroomis increasingin the internationalmarket while that of preserved
or cannedmushroomsis decreasing.
,
) Nigerian having vast demand to market their mushrooms in their domestic market by having
commercial and qualrty production and then they can go for further exports of the same. There is
t huge demandand supply gap for samemarket and they have potential to cater various market.
t The possibilitiesof exporting fresh mushroomsto the marketsin Middle East, Europe and USA
) need to be explored.Europe is a very large producer of fresh button mushroomsas such only
someexotic varietiesof mushroomswhich are high priced can be exported to thesecountries.
I However, some inhibiting factors are high cost of transportationand absenceof proper pre-
cooling techniquesand storagefacilities.
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t 3. Export/Import Trends of Mushroom
t
World Production
,
The major varieties of mushrooms produced in the world are European or white-button
t mushroom(Agaricus bisporus),Oyster mushroomor Dhingri (Pleurotus spp), Chineseor paddy-
straw mushroom (Volvariella volvacea), shitake mushroom (Lentinus edodes)
t andAuriculana spp. Among thesethe most widely cultivated speciesis the Agaricus bisporus,
which accounts for almost 38%oof the total mushroom production. About 2,000 varieties of
t mushroomsgrown in the world are edible. Thesevarieties.aregrown in diverse regions of the
I world. The white-buttonmushroomis grown in the U.S.A, Franceand China.
I'.-- The Oyster mushroomis concentratedin China, which accountsfor over 80% of the production.
It is also grown in South Korea and ltaly. India is not a major producer of any of the mushroom
I varieties, but it doescuftivate mushrooms.The variety gaining maximum importance in India has
beenthe white-buttonmushroom,which registeredthe highestgrowth rate in production.
I
t World Trade
I Only about 45% of mushroomsproducedare consumedin the fresh form. The rest of the 55% is
processedwrth 5Yoin the dehydrated form and 50o/oin the canned form. This is becausetheir
I shelf life in the fiesh form is very short. Hence mushroomsare traded in the world market mostly
in the processedform.
I
I Netherlands is the largest exporter of canned button mushrooms with a market share of about
38.5%.China is anothersignificant exporterof the processedform of this variety, accountingfor
t almost 30% of world trade. France is anotherimportantexporter,contributing to about 135% of
the world exports.
I
Table 3: Importer countries of Mushroom
,
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As far as the import market is concerned,the most significant buyer of canned white button
) mushroom is Germany.This country alone accountsfor almost 40Yoof the world imports.USA
also imports cannedmushroom,accountingfor about l9% of the world imports.
t
) Netherlands is the leading exporter of button mushrooms (40% share) followed by Chin4
France, Spain, Hong Kong, Taiwarq Indonesiaand South Korea. USA is the largest consumer
t accounting for one third of World production. Other important consumersare Germany, UI!
France,Italy and Canada. The quantity of mushroomsexported by India in comparisonto the
t world export is ahnostnegligible. The following tables l& 2 gives the export statusof fresh and
, dried mushrooms.
I Table 4: Country-Wise Quantity and Value of Fresh Mushrooms Exported From India
during 2007 -2010
i_
t FreshMushrooms
Country
t Quantity Value (USD) ($)
Ireland 80.80 149100
,
Sineapore 1.5 2400
t U.A.E 0.0s 600
U.S.A 2575 l 6l 800
t Total 2657.35 313900
)
Table 5: Country-wise quantity and value of preserved/dried Mushrooms exported from
t India during2007 -2010
l
Presened/dried mushrooms
Country
) Ouantitv ValueruSD)
* France 60.00 I 03280
Japan 2.00 30720
t- Nigeria 7.58 12000
Russia 17.00 38660
t
Switzerland 5.00 12760
! U.A.E 13.01 16000
a U.S.A 6029.66 6l140
Total 6134.25 274560
)
3 The most important importersof white button mushroomare Germany,USA, France,U.K. and
Sweden. Cannedbutton mushroomsare imported by UK, Germany,France,USA, Swedenetc.
3 Asian countries like China, Taiwan, and Korea export their produce to the American and
1 Europeancountriesin the form of cannedmushrooms.
J KiranAgroPark,Bhilai,Chhattisgarh
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) 26
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4. Analysis And Future Strategy:
)
The industry has a comprehensivemarketing and promotionsprogram,basedon five year plans.
)
Part time co-coordinatorsare employed in each state to facilitate this program and to involve
) membersin promotional activities. Regular consumersurveysguide the direction of promotion
with a wide rangeof media being included in the program.Advertisementsare placedon TV and
)
radio and in all forms ofprint media.
)
The industry has a well developednetwork of food and cookery writers who supportpromotional
t efforts. As well direct marketinghas beenusedextensively,with cooking demonstrationsand in-
store activities featuringstrongly in the program.The Association's marketing program hasbeen
)
very successful.This successcan be attributed to careful planning and monitoring of activities,
as well as a commitmentto fund the progftlm at a level which will impact on consumers.Annual
per capita consumptionhas increasedfrom 0.65 kg n 197+to an estimated2.82 kg in 1995196.
)
This comparesvery favorably wrth 1.72 kg in the USA. This increasehas resulted from greater
) consumer awarenessof the nutritional value of muslrooms, as well as their great value for
money. The industry is developing a national grade standardsscheme,which will also enable
)
bettertargeting of consumerneeds.Whilst some grading now takes place, this varies from state
) to state and firm to farm.
, This national scheme will enable product to be described consistently across the country.
Consumershave expresseda demand for more choice in size of mushrooms and more grade
)
categorieswill meet this need. To date, there has been little activity in the export market:
) domesticdemandexceedsproduction, so there has been little incentiveto venture further afield.
The perishablenature of the product makes it costly to transport and to maintain the quality
\
necessaryto achieve good retums on overseas markets. As well, labour costs in Australia are
) higher than many competitor countries and this makes it difficuh to compete. In the near future,
this situation is unlikely to change, as there are mahy other countries better situated than
Australia to serviceoverseasmarkets.There is increasinginterestin specialty mushrooms(ones
) part from the common Agaricus). This is a relatively new segmentof the industry in Australia
and as yet there are only a few growers producing these.differentspecies.In time, this market
) will expandto provideconsumerswith a greaterrangeof choice.
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4.1 Value Added Commodities
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As yet, growers are not particularly active in this market segment.There are someproductswell
I
establishedon the market, including cannedmushroomsin saucesor in brine. Somegrowers are
I packing into 200gm pre-packs,and theseare proving popular with consumers.There have been
someattemptsto market a sliced mushroompack and this may becomemore common.
I
Overseastrends indicate that it is likely this market segmentwill expand, with pre-packaged
l productsincluding salad packs and things like mushroomswith microwaveablesaucescornmon
I in the US. Most vafue adding for mushrooms in Australia is done outside the mushroom
industry, by other food producers.Mushroomsare important ingredients rnphzas, pasta sauces
I and many pre-packagedmeals.
t"v j
4.2 Market Opportunities
I
Mushroomsare very popular in most of the developedcountriesand they are becomingpopular
I in many developing countries like India. Applications and market for mushrooms is growing
rapidly in India becauseof their nice arom4 nutritious values, subtle flavor and specialtaste.
I Many exotic food preparationslike soup, vegetables,pickles etc. are made from them. They are
I also used for garnishing, to prepare many varieties of gravy and for stuffing several food
preparations.But they are still consideredas up-marketproduct and their consumptionis limited
I to urban and semi urban areas.Fresh mushroomshave very limited shelf life but processedand
I cannedmushroomshave fairly long shelf life and can be sold even at far offplaces. Star hotels,
exclusive restaurants,certain caterersare the bulk consumersand a firm tie-up for regular supply
a with someofthem is advisable.The product can be sold even through departmentalstores,super
I markets
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CIIAPTER 7: PRODUCTION TECIINOLOGY
)
The cuhivation of Oyster mushroomor Dhingri mushroomor Pleurotusspp is relatively simple
) and can be a homesteadproject. The agro- climatic conditions in our country especially in the
) North Indian Statesare conducive for mushroom cultivation when the temperatureis l5-30oC
and relative humidity is 70-80%. The productiondecreasesduring peak periods of winter.
t
7.1 Climate & other conditions:
I
Pleurotusspp. is one of the choice edible mushroomswhich can be cultivated in the tropics. It
I has gained importanceonly in the last decadeand is now being cuhivated in many countries in
) the subtropicaland temperatezones.Different speciesof Pleurotusare suited for growing within
a temperature range of 15 to 30oC. P.sajor-caju can tolerate temperaturesupto 28-30oC,
t,
althoughit fruits hster and produceslarger mushroomsat 25oC during the cooler monthsof the
, year or in the highlandsof the tropics. This is the speciesnow popularly grown in the tropical
SoutheastAsian countries, including India. P.abalonusprefers lower temperaturesof 22-24oC
, and is most popular among the Chinese.P.ostreatusis the so-called low-temperaturePleurotus,
fruiting mostly at l2-20oC. This speciesis more suitedto the temperateclimates of Europe and
I the United States,ahhoughmany growers in the USA are also producingP.sajor-caju.
'
In Europe it'is known as the oyster mushroom(P.ostreatus)while in China it is called the balone
I mushroom(P.abalonusor P. cystidiosus).Severalother speciesare now availableforcultivation.
These are P.sajor-caju,P.florida (probably a variant of P.ostreatus),P.sapidus,P.eryngii, P.
I columbinus,P.cornucopiae,and P.abellatus.
I
7.2 Substrate:
I
Like other mushrooms,Pleurofus spp. can be grown on various agricultural waste materials
,,
using different technologies.They grow well on different types of lignocellulosesmaterials,
l' convertingthem into digestible and protein-rich substancessuitable for animal feeds.Pleurotus
spp. may be produced in the tropics on a mixture of sawdustand rice bran, rice straw and rice
)
bran, saw dust and ipil-ipil leavesand other combinationsof tropical wastes.Other wastessuch
, as corncobs,cotton waste, sugarcanebagasseand leaves,corn leaves,grasses,rice hulls and
water hyacinth leavesare also good substratesfor growing this mushroom(Quimio, 1986).The
'
substratesusedin eachregion dependupon the availability of agriculturalwastes.
l
7.3 Preparation of substrate - Sterilization / Pasteurization:
)
The use of a pressure cooker to sterilize Pleurotus substrate is not recommended since
) sterilization kills beneficial micro organismswhich are present in the substrate,as well as the
harmful ones. In addition, nutrients in the compost are broken down by sterilization into forms
)
more favorable for the growth and developmentof competing micro organisms(FAO, 1983).
), Thus, substratesthat are sterilized are easily contaminatedunless spawnedunder very aseptic
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) KiranAgroPark,Bhilai,Chhattisgarh
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I 29
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conditions, as in media and spawn prep4lation steaming at l00oC (pasteurization) is more
I acceptablebecausethe cost is lower (ttrpfsteamer may only be an ordinary large-capacity
) casseroleor a drum) and substratesthus,bteamedare less susceptibleto contamination.The
substrateis steamedfor 2-3 hours, depenffne on the volume and the size of the bags. When
) using a lower temperature(60-70oC) as in tlfe caseof room or bulk pasteurization,the substrates,
) whetherin bulk or alreadypackedin bags,are steamedfor at least6 to 8 hours.
) Spawning is canied out aseptically, preferably using the same transfer chamber or the same
inoculationroom asiis used in spawnspreparation.Grain or sawdustspawn is commonly usedto
I
inoculate the substrate in bags. With grain spawrL the bottle is shaken to separatethe seeds
t colonizedwith the white mycelium. After lifting the plug and flaming the mouth of the bottle, a
few spawn grains (about I to 2 tsp.) are porned into the substratebag. Both the plug of the spawn
) and the plug of the compost bag are replaced and the next bags are then inoculated. The newly
I inoculatedbags are slightly tilted to distribute the grains evenly in the shoulderareaof the bag
around the neck.
)
For sawdust spawn, the spawn is broken up with an aseptic needle. A piece of the spawn may
) then be transferred,using a long flat-spoonedneedle especially designedto scoopthe spawn.
) One bottle of grain or sawdust spawn in a 500 ml dextrose bottle is sufficient to inoculate 40 to
50 bags.
)
The highly industrialized method involves bulk-pasteurization and bulk-spawning before the
) substratesarEdistributed in beds.similarto those usedfor Agaricus. The systemis labour-saving
) but requires more complex equipment.Bulk material processingand handling are highly risky
for tropical mushroomcuhivation due to the risk of contamination.
)
T.5Incubation:
\ The spawnedcompost bags are kept in a dark room until the mycelium has fully penetratedto
the bottom of the substrate. ln 20 to 30 days, depending upon the substrate/substrate
) combination,the substrateappearswhite, due to the growth of the mycelium. The bags are kept
for an additional week before they are openedto check that the mycelium is mature enoughto
)
fruit. Most strainsof the mushroomform primordia after 3 to 4 weeks of mycelial growth. The
) bagsare opened,to initiate fruiting, insidea mushroomhouse.
) 7.6 Fruiting:
The size of the mushroomhousewill dependon the number of bags preparedat any one time.
The house may be built of nip4 sawali, wood or concrete.Air vents on the upper walls will
provide the ventilation requiredfor the developmentof the sporocarps.At the sametime a small
) amount of light should be provided inside the house. The walls may be covered with plastic or
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foam sheetsto increasethe relative humidity (80-95%) in the production house.Shelves,made
)
from bambooor wood, line both sidesof the house.The shelvesare on bamboofiames, one shelf
) abovethe other, with about 40-50 cm spacebetweenthem. They should be strongenoughto hold
the bagsor blockscontainingthe compost.
)
The bags are opened by removing the plug and then rolling down the mouth of the bag.
)
Alternatively, the mouth portion may be cut off with the help of a sharp instrumentor the bag
) may be slit either criss-crossat four to six placesor simply slashedlengthwise.When following
the latter technique,the bags may be suspendedwith a rope or string. When using blocks instead
)
of bags, the blocks are opened either completely or with only the surface or upper portions
) exposed.
) To harvest the mushrooms,they are to be graspedby the stalk and gently twisted and pulled. A
knife should not be used.If kept in a refrigeratoror in a cool place, the mushroomscan remain
I
fresh for up to 3 to 6 days. After harvesting from the top end of the bag, the other end may be
I openedto allow fruiting. The two ends are sometimesopenedand allowed to fruit at the same
time. After harvestingfrom the end portions,slits may be made on the centralportion of the bag
)
so that more mushroomscan develop. When a sawdustsubstrateis used,the harvestedsurface
)- may be scraped lightly to expose a new surface for fruiting. As long as the substrate appcars
white, mushroomswill continue to form under adequateenvironmental conditions. When it
)-'
appearscolorlessand soft, it is time to removethe bagsfrom the house.
)
7.7 Yield:
)
Yield ranges from about 100-200% of the dry weight of the substrateand dependson the
) substratecombination as well as the way in which the substratehas been managedduring the
fruiting season.The richer the combinationand the whiter and denserthe mycelium, the greater
)
will be the mushroomyield. To increaseyield, the most common supplementused is urea or
) organic fertilizer dissolvedin water (100 gm in 100 liters water). Using a plastic mist sprayer,the
solution is sprayedon the surfaceimmediatelybefore fruiting.
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CIIAPTER 8: POST HARVEST MANAGEMENT
)
8.1 Storage:
t
(A) Short-terrr Storages
)
Fresh mushroomsare packed in perforatedpolythene bags which are directly sent to the local
l
market situatednearby.Freshly harvestedmushroomscan be stored at low temperature(0-50 C)
l for l-2 weeks without loss in quality in caseit is to be sent to the distant markets.
t @) Long-term Storage:
I Dried mushroomwith 2-4%omoisture can be stored for 3-4 months in sealedpoucheswithout
: any change in taste. The dried produce can be rehydrated in luke warm water (40-500 C) within
20-30 minutesgiving 8&90% of original weight.
I
8.2 Packing and Transportation
I
Fresh mushroomsare packed in perforated polythene bags. Poly pouches containing crushedice
I
and overwrapped in paper are put in trayVbaskets which are then covered with thin polyhene
I sheetwith sufftcient perforation for proper aeration.The pre-packedpouches(250 or 500 g.) can
be transported by roadways in trucks, busesdependingupon the quantity to be transported.
I
8.3 Marketing:
)
Domestic marketingdoes not pose'a problem at presentbecauseonly small quantitiesaie being
I
traded. As production develops, marketing promotion measureswill need to be undertaken to
) bolster the demand. Export potential exists and needs to be taken advantage of by organizing
cobperativesof producers linked to commercial units for processing fresh mushroom into
)
dehydratedpowder for export.
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) The demand for Oyster Mushroom is increasing rapidly in international markets and a big gap
exists between supply and demand. There is need to take advantage of this situation by
) encouragingits production which is a highly viable venture as brought out below for Kiran Agro
Park, Bhilai, Chhattisgarhcompanyputting handsin commercialcuhivation of agriculturecrops
)
in the country.Companymovement in to large scaleproduction of Oyster mushroomwould give
) fast returnsto them and will contribute in the weahh of nation.
)
Detailed informationregardingeconomicsof the project is provided as follows;
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34
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ANNEXURE 1: ESTIMATED PROJECTCOST
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EstimatedProject Cost for Kiran Agro
l Park
I Fixed Cost estimation
)
)
A Land & Site Develooment
I I Land Nit Sqft Nil Nit 7000 I s0000
Sub Total 150000
I l:i::r;ii::;:rl
t B BuildineStructure
I Straw StorageShade Sqft 20x25 r50 500 75000
) 2 Strawsoakingroom sqft 30x10 300 300 90000
)
J Sterilization svstern room sqft 3(}xl0 300 300 90000
4 Soawniney'Bed
fi llins room Sqft 3Oxl0 350 300 105000
l Incubation room Sqft 20x25 350 500 175000
6 Growins/Harvestingroom Sqft 40x25 350 r000 350000
)
) 35
)
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t Sr. No. Costof the Items Amt. (Rs. in Lakhs)
)
' I Land Cost 1.50
2 Building (Ciyil & Structural Work) r3.89
'
3 MachinerT & Equipments tl.t4
1 4 Furniture & Fixtures 0.35
)
) f, Preliminary & PreoperativeExpenses 1.88
6 Margin for Working Capital 1.42
)
Total Cost of the Project 30.r8
!,
Sr. No. Means of Finance Amt. (Rs. in Lakhs)
,
I Promoters Contributio n (20%) 6.04
t, , Subsidy *
3 ProposedBank Loan (80%) 24.14
;
I
Total Means of Finance 30.8
1
]
)
Note: SubsidybyNHM for the Mushroomprojectis back-ended.
Hencesubsidyamountis
t includedin thetermloanamountandthesameis ignoredwhilecalculatingintereston termloan.
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will focuson RatioAnalysisWorkingfor the pdect.
Followingannexure
J
2: INTERNALRATEOFRETURN
AI\NEXTJRE
)
Intemal Rate of Return 34.zlYo
)
Cash Fllow Discounting Factor Net Cash Flow Discounted Cash Flow
)
CashOutflowsat year0 1.00000 (2,726,000) (2,726,000)
Net Cashinflows at year I 0.74512 616,142 4 5 9 ,011
)
Net Cashinfbws atyear2 0.5552r 1,262,857 701,147
)
Net Cashinflowsat year3 0.41370 1,486,547 614,980
)
Net Cash inflows rtyear 4 0.30825 1,676,149 516,680
) Net Cashinflowsat year5 0.22969 1,889,933 434,093
) Net PnesentValue 0
)
)
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ANNEXURE4: PAY BACK PERIOD
)
Pay BackPeriod Discounted
t Pay Back Period (Without Discounting) Pay Back Period
l Cumulative Net Cumulative
Year Cash Flow DiscountedCash Flow
)
Year 0 (2,726,000> (2,726,000)
Year I (2,I 0g,g5g) (2,190,224)
' Yeal2 (847,001) (1,235,323)
Year3 639,546 (257,894)
l
Year4 2,315,694 700,449
) 4,205,627
\:.2. Year 5 1,640,079
) Pay BackPeriod 2Years&TMonths 3Yean&3Months
l
ANNEXURE5: BREAK EVEN ANALYSIS
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Here in follows all the financial statementsof the project would start.
l
ANNEXURE7: PROJECTEDPROFIT & LOSSACCOUNT
'
l PrciectedProfit & LossAecount
Ref.
I No. Particulars Schedule 2012-13 2013-t4 2014-ls 2015-16 20lGr7
1,653,7503 , 11 8 , 5 0 0
3 ,430,350 1 ,150,724
3 ,773,385
F A SalesRevenue A
Total Income / Revenue t,653,750 3,118,500,,430J50 ,,7731385 1,1s0,724
F B (Rs)
I
385,875 727,650 800,415 880,457 968,502
, c Raw Material Cost B
c I 15,500 217,800 239,580 263,538 289,892
D LabourChare€s
D Fuel& Electricity 60,610 114,293 125,722 138,295 152,124
t E Exoenses D
F PackineMaterial Cost E 36,750 69,300 76,230 93,853 92,238
I 31,646 59,675 65,643 72,207 79,427
G Transportation Charges
p 10,208 19,250 21,175 23,293 25,622
H Water Charses
20,378 22,416 24,657 , 2 7 , 1 2 3 29,835
1
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I Reoahs& Maintenance
Other Operational 16,333 30,800 33,880 37,268 40,995
J Exoenses
I Office & General 10,000 I 1,000 1 2 , 1 0 0 t 3 , 3 1 0 14,641
K Expenses
t L Insuranc,echarges
25,000 22,000 19,000 16,000 13,000
l. Total Cost (Rs) 712,300 1294,1841,418,4021,555,3421,706277
I
941,450 1,824,3162,011,948
2,218,0432,4u,447
t M Operatins Profit (Rs)
230,625', 295,924 227,368 147,7.92 55,423
N Interest
3 Depreciation & 347,120 307,817 273,698 244,055 218,283
? o Amortization
363,705 1,220,575
1 , 51 0 , 8 8 21,826,195,170,741
P Net Profrt before Tax
T
16,370 196,172 283,265 377,859 481,222
t
a Tax
347,334 1,024,4021,227,6171 ,448$37 1,689,519
R Profit After Tax (Rs)
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Here in follows all the financial statementsofthe project would start.
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ANNEXURE7: PROJECTEDPROFIT & LOSSACCOUNT
t
l FrojectedPrqtit & LossAccount
Ref.
I No. Particulars Schedule 2012-13 2013-14 2014-t5 20r5-16 2016-17
1,653,7503,118,5001,430,350 + ,150,724
3,773,385
F A SalesRevenue A
Total Income / Revenue 1,653,750 3,118,500t,430,3501,773,3851,150,724
F B (Rs)
I
c Raw Material Cost B 385,875 727,650 800,415 880,457 968,502
i
D LabourChars€s c I 15,500 217,800 239,580 263,539 289,892
t Fuel& Electricity 60,610 114,293 125,722 138,295 t52,124
I E Exoenses D
F PackineMaterial Cost E 36,750 69,300 76,230 83,853 92,238
t 31,646 59,675 65,643 72,207 79,427
G Charees
Transportation
F H Water Charges 10,208 19,250 21,175 23,293 25,622
I I Reoahs& Maintenance 20,378 22,416 24,657 , 27,123 29,835
OtherOperational 16,333 30,900 33,980 37,268 40,995
t J Exoenses
I Office & General 10,000 I1,000 1 2 , 1 0 0 1 3 , 3 1 0 t4,641
K ExDenses
I L Insurancecharges 25,000 22,000 19,000 16,000 13,000
I, Total Cost (Rs) 712,300 1294,184 lr4lg,402 1,555J421,706277
t
p M Oneratins Pnofit (Rs) 941,450 1,824,3162,011,9482218,043 1,444,447
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ANNEXURE8: SCHEDULESTO PROFIT & LOSSACCOUNT
I
Schedulesto Profit & Loss Account
t
A SalesRevenue of Mushroom Output Selling Sale (Rs.)
I (Ks/dav) Price/Ke
l5 600 9,000
I Dailv SalesRevenue(Rs.) - Drv Ovster Mushroom
675 405,000
I SalesRevenueDerLife Cvcle of45 davs
4,725 2,835,000
F Annual(7 Life Cycles)SalesRevenue(Rs.)
I
t
B Raw Material Cost Unit Rate Quantity No. of Life Annual Raw
per Kg. per Life Cycles in a Material
(Rs.) Cycle year Cost (Rs.)
I (Kos)
I Staw (Wheat/Soya/Paddy/Cotton
etc.) 6 9,000 7 378,000
t
2 Soawn(Seedfor cuhivation) s0 750 7 262,500
! 3 Chemicals 21,000
AnnualRaw Material Cost (Rs.) 661,500
I
t C LabourCost No. of Staff Labour Costper month Yearly Labour Cost
I I Supervisor I 3.000 36,000
2 Skilledlabour 2 2.500 60.000
I t
J Unskilled labour J 2.000 72,000
t 4 Salesman I 2,500 30.000
Total Labour Cost (Rs) 198.000
I
I
! D Fuel& Electricitv Charses
t DailvUnitsconsumed
Average Rate per unit (Rs)
45
7.33
t DailyElectricityCharges(Rs) 330
ElectricitvCharsesper Life Cycle(Rs) 14,843
t Yearly Fuel & Electricity Charges (Rs) 103,903
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D KiranAgro Park,Bhilai,Chhattisgarh
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t 40
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ANNExt RE 8: SCHEDULESTO PROFIT & LOSSACCOUNT
l
Schedulesto Profit & Loss Account
,
A SalesRevenue of Mushroom Output Selling Sale (Rs.)
t (Ks/dav) Price/Ks
l5 600 9,000
I Dailv SalesRevenueRs.) - Drv Ovster Mushroom
67s 405,000
l SalesRevenueper Life Cycle of 45 davs
4,725
s Annual0 Life Cvcles)SalesRevenue(Rs.)
2,835,000
I
B Raw Material Cost Unit Rate Quantity No. of Life Annual Raw
t per Kg. per Life Cycles in a Material
(Rs.) Cycle year Cost (Rs.)
I (Kss)
I Straw (WheaUSoya/Paddy/Cottonetc.) 6 9,000 7 378,000
I 2 Spawn(Seedfor cuhivation) 50 750 7 262,500
l 3 Chemicals 21,000
Annual Raw Material Cost (Rs.) 661,500
$
I c LabourCost No. of Staff Labour Cost per month YearlyLabour Cost
I I Suoerisor I 3,000 36,000
2 Skilledlabour 2 2,500 60,000
t 3 Unskilled labour J 2.000 72.000
t 4 Salesman I 2.500 30,000
Total Labour Cost (Rs) 198.000
I
t D Fuel & Electricity Charges
DailyUnitsconsumed 45
f' AverageRate per unit (Rs) 7.33
t DailyElectricityCharges(Rs) 330
Elechicity Chargesper Life Cycle (Rs) 14,E43
I YearlyFuel & Electricity Charges(Rs) 103,903
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ANNEXTJRE9: PROJECTEDBALANCE SHEET
,
Projected Balance Sheet
t
Particulars 2012-13 2013-r4 20t4-15 2015-16 2016-17
Assets:
Fixed Assets(Net Block) 2,378,320 2,108,143 1,872,085 1,665,670 1,485,027
l
Land 150,000 150,000 150,000 150,000 150,000
, Building Structure 1,249,920 1,124,928 1,012,435 9ll,l92 820,073
Machinery 946,900 804,865 684,135 5 8 1 , 5 1 5 494,288
*
Furniture& Fixtures 31,500 28,350 25,515 22,964 20,667
I
!:.
Current Assets 441"300 l'250J18 2,118,921 3,085,255 4,159,495
SundryDebtors I 1 8 , 1 2 5 222,750 245,025 269,528 296,480
, CashBalance 323,175 1,027,568 1,873,896 2,815,727 3,863,015
I
MiscellaneousAssets 150,560 112,920 xs280 37,640
t Expenses
Pre-operating I 50,560 112,920 75,280 37,640
t
Total Assets 21970,190 3,471381 4,066286 4,788,565 5,644,522
t
t Liabilities:
Capital Account 761,334 1,659,737 2,742,154 4,030,771 5,544,598
*
Introduced 462,.000
t Net Profrt 347,334 1,024,402 1,227,617 1,449,337 l9
I ,689,5
! Total. 809,334 1,024,402 1,227,617 1,448,337 1,689,519
Drawings 42,000 132,000 145,200 159,720 175,692
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I Kiran Agro Park, Bhilai, Cthattisgarh
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t lnterestdue 22 2L 2t 20 20 19 19 18 18 t7 t7 16
Total t,758 1,7t9 1,58O L,640 1,599 1,558 t,5t7 t,475 L,433 1,389 t,346 L,302
I Repayment 60 60 60 60 60 60 60 60 60 50 50 60
t Closing 1,698 1,659 t,620 1,580 1,539 1,498 LAsT L,415 L,372 L,329 r,286 L,242
Balance
t 2015-15
:, Opening t,242 t,197 !,152 1,106 1,059 L,Otz 95s 9!7 858 819 769 7t8
Balance
I: lnterestdue L6 15 74 L4 13 13 t2 tt LL 10 10 9
Total 1,257 1,2!2 1,166 t,LzO t,073 t,025 977 928 879 829 778 727
t Repayment 60 60 50 60 60 50 60 50 60 60 60 60
t Closing
Balance
L,197 L,L52 1,106 1,059 t,ot2 965 9L7 868 819 769 7L8 667
t 20L6.r7
Opening 667 515 563 509 456 407 346 290 233 L76 118 59
t Balance
t Interestdue 8 8 7 6 6 5 4 4 3 2 1 1
Total 675 623 570 515 467 406 350 294 236 t78 t20 60
I Repayment 60 60 60 50 60 60 60 60 60 60 60 60
t' Closing 615 553 509 456 407 346 290 233 t76 118 59 0
Balance
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ANNEXURE 12:PROJECTED CASH FLOW STATEMENT
,
Pnojgcted east Flow Statement
l
l Particularc 2012-13 2013-r4 2014-13 2015-16 2016-17
t Applications of Funds:
'
FixedAssetspurchase 2,726,000
I
t Increasein working Capital 78,313 69,363 14,768 t6,244 r7,869
j LoanPrincipalRepayment 250,967 426,464 495,020 574,596 666,953
I
CapitalWithdrawal 42,000 132,000 145,200 159,720 175,692
t
Total 3,097,290 621,826 654,987 750,560 860,514
t
t Sourcesof Funds:
t Capitalintroduced 312,000
i Termlnan from Bank 2,414,000
I
q Net Profit afterTax 347,334 1,024,402 1,227,617 1,448,337 l , 6 g 9 , 5 l 9
:
Depreciation
& Amortization 347,120 307,817 273,698 244,055 218,283
!
Total 3,420,454 1,332,219 1,501,315 1,692392 l,g07rg02
t
t Closing Cash Balance 323,175 1,027,569 1,873,896 2,815,727 3,863,015
,*
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46
I
AI{NEXURE 13: FINAITICIAL BENCHMARKS -RATIO ANALYSIS
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, Ratio Formula
*
I Benefrt Cost Ratio PresentValue of DiscountedCash 1.60
*
InfloVPresent Value of DiscountedCash
* Outflow
2 BreakEvenPoint (Kgs) Fixed Cost(Revenue- Variable Cost) at project 8t7
l stabilizationstagei.e. 3'oyear
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ANNEXURE14:PROJECTIMPLEMENTATION SCHEDULE
,
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KiranAgro Park, Bhilai, Chhattisgarh
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