How to Start Oyster Mushroom Farming Business?

In today’s world, many people are becoming more conscious for their health. If you are a health conscious and you get a food supplement which is Rich in Minerals, Vitamin D, Low Calories, High in Fibres and other benefits, then it will be a dream come true. The consumption of this food can help in control of many disease like Cancer, Diabetes and Blood Pressure.

The item which we are talking is not a supplement rather it is a very delicious food item which you can eat at anytime and any quantity. Today in this article we will talking about mushroom farming and that too specifically How to start Oyster Mushroom Farming Business?

There are many advantages of eating mushroom so the business of such a food item can be very profitable as the competition is very low in many parts of the country and major cities. If you want to start this business, then you can read the complete article and know all the important information like Raw materials, Machinery and Equipment, Man power and electric load required to start this business.


Oyster mushroom is used in many industries to make many tablets in pharma industries.

Raw materials

To start oyster mushroom farming crop, you will need oyster mushroom spawn which you can also called the seeds of the mushroom. Straw, Polythene, Insecticides Bavistin and formalin, Brass or wooden sticks.


First, you need straw (Bhusa) as the raw materials. You have to dip straw into water which is mixed with Insecticides Bavistin and formalin for about sixteen to seventeen hours. Then you can take the straw from the water and spread on the floor so that the excess water will evaporate.

Then the straw with little moisture is pack in the polythene with three to four layers and the oyster mushroom spawn are put on the edges. The the straw is completely packaged with the plastic and kept in the room. Different methods like rack method i.e you can make rack (shelves) and keep the straw on them or use hanging method i.e using brass or ropes you can make the place to store the straw.

The holes where the spawns are present are filled with cotton to keep the moisture intact. After 15 days, you can see the germination of pin head like substance from the spawns. When the pin head are present then they need air and light for some time. Throughout the day, they are given six to eight hours of fresh air.

One bag weight approx three to four Kg in which you can put 80 to 100 grams of mushroom spawns. You can easily get seven to eight Kg of mushroom from one bag. After the first harvest, you have to remove the plastic bag. If you are not removing the bag then the crop will be less.

You have to spray water on the straw after removing the plastic bags. Make sure to water then atleast three to four times in a day to keep the moisture in them. The ideal temperature for better growth of Oyster mushroom is 20 degree Celsius to 28 degree Celsius. If the maximum temperature is 35 degree Celsius then the crop production will be good.

If you want more production of mushroom then you can install fans and air cooler to maintain the ideal temperatures. You can do the farming of oyster farming in all seasons if you have the right cooling systems and automatic chambers. The ideal conditions like temperature and moisture will increase the yield and the profit.

When the mushroom is grown then it is cut using the twist method and sell them in the market.

Land Requirement

To start the oyster mushroom farming business, you require less area like 900 to 1000 sq ft. If you want to know the civil works, then you have to built the windows and door in front of each others. If you have a concrete roof the production will be high and for tin roof you can place jute bags to cool down the inner temperature for some degree and increase the moisture inside the room. You will require the brass and ropes in both method i.e handing and rack method.

Electricity Requirement

This business is very low cost business and can be start in your home in very less area. Domestic supply of 220 volts is sufficient for this business and start the cultivation of oyster farming. If you are installing any cooling device like industrial cooler then you may require high voltage according to the equipment.


Normally, to maintain the cultivation of the oyster farming, you just require one person to water, harvest and cleaning of the area. But at the time of harvesting, you may need seven to eight people as per your mushroom yield or harvesting time.


To setup the oyster farming business of the area of 1000 sq ft area, you will need an investment of 10000 rupees for raw materials and labour.


If you want to talk about the profit, then you will have a high profit in this business. You can harvest the mushroom for over two months and can cultivate 1 Kg to 15 Kg of mushroom per two days. You can easily earn 30% to 50% of profits from this business. The market price of oyster mushroom is Rs. 150 to 200 per Kg.

You can increase the profits by selling the dry mushroom or mushroom powder. The selling cost of dry mushroom in market is 600 to 1000 rupees per Kg and the cost of mushroom powder in market is 1400 to 1500 rupees per Kg.

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