MUSHROOM CULTIVATION AND PROCESSING Introduction: Mushroom is a simple form of fungus with high nutritive and medicinal value.

Mushrooms are rich in high quality protein having around 60 70 percent digestible amino acids. It is also rich in vitamins like B.C, D, K and minerals like calcium, phosphorous, potassium, iron, copper and high fibre content. Mushrooms have a low quantity of carbohydrate and fats high quantity of water. Research studies have shown that it is an ideal food for people suffering from diabetics, heart ailments, hypertension and anemia. The Product: Mushroom have been considered as a delicacy the world over. The oyster mushroom (pleurotus) which is mostly cultivated and marketed in the North East. Oyster mushrooms are easier to grow and less cumbersome to process. The climatic conditions in the North East is favorable for its growth. The product is available mainly in two forms i.e. fresh and dried. The proposed unit can would sell 2000 kgs of fresh mushroom and 3000 kg as dried mushroom. Market Potential: The North Eastern Region including Sikkim has a good market for mushrooms. Apart from domestic consumption, the hotels, resorts which are coming up in a big way in the region are potential buyers of the product. Plant Capacity: Working Days/Year : 300 Annual production : 2000 kg of fresh mushroom & 3000 kg of dry mushroom Raw Materials: Amount (Rs) Qty. Paddy straw 150 qtls @ Rs 1000/qtl. 1,50,000 Spawn 25,000 @ Rs 10/2,50,000 Saw dust 40 qtl. @ Rs 100/4,000 Wheat flour 25 qtl @ Rs 1200/30,000 Quick lime 20 qtls. @ Rs 150/3,000 Packing material L.S. 9,000 Rs. 4,46,000 ======= Process: The major process steps are Cultivation of mushroom: Substrate preparation, Steam pasteurization/hot water treatment of substrate. Spawning of substrate. Filling of spawned substrate in trays and polythene sheet enclosures. Incubation of spawned substrate in trays & enclosures. Harvesting and storage of fruit bodies. Processing: Cleaning and grading. Separation of mushroom for drying. Packing of fresh mushroom for marketing. Drying of mushrooms. Packing of dried mushrooms. Marketing. Machinery: Sl.No. Items Value (Rs) 1. Dryer - 1 No. @ Rs 30,000 30,000 2. Big drum - 4 Nos. @ Rs 7,000/28,000 3. Trays 50 Nos. @ Rs 500/25,000 4. Shaft cutter 3 Nos. @ Rs 5000/15,000 5. Poly sheet 3000 Mtrs. @ Rs 20/60,000 6. Sprayers, thermometer, boards 4 Nos. 8,000 Total 1,75,000

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Location: Urban and semi-urban areas in NER including sikkim preferably near to the market area where cultivation is possible and consumers are suitably located nearby so that fresh mushroom from the unit can be easily marketed. Total Capital Requirement: The total capital requirement including fixed capital and working capital is estimated at Rs 5,46,380 as follows. Of this, the project cost comprising fixed capital and margin money on working capital is Rs 4,64,233 lakhs. A. Fixed Capital: Land Site development Building (750 sq.ft.) Machinery Miscellaneous fixed assets Preliminary and pre-operative expenses Total (A) B. Working Capital: Raw materials & Packing material Finished goods Working expenses Receivables (Rs in lakh) Own 25,000 2,00,000 1,75,000 30,000 _15,000 4,20,000 ======= 22,300 34,800 10,280 59,000 1,26,380 ====== 5,46,380 Rs 82,147 Rs 44.233 Rs 1.26.380 ========

15 days 15 days 1 month 15 days Total (B) Total (A)+(B)

Note: Working capital may be financed as: Bank Finance (65%) .. Margin Money (35%) ..

Capital Cost of Project: Fixed capital Margin Money for Working Capital Means of Finance: Promoters contribution (35%) Term Loan (65%) Rs 1,62,482 Rs 3,01,751 Rs 4,64,233 ========== : : 4,20,000 44,233 4,64,233

Operating Expenses: The annual operating expenses are estimated at Rs 7,07,700 as given below: (Rs in lakhs) 1. Raw materials: 4,37,000 2. Packing materials 9,000 3. Utilities 15,360 4. Wages & Salaries 1,08,000 5. Other overheads 12,000 6. Selling expenses @ 5% on annual sales 59,000 7. Interest on term loan@ 13.25% 39,982 8. Interest on Bank Finance for Working Capital@12% 9,858 9. Depreciation @10% __ 17,500 7,07,700 ======= Operating profit 4,72,300

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Sales Realization: Sl.No. Particulars 1. Fresh Mushroom 2. Dry Mushroom TOTAL

Qty. 2000 Kg. 3000 Kg.

Rate (Rs) 140/300/-

Value (Rs) 2,80,000 9,00,000 11,80,000

Profitability : Based on the sales realization of Rs 11.80,000 and the operating expenses, the profit would be Rs 4,72,300 per year. This works out to a return on investment of 86%. The plant will break even at 19% of the rated capacity. Highlight: The major highlights of the project are as follows: Total capital requirement : Rs 5,46,380 Promoters contribution : Rs 1,62,482 Annual sales realization (70% cap.) : Rs 11,80,000 Annual operating expenses (70% cap.) : Rs 7,07,700 Annual profit (pre-tax) : Rs 4,72,300 Pre-tax Return on Sales : 40% Break Even Point : 19% No.of persons employed : 5 Suppliers of Machinery List of Machinery Suppliers: List of Raw Materials Suppliers: 1. M/s B. Sen & Berry & Co. 1. State Institute of Rural Development (SIRD) Jorabat, Guwahati 65/11, Rothak Road, Karol Bagh, New Delhi 110 005 2. M/s Narag Corporation 2. Shanti Sadhana Asharam P-25 Connaught Place Basistha, Guwahati Below Madrass Hotel, New Delhi 110 001 3. M/s Gardeners Corporations 6, Doctor Lane, Post Box No. 229 New Delhi 110 001 M/s K.S.J. Foods & Service (P) Ltd. 7/87, Vishnu Prasad Mehant Road, Vile Parle, Mumbai 400 057 3. Regional Research Laboratory, Jorhat.

4.

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