What is the cost of a 500 kg/day mushroom farm in India?

Ten 18×40 ft rooms (530 kg/day) with one 30 T compost unit come to ₹1.16 crore ex-GST, ₹1.37 crore with 18% GST, on rate card v2.92: grow rooms ₹38.8 lakh, Daikin cooling ₹33.8 lakh, air handling ₹5.4 lakh, racks and additional works ₹31.2 lakh, compost unit ₹7.1 lakh. Civil works, plinth and boundary are client scope.

How much land is needed for a 500 kg/day mushroom farm?

About 1.5–2 acres for an integrated unit: grow rooms with their outdoor units behind them, the compost yard (bunkers, tunnel, wetting slab, straw store), casing yard, grading and dispatch, cold room, packing and parking. With bought-in compost, much less.

Is integrated compost worth it at 500 kg/day?

Own compost costs about ₹73.6/kg of mushroom against ₹94.4 bought in, so it saves about ₹39.9 lakh a year at this size. The 30 T unit's equipment is ₹7.1 lakh; its civil works are client scope.

What is the profit margin on a 500 kg/day mushroom farm?

At ₹120/kg the farm sells about ₹19.2 lakh a month; production cost with own compost is ₹73.6/kg, leaving about ₹7.4 lakh a month (39% margin), before tax and loan interest. The quotation pays back in about 19 months.

How many workers are needed for a 500 kg/day farm?

About 22–28 workers: 12–16 for grow rooms (picking, casing, watering), 4–6 for the compost yard, 2 for spawning at filling, 3–4 for grading and dispatch, plus 1 farm supervisor + 1 production manager.

A finished MushroomWale PUF panel grow room with its door, controller and cooling units

Mid-Scale Integrated Project

500 kg/day Mushroom Farm Setup in India — Cost, BOQ & ROI (2026)

An integrated turnkey unit for serious operators: ten 18×40 ft PUF grow rooms, a 30 T Phase-1/2 compost unit, Daikin refrigeration and a bankable DPR. Quotation ₹1.16 crore ex-GST, paying back in about 19 months.

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The short answer

How much does a 500 kg/day mushroom farm cost in India?

A 500 kg/day integrated farm (ten 18×40 ft rooms and one 30 T compost unit) comes to ₹1.16 crore ex-GST, ₹1.37 crore with GST, on rate card v2.92: PUF rooms, Daikin cooling, air handling, racks and additional works, and the compost unit. Civil works, plinth and boundary are client scope.

BOQ — What's Included

Item	Quantity	Cost Range
PUF panel grow rooms (10 × 18×40 ft), section A	10 rooms	₹38.8 lakh
Daikin refrigeration, 10 × 8 TR, section B	10 sets	₹33.8 lakh
Air handling: ducts, dampers, filters, section C	10 rooms	₹5.4 lakh
MS angle racks + additional works, section F	10 rooms	₹31.2 lakh
Compost unit 30 T: bunkers, tunnel, blowers	1 unit	₹7.1 lakh
DPR + handholding + cycle training	Included	EPC scope

Indicative. Final BOQ per master rate card v2.92 (Oct 2026), 5-day quote validity. GST 18% & transport extra.

Economics & Payback

Quotation total (ex-GST)₹1.16 crore

Quotation total (incl. 18% GST)₹1.37 crore

Civil, plinth and boundaryClient scope, priced in your DPR

Subsidy under MIDH (40%)Up to ₹12 lakh per unit, as on /subsidy

Daily harvest (steady state)~530 kg/day

Farm-gate rate (site model)₹120/kg

Monthly revenue₹19.2 lakh

Monthly production cost₹11.8 lakh

Payback on the quotation19 months

Why 500 kg/day is the Sweet Spot

Justifies in-house Phase-1/2 compost — production cost falls from ₹94.4 to ₹73.6/kg
Workforce of 22–28 manageable by a single production manager + farm supervisor
Daily harvest large enough for direct mandi/HORECA contracts (no aggregator margin loss)
Modular: rooms can be brought online in waves so cash flow ramps before full debt service
Bank-financeable at 65–70% LTV with the bankable DPR we provide

Frequently Asked Questions

Related Resources

← Smaller: 100 kg/day project → Scale up: 1 ton/day project → Bankable DPR for loan

The company behind the build

Why Choose MushroomWale

01
Engineering Expertise
Agrimotion Engineering Private Limited is a registered EPC company (CIN U43900UP2023PTC185328, GSTIN 09AAZCA0158R1ZP) based in Firozabad, Uttar Pradesh.
02
Proven Track Record
Turnkey mushroom projects from a 2-room starter to a 20-room commercial farm.
03
Bank-Recognized DPRs
Bank-format DPRs prepared to NABARD, NHB and MIDH norms for loan and subsidy applications.