What does a mushroom production unit include?

A typical unit includes PPGL PUF-insulated grow rooms with racking, climate-control machinery (cooling, humidity, fresh-air), a compost handling area, a grading and dispatch area and a cold room for harvested mushrooms. Spawn is mixed in as the compost is filled and the spawn run happens inside the grow rooms, so no separate spawn lab is needed. Larger units add their own compost unit.

How much does it cost to set up a mushroom production unit in India?

From the quotation engine, incl. GST @18%: two 18×40 ft rooms on bought-in compost ₹26.2 lakh, paying back in about 32 months; six rooms with a 20 T compost unit ₹85.6 lakh, about 20 months; ten rooms with a 30 T unit — our 500 kg/day project, 530 kg/day — ₹1.37 crore, about 19 months. Cold room, civil works, land and transport are extra.

How much can a mushroom production unit produce?

Output depends on room count. An 18×40 ft room holds 1,600 bags at 2 kg a bag per 60-day crop, six crops a year; an 18×60 ft room holds 2,500 bags. Six 18×40 ft rooms produce about 115 tonnes of fresh mushrooms a year (318 kg/day).

Is a mushroom production unit eligible for subsidy?

Yes. MIDH pays 40% of fixed cost norms (50% in NE and Himalayan states and Scheduled Areas): up to ₹12 lakh on a production unit, ₹12 lakh on a compost unit and ₹8 lakh on a spawn unit, credit-linked and back-ended. NHB is the alternative for units above 50 MT (35% of ₹75,000 per tonne), never both on one project. NABARD pays no subsidy; it refinances the bank loan. We prepare bankable DPRs covering the full unit — grow rooms, compost and cold storage.

How long does it take to build a mushroom production unit?

Our A2 quotation's term is a 60–90 day work cycle from the advance and a ready site to commissioning. The site is ready when the plinth, power, water and access are in place (client scope); the survey, DPR and loan papers come before that.

Can I start small and expand the production unit later?

Yes. We design units modularly so you can begin with 2-4 grow rooms and add more rooms, a compost unit or cold storage as demand grows — reusing the same PPGL PUF panel system throughout.

Do you build production units for varieties other than button mushroom?

Yes. We design units for button (Agaricus bisporus), oyster, milky, and specialty mushrooms. Climate parameters and layout are tuned to the target crop.

Button mushrooms cropping on bags stacked on racks in a MushroomWale grow room

Integrated Turnkey Unit

Mushroom Production Unit Setup in India

A complete mushroom production unit — climate-controlled grow rooms, compost supply, grading and dispatch, and cold storage — engineered for year-round cultivation. From ₹26.2 lakh incl. GST for two 18×40 ft rooms.

Design My Unit Get Quote

GSTIN 09AAZCA0158R1ZP·Production units built·Turnkey EPC·Modular & Scalable

The short answer

What Is a Mushroom Production Unit?

A mushroom production unit is a complete, climate-controlled facility that brings every stage of commercial mushroom cultivation under one roof — insulated grow rooms with racking, compost supply, a grading and dispatch area, and post-harvest cold storage. Spawn is mixed in as the compost is filled and runs inside the grow rooms. Built with PPGL PUF panels and Daikin climate control, a production unit enables year-round growing independent of outside weather, turning mushroom farming into a predictable, scalable business.

What's Inside a Production Unit

Climate Grow Rooms

PPGL PUF rooms with cooling, humidity, fresh-air

grow room specs

Compost / Substrate

On-site compost unit or substrate handling

compost units

Grading & Dispatch

Harvest exit: grading, packing and dispatch beside the cold room

Cold Storage

Post-harvest cold room for shelf life & pricing

cold storage

Production Unit Scope — What We Deliver

Complete EPC from design to commissioning.

Site layout & engineering design

PPGL PUF insulated grow rooms

7-tier MS growing racks

Daikin climate-control machinery

Humidity & fresh-air (CO₂) management

Compost unit or substrate area

Grading & dispatch area

Post-harvest cold room

Electrical panels & power distribution

Water & drainage provisioning

Commissioning & operator training

Bankable DPR for subsidy/loan

Civil works and boundary are client scope. GST @ 18% and transport are extra.

Cost & return

Mushroom Production Unit Cost in India (2026)

Production unit cost scales with the number of grow rooms and whether the unit makes its own compost. Each row is the same farm our quotation engine prices, with the payback it earns on our cost model.

Unit	Investment, incl. GST	Output	Payback
Starter: two 18×40 ft rooms, compost bought in	₹26.2 lakh	38 t/year (106 kg/day)	About 32 months
Commercial: six 18×40 ft rooms + one 20 T compost unit	₹85.6 lakh	115 t/year (318 kg/day)	About 20 months
Integrated: ten 18×40 ft rooms + one 30 T compost unit	₹1.37 crore	192 t/year (530 kg/day)	About 19 months
Large: ten 18×70 ft rooms + two 30 T compost units	₹2.03 crore	360 t/year (1,000 kg/day)	About 15 months

MushroomWale's full scope (PPGL PUF panels, Daikin cooling, air handling, additional works, 7-tier MS racks) plus the compost units listed, incl. GST @18%. Payback at ₹120/kg: bought-in compost for the starter, own compost where a unit is included. Cold room, civil works, land and transport are extra. MIDH pays 40% of cost norms — up to ₹12 lakh on a production unit and ₹12 lakh on a compost unit — or NHB by capacity above 50 MT, never both. NABARD pays no subsidy.

Design My Production Unit

Subsidy & Financing for Your Production Unit

Under MIDH a production unit gets 40% of the ₹30 lakh cost norm — up to ₹12 lakh — and a compost unit up to ₹12 lakh, credit-linked and back-ended. Above 50 MT, NHB is the alternative, never both. NABARD pays no subsidy; it refinances the loan. PMEGP margin money suits compost and processing units. We prepare bankable DPRs covering the entire unit for the subsidy claim and the project loan.

NABARD Loan Guide Subsidy Explorer PMEGP Guide

Case study

Case Study: 6-Room Production Unit Running Year-Round

Representative photo of white button mushrooms, close up — Representative photoWhite button mushrooms, close up

Integrated Production Unit — Bihar

Location: Patna, Bihar
Configuration: 6 grow rooms + cold room
Investment: ₹62 Lakh
Output: ~22 T fresh / year

Having grow rooms, spawning, and a cold room in one unit means we crop every month regardless of season. It turned a seasonal hobby into a real business.
— Client, Patna

Mushroom Production Unit FAQs

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.