From Rs 10,000 to Rs 3 crore: How 2 Punjab brothers built a high-yield mushroom empire

The family says the mushroom enterprise produces 500 kg each of spawn and fresh mushrooms daily, worth around Rs 95,000, and generates more than Rs 3 crore in annual turnover, with a profit margin of around 15 per cent after meeting expenses. This, according to the family, is more than 20 times the revenue generated from its remaining roughly 15 acres, where it grows traditional crops such as wheat, potato and paddy.

“We now use nearly 4,000 quintals of paddy straw annually as the basic raw material for mushroom production,” said Sanjiv Singh, adding that they gradually expanded their operations, developing expertise not only in mushroom cultivation but also in producing their own quality spawn.

“We prepare the Holland and US spawn varieties as we get the supply of cultivation materials from Holland and the US,” said Harmanpreet Singh, 29, son of Sanjiv Singh.

Mix of tradition with modern practices

Harmanpreet joined the family enterprise after completing his BBA and receiving mushroom-cultivation training in India and New Zealand. Rather than pursuing a conventional job, he chose to return and work with his father.

His involvement has helped the family move towards an organised agri-business model that combines traditional farming knowledge with modern management and marketing practices, said Sanjiv Singh.

“The enterprise primarily produces button mushrooms, enabling year-round cultivation under controlled indoor conditions. Its products, including fresh mushrooms and mushroom spawn, are supplied through dealers to markets across Punjab, including Jalandhar, as well as Jammu and surrounding areas,” said Harmanpreet Singh.

The family established its own laboratory for spawn production in 2008, the first such laboratory in the state, thereby reducing its dependence on outside suppliers.

“The unit has a production capacity of around 500 kg each of fresh mushrooms and mushroom spawn daily,” said Harmanpreet Singh, adding that the wholesale price of mushrooms and spawn varies according to market conditions and generally remains around Rs 90-100 per kg.

Spawn production involves controlled preparation of the growing medium and careful management of temperature, pH, moisture, and sterilisation, said Harmanpreet, adding that, initially, the income from the mushroom venture was reinvested to expand the business and set up proper indoor facilities.

The family owns about 17 acres of agricultural land, of which about 1.5 acres are devoted to the mushroom venture and related infrastructure.

The remaining land is used for conventional crops including wheat, potato and paddy.

The family’s message is that conventional cropping alone offered limited scope for substantially increasing farm income. But cash crops like Mushroom cultivation provided an opportunity to generate higher returns from a much smaller area while also creating employment.

The family’s mushroom enterprise received a national award in 2008 and 2015, followed by state-level recognition, including the Rattan-e-Bagwani award in 2021.

Over the years, the family has also trained and guided farmers interested in mushroom cultivation, sharing practical knowledge covering growing-medium preparation, sterilisation, spawn production, temperature control, harvesting, grading, packing and marketing.