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

In 1995, two brothers from Budhipind village in Punjab invested around Rs 10,000 and 10 quintals of paddy straw to start a mushroom cultivation venture. Today, their agri-business enterprise is valued at over Rs 3 crore annually, employing nearly 32 people and operating on just 1.5 acres of land. The brothers, Sardar Sanjiv Singh and Rajinder Singh, initially experimented with mushroom cultivation, which has since grown into an integrated enterprise.

They produce 500 kg of spawn and fresh mushrooms daily, generating around Rs 95,000 in revenue each day, and contribute to an annual turnover exceeding Rs 3 crore, with a profit margin of 15 percent.

Sanjiv, 59, and Rajinder, 55, employ nearly 32 individuals and cultivate mushrooms year-round using indoor facilities. The family prepares both Holland and US spawn varieties, as they source their cultivation materials from these regions. Harmanpreet Singh, 29, a son of the family, joined the business after completing his BBA and receiving training in mushroom cultivation in India and New Zealand.

This move towards an organized agri-business model has helped the family combine traditional farming knowledge with modern management and marketing practices.

The mushroom venture began in earnest with the establishment of a spawn production laboratory in 2008, the first of its kind in the state. The unit can produce 500 kg each of fresh mushrooms and spawn daily. The wholesale price of mushrooms and spawn varies according to market conditions but generally remains around Rs 90-100 per kg. The family owns 17 acres of agricultural land, with about 1.5 acres dedicated to the mushroom venture. The remaining land is used for traditional crops such as wheat, potato, and paddy.

Their mushroom enterprise has received national and state awards, including the Rattan-e-Bagwani award in 2021. The family also shares knowledge with other farmers interested in mushroom cultivation, providing guidance on growing-medium preparation, sterilisation, spawn production, temperature control, harvesting, grading, packing, and marketing.