BUDGET ESTIMATION FOR ESTABLISHMENT OF MEDIUM LEVEL OYSTER MUSHROOM

CULTIVATION FIRM

Prepared By: Santosh Pathak, IAAS Lamjung

campus

Introduction

HVC Crop (high rate of return than Cereals/ some other cash crops)

Wide range of benefit: Economic, Nutritive, Medicinal, Environmental

Less investment: Quite Profitable

Income Opportunity: small land holders, DAGs, Women

Why Budget Estimation??

Gives a fair idea of how much money you have & investment amount

Firm commitment

Scope & extent of what need to be done

Avoid the problem of cost/budget overrun

Economic Consideration

Initial investm

ent

Earning rate

Return over

investment

Production cost

estimation

Tunnel structure

Fig. front (entrance) view Fig. length wise view

GL

Particular  

Cost detailsUnit Quantity Rate Amount (NRs.)

1 Farm building/ ware house Number 1 15000 15000

2 Water tank and pumping system Number 1 15,000/5 3000

3 Land rent Rs per kattha 2 2000 4000

4 Chaff cutter Pieces 1 30000/10 3000

5 Tunnel Plastic sheet Kg 20 260 5200/2=2600

6 Tripal Piece 3 1000 3000/2=1500

7 Sprayer Pieces (l5Ltrs) 1 2000 2000/2=1000

8 Drum Piece 3 1000 3000/2=1500

Total 31,600/-

Fixed costs

B. Variable costs  Unit Quantity

Rate Amount (NRs.)

1 Bamboo Piece 8*10 200+ 16000/2(life time)=8000

2 Mushroom Spawn Packet (250gm)

1450 50 72500

3 Rice straw Tractor 2 15000 300004 Packing plastics Kg 36 280 100805 Jute Pieces 400 35 140006 Rope (Small hanging rope) Kg 5 200 10007 Binding wire Kg 1* 10 180 18008 Fuel (timber) Bhari 140 250 350009 Alcohol/Spirit Ltr 10 80 80010 Formalin Ltr 2 120 24011 Lime Kg 10 30 30012 Management cost (Communication

+ Transportation)3500

13 Electricity charges KWh 500 9 4500Total 1,81,720/-

Variable cost

Labour cost1 Straw cutting + (washing/ cleaning + drying) Man

days8+10 500 9000

2 Tunnel preparation (Bamboo cutting + bringing + plastic covering + jute covering side wise)

Man days

4X10=40

500 20000

3 Straw filling Man days

50 500 25000

4 Harvesting + Packing+ Sanitation + Watering Man days

200 500 10000

5 Salary (Manager) Person 1 15000 month-1

180000

  Total        2,44,000/

Labour cost

S.N

Particulars Unit Quantity Rate Amount

1 Total production packet (loss~10%)

Packets 1450-145    

2 Production (About 40% production of its weight) of one pocket is assumed as 12 kg )

kg 1305X12X40%=6264

200(average)

12,52,800/-

3 By product (compost) Tractor ½ 4000 2000/-

Production return estimation

Economics of mushroom production

Particulars Amount (NRs.)

Total cost 4,57,320/-

Total return 12,54,800/-

Benefit over cost 7,97,480/-

Financial analysis

B/C ratio: =Benefit (797480)/Cost (457320)=1.74

Per unit production cost

• Total cost of production: NRs. 457320

Total yield: 6264 kg

Return from Per unit production

• Total return: NRs. 1254800/-

Total yield: 6264 kg

Net benefit from single unit (kg)

Return: 200/- Cost: 77/- Net benefit: 123/-

Acknowledgements - Mr. Ram Kumar Shrestha

Asst. Professor, Department of Plant Protection, IAAS, Lamjung

- Group Members and helping hands….

Wel-come