A comprehensive economic study of production and marketing of mushroom in Varanasi district, Uttar Pradesh, India

Abstract

This study examines the economic performance, cost structures, and pricing dynamics of mushroom farming across different farm sizes. Small farms generate a gross income of ?205,450, medium-sized farms yield higher outputs of 5,500 kg of the main product and 12,600 kg of by-products, and large farms achieve the highest gross income of ?521,940. Larger farms benefit from economies of scale, leading to higher income but also a reduction in efficiency. Small farms have the highest efficiency, but larger farms face higher input costs, especially in compost, spawn, and labor. Despite higher marketing expenses, larger farms maintain consistent prices received by the grower, with consumer purchase prices remaining stable at ?120 across all farm sizes. The study suggests that while larger mushroom farms offer greater profitability due to scale, they also encounter diminishing returns in terms of operational efficiency. The study offers valuable insights into the trade-offs between scaling up production and maintaining efficiency in mushroom farming.