From Rs 250 investment to Rs 50 lakh turnover, how this Kerala woman scripted an oyster mushroom success story (2024)

Long before mushrooms became popular in Kerala, Shije Varghese from Alleppey began mushroom farming to use her spare time productively. With no background in agri entrepreneurship, she started from her home balcony.

"I had ample time when my kids grew up and were in the 8th and 10th grades. That's also when we moved into an independent house and my husband suggested I take up something to keep myself busy," recollects Shije.

Coincidentally, at around the same time, a local agriculture officer mentioned mushroom farming. “I liked the idea as it didn't require a large plot or significant investment. I joined a training session. We started small, on our balcony, where my husband helped set up a space with a shade net to create the right conditions for cultivating mushrooms," Shije tells 30Stades.

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Farmers in India grow many varieties of mushrooms including shiitake, oyster, paddy straw and button varieties. Shije decided to cultivate oyster mushrooms as they are better suited to Kerala’s climate. She procured spawns from the Regional Agricultural Research Station, Kumarakom.

Along with the paddy straw (the substrate or medium for mushroom growth) and other inputs, her initial investment was Rs 250.

She put up six beds and the first harvest was good. Shije shared them with friends and family. Since all of them liked the taste, she increased the beds to 15 and they also gave good yields.

"After six months of trial and study, my husband encouraged me to set up a farm near our home on a 600 sq ft piece of land. We put up 300 beds, but unfortunately, they all were contaminated due to excess moisture content. Losing almost Rs 1 lakh was frustrating, but my family motivated me to try again, assuring me that this failure would lead to success. I went on to interact with other mushroom farmers and learnt a lot. Then, I restarted with renewed patience and concentration," she adds.

Explaining why she chose to cultivate oyster mushrooms, Shije says the climate in Kerala is favourable for them. Button mushrooms, in contrast, require a cooler climate and require higher investment.

However, the shelf life of oyster mushrooms is relatively short and can only be stored in the fridge for up to three days.

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Oyster mushroom farming

"A dark room, good mushroom spawn and a good medium are essential for oyster mushroom cultivation,” says Shije, who won the Kerala State Award for Best Mushroom Farmer in 2020.

She initially used paddy straw as the medium and then switched to rubber tree sawdust, primarily from softwood.

“This medium decomposes fast when it is wet. And then, spawn or the mushroom seed, is added to it. After a week or more, the fungus grows in the bed and pops out of the bag. The ideal temperature is 25 degrees Celcius to 28 degrees Celsius, and the moisture content must not exceed 50 percent. In Kerala, the best farming period is from June to January, with a humidity level of 80 percent or above," Shije notes.

She uses polypropylene cover hanging bags for growing oyster mushrooms. She has also incorporated hi-tech sheds with fan and pad systems that help to maintain favourable conditions during summer.

Currently, she has put up 6,000 beds in around 3,000 sq ft, producing up to 50 kg per day.

"We practice organic cultivation, avoiding chemicals. We sterilize the medium with steam or calcium carbonate. The mushrooms take their nutrients from paddy straw and sawdust. Once the life cycle of the bed is over, it is converted into manure, so there is zero waste," the agripreneur shares.

Branding and marketing

Shije set up her brand Coonfresh (coon means mushroom in Malayalam) in 2010. She recalls that marketing was particularly challenging back then because of the low awareness about mushrooms as a food item in Kerala, especially in Alleppey, where the coastal preference for seafood made it even harder to introduce something new.

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"Gradually, people started exploring food options, and they also got to know about Coonfresh. As the demand increased, we expanded the cultivation. My family also helps manage Coonfresh's online presence to reach wider customers," Shije says.

Coonfresh mushrooms are available in popular supermarkets like Lulu, Forum in Kochi, Cochin Shipyard’s co-op, several grocery stores, and vegetable markets. People also visit the farm to buy directly.

Value-added products

Shije did not just stop with mushroom farming. In 2012, she expanded her venture with value-added products. She started selling mushroom-based products like momos, cutlets, sandwiches, pickles, and rolls, though their shelf life was short.

She also sells mushroom spawns and the substrate for farming.

According to her, there is strong demand from urban dwellers, as the base layer for growing mushrooms is easily prepared by soaking a pack of pellets in hot water for some time.

"We also plan to launch Coonvita, a health drink, soon. We have been researching with scientists to create a perfect health drink. We have enhanced mushrooms with Vitamin D and combined them with millets. It comes in a few flavours. I am sure it will attract health-conscious people. The aim is to address the vitamin D deficiency across all age groups," she says.

Revenue and Recognition

Coonfresh sells a 200g box for Rs 60 and Rs 70 in wholesale and retail respectively.

"The input cost for one bag is around Rs50-55, and we can get about 700g to 1 kg from one bag. Our annual turnover is around Rs50 lakh," Shije shares.

She also plans to support small-scale mushroom farmers by buying mushrooms from them, providing fair revenue for those without access to big markets. In addition to selling value-added mushroom products, Shije offers mushroom farm consultation services and conducts three-hour training classes for Rs500 each.

According to Shije, winning the State Award was a special recognition and encouragement. "Starting when few knew about mushroom farming, we've made a name for ourselves in this sector. I consider this award a recognition not just of our farming success, but also of my role as a tutor, having trained over 15,000 people. Today, I am happy to see many young individuals excelling in mushroom farming. Anyone can take up mushroom farming. It requires patience to master the skill and continuous effort to care for it," Shije signs off.

(Chandhini R is a Kerala-based journalist specialising in human interest, entertainment, and art and culture stories)

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