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Economics

of
button mushroom
production

Sudheer Kumar A
Scientist
Farming and/or Business

• “Converting cash into non cash items and


again converting into better cash”

• For successful organization of a business and


for optimum use of resources, it is important to
first understand the characteristics of that
business
Business Principle

WHAT I
WHAT I WHAT I AM
HAVE CAN EXPECTI
AFFORD NG
Farming as a business
Pros Cons
1. Primary forces of production 1. Frequency and speed of
2. Inelastic demand for decisions
conventional farm products 2. Cost structure
3. Standardization of practices 3. Time rigidity in
4. Size of the production unit. consumption of perishable
5. Turn over and financing products
Decision making process
“Conceiving optimum plans out of many alternatives and
narrowing their outcome to reasonably expected norms”

(So sensible)
Project based study
• “A specific activity involving use of resources to achieve
specific objectives (benefits) within a specific area and
period”.

Need of a project based study


• Investments are made now in anticipation of larger
income in future and up to the economic life of the
project.
What exactly a project will
define
1. Technical appraisal
2. Economical appraisal
3. Financial appraisal
4. Managerial appraisal
Key factors for the preparation
of a viable project
1. Estimation of project cost
2. Cost of production and profitability
3. Cash flow statement
4. Discounted cash flow statement
5. Projected profit and loss account
6. Balance sheet projection
7. Debt service coverage ration
8. Repayment schedule
9. Break even analysis
Major commercial units of Button Mushroom in India

Unit Name State Mushroom Production


Himalya International Ltd. Gujrat Button 10,000 T
Vadnagar
Paonta Sahib HP Button 4000 T
Tirupati Balaji Agro Products Pvt. Maharashtra Button 4000 T
Ltd
Agro-Dutch Punjab Button 4000 T
Weikfield Foods Pvt. Ltd,.Pune Maharashtra Button 4000 T

Flex Foods Ltd. ,Dehradun Uttarakhand Button 2600 T

Welkins Overseas Pvt Ltd. Roorkee Uttarakhand Button 500 T

Zuari Agro Farm Goa Button 6000 T


Goa

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