Waste to wealth via milky white mushroom

Introduction

Mushrooms are also called white vegetables or boneless vegetarian meat having rich amount of proteins, vitamins and fibres. Milky white mushroom (Calocybe spp.) is the first Indian mushroom variety commercialized by IIHR, Hesaraghatta suitable for cultivation round the year. In malnad and semi-malnad regions, paddy is the predominant crop and its byproduct ie, straw is available in sumptuous quantity which could be used as a suitable substratum for production of mushroom. Mushroom has got capacity to convert ligno-cellulose which is enormously present in paddy straw or other byproducts of agricultural crops into protein rich biomass. Thus, mushroom production could be regarded as an eco-friendly alternative for efficient management of agricultural wastes. Mushroom production not only reduces environmental pollution but also generates employment and sustains livelihood of many rural poor. In the recent past, awareness among consumers about medicinal properties of mushroom has escalated its demand. The demand usually comes from those consumers who are suffering from hypertension and diabetics. Milky white mushroom possesses 32.3 percent protein on dry weight basis and fetches better price compared to oyster mushroom. It is also in demand because of its suitability in preparation of pickle, soup powder, canned and dried mushrooms.

Significance of the study

It is imperative to probe into economics of milky white mushroom production which serves as an efficient way of managing agricultural wastes in malnad and semi malnad regions of Karnataka having sumptuous supply of paddy wastes. In addition, exploring of marketing prospects of milky white mushroom is also equally important. With this backdrop, the present study was tailored with the following specific objectives 1. To examine the profitability of milky white mushroom production. 2. To examine and identify the efficient marketing channel for milky white mushroom production.

Methodology Study Area

Paddy is the predominant crop in the malnad and semi malnad regions of Karnataka. It is exclusively being used as fodder in dairy enterprise. In addition to this, paddy straw can be efficiently used as a substratum in milky white mushroom production which not only enables management of wastes but also earns substantial returns. It could be regarded as an efficient way of converting waste into wealth. To empirically assess this hypothesis, a study has been conducted in malnad and semi malnad regions of www.extensionjournal.com Karnataka wherein prospective mushroom growers have utilized paddy straw for production of milky white mushroom.

Sampling

A sample of five milky white mushroom producers were selected following snow ball sampling. Snow ball sampling was followed since mushroom production was an uncommon enterprise in the locality. At first, a particular respondent known for milky white mushroom production in the locality was selected and from him the details of other respondents involved in the same venture was elicited.

Methodology

The primary data pertaining to capital investment made on the unit, material inputs used in the production of milky white mushroom like paddy straw, spawn etc., labor use pattern, yield obtained, returns realized, middlemen involved in marketing of mushroom etc., were elicited using pretested interview schedule.

Empirical analysis

The data were analyzed using simple ratios, averages, enterprise budgeting techniques and market efficiency measures. Enterprise budgeting is the summary of costs, returns and profit associated with the enterprise. Total costs comprises variable and fixed costs. Variable costs included expenditure on labour, inputs like paddy straw, spawn, bleaching agents, cocopeat, polythene covers etc. Fixed costs included depreciation of assets, interest on fixed capital invested on the unit and rental charges of the land utilized for mushroom production. Gross returns was arrived at by multiplying production with the prevailing price of mushroom. Net returns or profit was arrived at by subtracting total costs from the gross returns. Benefit cost ratio was estimated by taking the ratio of gross returns and total costs. Extent of wealth generated from waste was assessed by considering the cost incurred on paddy waste and net returns/gross returns earned from the production of mushroom.

Marketing efficiency was assessed using Shephard's and Acharya's approaches. Shephar''s approach was obtained by dividing retailer's price with summation of marketing costs and margins. Acharya's approach was obtained by dividing net price received by producer by summation of marketing costs and margins. The values of these measures are expected to be higher to say that market channel is efficient.

In addition to these measures, price spread (Marketing costs + Marketing margins) and producer's share in consumer rupee was estimated to reflect the efficiency of marketing channel.

Results and Discussion

Capital investment on the production unit

The details pertaining to capital investment on milky white mushroom production is presented in Table 1. The capital investment mainly included investment on rearing house, bore well, wooden racks, chaff cutter, fogger system, sprayers and other miscellaneous items. The total capital investment came to Rs. 4, 39,356. The investment on rearing house at Rs. 268000 (60.99%) formed the major chunk of the total investment. Construction of rearing house in scientific manner is crucial since it decides the quality of mushroom production. The dimension of rearing house is 25' X 40' capable of housing 600 bags per month. The wooden structure made out of bamboo will serve as platform for culturing mushroom. The investment on this structure came to Rs. 47000 (10.70%). As mushrooms prefer dark and humid environment, humidifiers (fogger system) was used to maintain optimum temperature/ air humidity. The optimum temperature of 30 to 35 0 c and relative humidity of 80 to 90 percent is desirable for better growth of mycelium. The investment on this system came to Rs. 21000 (4.78%). The investment on chaff cutter came to Rs.15000 (3.41%) and it enables mushroom growers to prepare paddy straw of desired length which serves as substratum for the growth of mycelium.

Economics of milky white mushroom production

The details pertaining to variable costs, fixed costs and returns from milky white mushroom production is presented in Table 2 and Rs. 617259 (net returns). The extent of profit realized demonstrates the remunerativeness of this venture. Thus, it could be concluded that mushroom cultivation can be practiced as a subsidiary occupation thereby by-products of agricultural activity could be efficiently reused to generate assured income and employment opportunities.

Marketing of milky white mushroom

Milky white mushroom reaches ultimate consumer through different marketing channels. The producer sells mushroom to ultimate consumers through local retailers or retailers located in distant places. Thus, the existing marketing channels are Producer to local retailers to consumers (MC-I) and Producer to retailers located in distant place to consumers (MC-II). The later marketing channel was considered as predominant channel since demand for the produce arises in far off places rather than in production hub. The per kg retail price of mushroom was Rs.200. Intermediaries such as producer and retailers incurred marketing cost towards packing, transportation, refrigeration, packing materials, labor and rental value. The marketing cost incurred in case of MC-I and MC-II came to Rs. 13.30 and Rs. 18 per kg, respectively (Table 3). The net price received by producer in case of MC-I and MC-II came to Rs. 155 and Rs. 150.15 per kg. The efficiency of marketing channel is reflected in terms of price spread and producer share in consumer rupee. The price spread was lower in case of MC-I (45) as against MC-II (49.85) and similar trend was observed in case of producer share in consumer rupee. The producer share in consumer rupee was 77.50 percent in case of MC-I indicating that producer gets 77.50 percent of what consumer pays. Acharya's and Shephard's approach were also performed to assess marketing efficiency. Higher the index value efficient is the marketing channel. The higher index was observed in case MC-I compared to MC-II. Thus, MC-I could be regarded as efficient marketing channel. Though, MC-I is efficient but it lacks market penetration hence, producer should have to exercise suitable marketing strategies to position and penetrate product in local market for exploration of better profits (Basanta et al., 2012) [1] .

Conclusion

Milky white mushroom production was found to be an economically efficient way of converting paddy wastes into wealth since every rupee of expenditure incurred on its production yielded gross returns of Rs. 2.25. Paddy waste of worth Rs. 40004 was converted into wealth of Rs. 1109600 and Rs. 617259 in terms of gross and net returns, respectively. Enterprise has generated employment of 365 mandays to rural labour folk.

Policy Implications

Considering the profitability and employment generation potential of the enterprise, prospective entrepreneurs should be encouraged through provision of production related subsidies for availing technical inputs, construction of production unit and arranging for organized marketing and value addition. Capacity building programme may be tailored to attract more of rural jobless youth towards this enterprise enabling to contain their migration from agriculture.

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