Muskan Mushroom Group: Growing Mushrooms in Bags

The Problem and Motivation Behind

“My income and my living conditions have really improved. Earlier, life was difficult, but this business has made a difference.” – Neeraj.

Neeraj Kumar (22-year-old)  and his team grew up in a rural area of India where traditional farming depends heavily on the climate and changing seasons. Many young people in his community did have a stable income and had limited access to higher education, leaving them with few opportunities to earn a living. Neeraj himself had also faced financial struggles, which motivated him to explore business ideas that could work with limited resources.

The Innovative Solution

“I was trained as a mushroom farmer and now I’ve planted 200 bags of oyster and 200 bags of button mushrooms … We do it in bags. It takes about 20 to 25 days to harvest, and about one and a half to two months for a full cycle. I’m now earning 15,000 to 20,000 Rupees (about $230) per month from mushroom farming.” – Neeraj

When Neeraj and his team joined the Youth Innovation and Action Lab (YIAL), they explored different business ideas to develop with their limited resources.  With support and guidance from the Lab mentors, they found out that mushroom cultivation can be an innovative solution—it requires very little land, involves low investment, and offers good returns.

Through practical experimentation, they learnt the best techniques for growing oyster and button mushrooms using locally available materials. They then developed a low-cost, space-efficient mushroom cultivation system using grow bags, making it possible to farm even without owning agricultural land. It takes about 20–25 days to start seeing results, and around 1.5 to 2 months for a full harvest.

They began on a small scale, with just 200 bags of two mushroom varieties. By carefully monitoring environmental conditions, adjusting their methods based on the weather, and learning how to time their harvests efficiently, they steadily improved the quality and yield of their produce. As their confidence grew, so did their customer base. They sold mushrooms in local markets and directly to customers, keeping costs low and turning a profit quickly. Today, Neeraj and his team members earn between 15,000 to 20,000 Rupees (about $230) each month from mushroom cultivation.

Lessons Learned and Addressing Challenges

“This income has really benefited me… We’ve learnt that agriculture doesn’t have to be traditional. It can be smart.” – Neeraj

The Youth-led Innovation Action Lab supported Neeraj and his team by providing training and mentorship that introduced them to improved methods of mushroom cultivation. The support went beyond farming techniques—it also covered financial planning, record-keeping, and how to respond to changing market demands, helping them build a sustainable and well-organised business.

Reflecting on their experience, Neeraj identified a lesson learned:

  • Overcoming doubts and learning from trial and error: At first, the group faced scepticism—mushroom farming was unfamiliar, and many doubted its potential. They also had to navigate environmental challenges, as maintaining the right temperature and humidity was essential for success. Early mistakes taught them the value of consistency, cleanliness, and continuous learning.  “We had to experiment and adjust a lot. But we’ve learnt. Now we are doing very well,” Neeraj shared.

Next Steps and Future Aspirations

“We are expanding. Our goal is to grow, train others, and scale the model. We want to reach 1,500 bags soon.” – Neeraj

Neeraj’s vision goes beyond his own profit. He and his team are working towards creating a local mushroom farming network that supports other young farmers to replicate their success. Their future goals include investing in cold storage, building direct links with retailers, and offering training to rural youth who want to break into sustainable farming.

Neeraj also aspires to develop value-added mushroom products in the long run—such as dried mushrooms or mushroom-based snacks—which would allow them to access urban markets and reduce post-harvest loss.