With a great deal of constraints such as heavy dependence on weather, small and fragmented land holdings, depleting resource, demand shift etc. faced by traditional Indian agriculture, farmers are shifting towards allied enterprises. Mushroom is one such enterprise which provides remunerative and nutritive produce with less-land and investment requirements. Hence, the present study assessed the economic performance of the Shiitake mushroom production in terms of cost & return analysis, viability analysis and BEP assessment using primary data. The overall net returns were ` 235/ bag/ cycle of Shiitake with rate of return on capital of 1.93 showing the economic viability of the enterprise. It was also found that larger units of Shiitake mushroom were more viable and economically sound as compared to smaller and medium units. Since lesser land and other resources are required for Shiitake mushroom with higher returns and good nutritive value, such mushrooms ought to be promoted for adoption at large scale to alleviate poverty and nutritional insecurity of vulnerable Indian population.

Highlights

• The variable cost per bag was highest for small units (` 60/ bag) followed by medium (` 49/ bag) and large (` 36/ bag) units.
• Law of economies of scale was operating in the farm with returns over variable costs (ROVC) being highest for large units (` 255/ bag) followed by medium (` 229/ bag) and small (` 219/ bag) units.
• The larger units were highly viable with a rate of return of 3.33 and a BCR (Benefit-Cost Ratio) of 1.49.
• The BEP quantity for small, medium, and large Shiitake mushroom units was 14 Kg, 16 Kg, and 1050 Kg, respectively.