Vol. 9, Special Issue 10, Part V (2025)

The study was undertaken to evaluate the economic viability of oyster mushroom (Pleurotus spp.) production in Kerala, with a focus on cost and returns, factors affecting yield, and major production and marketing constraints faced by farmers. Primary data was collected from 120 oyster mushroom growers selected from six districts representing the northern, central, and southern zones of Kerala. Mushroom farmers were categorised into small, medium and large based on their scale of operation. Costs and returns revealed that total costs and yields increased with farm size, while the cost of production per bed decreased, indicating the existence of economies of scale. The benefit-cost ratio was found to be 1.08, 1.55, and 2.46 for small, medium, and large farmers, respectively, highlighting higher profitability among large-scale producers. Number of beds and type of shed were identified as major determinants of yield, emphasising the role of production scale and infrastructure in improving output. Thus, oyster mushroom production can be viewed as a profitable and sustainable agribusiness opportunity in Kerala when adequate technological, financial, and marketing support mechanisms are provided.