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This study was conducted in Kathmandu valley, capital of Nepal and related with actual condition of mushroom farming. This study is focused in mushroom farming in Balambu, Matathirtha and Thankot of Chandragiri municipality. Cost benefit ratio was an important task of this research work so that actual condition of mushroom farming can be explored. 33 farmers were taken as a sample with random sampling technique of this study. Data were collected from 2016-2020, it was found that total production and productivity decline. 692 kg of production is breakeven point (cut off point) in 12 x 30 x 8 meter tunnel implies at least 692 kg of mushroom should be produced to stay in production. Area of mushroom cultivation decreased as well as production per ball decreased from 4 kg to 2.7 kg. The study reveals that benefit from mushroom farming is decreasing in Kathmandu valley. Indian farmer can produce in cheaper cost than in Nepal and labor became more expensive due to outflow of domestic labor.
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