How to Apply for a Mushroom Farming Subsidy in India
A comprehensive guide to every government subsidy and loan scheme available for mushroom farming in India. From MIDH, NHB and PMEGP to state programs — eligibility, application process and maximum benefits, every rate read from the MIDH Operational Guidelines 2025, the NHB Operational Guidelines and NHB Public Circular of 21 August 2026. The full cited ledger is on our subsidy page.
What Government Subsidies Are Available for Mushroom Farming in India?
Two national schemes pay toward a commercial mushroom farm, and one project may use one of them, not both. MIDH pays private applicants 40% of fixed cost norms: up to ₹12 lakh on a production unit, ₹12 lakh on a compost unit and ₹8 lakh on a spawn unit (50% in NE and Himalayan states and Scheduled Areas). NHB prices an integrated unit at ₹75,000 per tonne of capacity above 50 MT, at 35% (45% in special areas), up to ₹78.75 lakh. PMEGP gives 15–35% margin money on projects up to ₹50 lakh. NABARD pays no subsidy; it refinances bank loans. State top-ups exist in some states and must be confirmed with the district horticulture officer.
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Disclaimer: Subsidy amounts, eligibility criteria, and processes are indicative and subject to change by respective government departments. Always verify current details with your district agriculture/horticulture office before applying.
Subsidy Schemes — Quick Comparison
| Item | Our | Market |
|---|---|---|
| MIDH (production unit) | 40% of ₹30 lakh norm | Up to ₹12 lakh |
| NHB (integrated unit) | 35% of ₹75,000/MT | Up to ₹78.75 lakh |
| PMEGP margin money | 15–35% | Projects up to ₹50 lakh |
| NABARD | No subsidy | Refinances bank loans |
Central Government Schemes
MIDH (Mission for Integrated Development of Horticulture)
Max Amount: ₹12 lakh on a production unit, ₹12 lakh on a compost unit, ₹8 lakh on a spawn unit (₹15 lakh / ₹15 lakh / ₹10 lakh at 50%)
Eligibility: Private applicants: farmers, entrepreneurs, SHGs, FPOs. Land ownership or a registered lease.
Process: State horticulture portal → SLSC approval → build → inspection → credit-linked, back-ended release by DBT
Timeline: Back-ended: released after the unit is built and inspected. Credit linkage is optional for projects up to ₹30 lakh (Annexure V, closing note).
Documents: Land papers, Aadhaar, PAN, bank passbook, DPR, quotations
NHB — Integrated Mushroom Production Unit
Max Amount: ₹75,000 per MT (₹85,000 with canning) for capacity above 50 MT and up to 300 MT: at most ₹78.75 lakh (₹1.0125 crore in special areas)
Eligibility: A sanctioned bank term loan is compulsory. At 50 MT or below this item pays nothing.
Process: Bankable DPR → term loan sanction → NHB Grant of Clearance → build → claim. Building before the Grant of Clearance gets the application rejected.
Timeline: Credit-linked and back-ended: released into the term-loan account after commissioning
Documents: DPR, term-loan sanction, land papers, non-availment declaration from NHM/MIDH
PMEGP (Prime Minister's Employment Generation Programme)
Max Amount: Projects up to ₹50 lakh
Eligibility: Compost units, spawn labs and processing — manufacturing, not a cultivation shed. New units only.
Process: Apply online at kviconline.gov.in → DIC/KVIC review → bank loan sanction → margin-money subsidy credited
Timeline: Credited against the bank loan after sanction
Documents: Aadhaar, PAN, education certificate, DPR, category certificate if applicable
NABARD
Max Amount: Refinances the bank that lends to you
Eligibility: Refinance to banks, and the unit costs banks lend against. Useful — it is often why your term loan is sanctioned at all — but it is finance, not a grant.
Process: Apply for the term loan at your bank; NABARD refinances the bank, not you
Timeline: As per the bank's loan appraisal
Documents: Land documents, project report, bank statements, income proof
Agriculture Infrastructure Fund (AIF)
Max Amount: On up to ₹2 crore of loan for 7 years — a loan benefit, not a grant
Eligibility: Cold storage, pack houses, spawn labs and processing financed on a term loan
Process: Apply on agriinfra.dac.gov.in with your lending bank
Timeline: Runs over the loan term
Documents: DPR, loan sanction, land papers
PM-RKVY
Max Amount: State Annual Action Plan items only
Eligibility: A state may still approve a mushroom item in its Annual Action Plan: Andhra Pradesh approved one at Rs 30 lakh in March 2025. But it is priced by CPWD or State PWD norms and an SLSC reasonableness certificate, not by a published RKVY rate. Ask your State Agriculture Department whether this year’s plan carries one.
Process: Ask your State Agriculture Department whether this year's plan carries a mushroom item
Timeline: Per the state's plan cycle
Documents: As the state department specifies
State-Wise Subsidy Summary
| State | Scheme | Subsidy |
|---|---|---|
| Bihar | Mushroom kits | 90% (₹75, ₹90 or ₹300 a kit by type) |
| Andhra Pradesh | PM-RKVY Annual Action Plan item | One mushroom item approved at ₹30 lakh, March 2025 |
| All other states | State top-ups | Exist in some states; confirm with your district horticulture officer before you count them |
*We publish a state figure only when we have read it in a primary document. State schemes change every year; confirm with your district horticulture office before you count one. See state-specific guides: Haryana, UP, Maharashtra
Related Resources
Subsidy, every figure cited
MIDH, NHB, NABARD and more
Detailed Subsidy Guide
In-depth MIDH/PMEGP guide
NABARD Loan
Agriculture term loan
PMEGP Project
Margin money scheme
DPR Preparation
Bank-ready DPR template
Profit Analysis
ROI with subsidy
Design Generator
Free project report
Business Plan
Complete DPR template
Cost Breakdown
Setup cost details
Turnkey Setup
End-to-end farm setup
Frequently Asked Questions
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Bank-format DPRs prepared to NABARD, NHB and MIDH norms for loan and subsidy applications.
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