Maharashtra · State Scheme Guide

Mushroom Farming Subsidy in Maharashtra

Maharashtra administers the MIDH mushroom component on MahaDBT at 40% of the cost norm, backed by PMEGP margin money and NHB's per-tonne subsidy for Pune, Nashik and Mumbai-belt commercial units.

The short answer

How much mushroom subsidy can you get in Maharashtra?

Mushroom farming in Maharashtra is funded through two national schemes, and one project may use one of them, not both. Under MIDH — administered as the state horticulture scheme on the MahaDBT portal — a private applicant in a general area receives 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. Under NHB, an integrated unit above 50 MT of capacity is priced at ₹75,000 per tonne (₹85,000 with canning) and assisted at 35%, a maximum of ₹78.75 lakh (₹89.25 lakh with canning), credit-linked and back-ended. PMEGP adds margin money of 15-35% depending on category and location, on projects up to ₹50 lakh. AIF is interest relief on a loan, not a grant, and NABARD pays no mushroom subsidy. PM-RKVY publishes no mushroom rate; cluster and FPO projects under it are appraised case by case.

Schemes available in Maharashtra

MIDH mushroom cultivation component (state horticulture scheme on MahaDBT)
40% of the cost norm — up to ₹12 lakh on a production unit (₹30 lakh norm), ₹12 lakh on a compost unit, ₹8 lakh on a spawn unit
Directorate of Horticulture, Govt. of Maharashtra

Credit-linked, back-ended; 50% in NE & Himalayan states, Scheduled Areas, vibrant villages, Andaman & Nicobar and Lakshadweep. Credit linkage is waived for named institutions and optional for projects up to Rs 30 lakh (Annexure V, closing note). NHB, by contrast, will not clear a project without a sanctioned bank term loan. Apply and get pre-approval before construction starts.

PMEGP
Margin-money subsidy of 15-35% depending on category and location, on projects up to ₹50 lakh.
KVIC / District Industries Centre

Compost units, spawn labs and processing — manufacturing, not a cultivation shed. Heavily used around Pune, Nashik and Sangli for agro-processing and mushroom enterprises. Apply on kviconline.gov.in/pmegpeportal before starting.

AIF (Agriculture Infrastructure Fund) — a loan benefit, not a grant
3% interest subvention on up to ₹2 crore of loan for 7 years — roughly ₹42 lakh of interest relief across the term. It caps the LOAN, not a subsidy, and pays nothing toward the build.
Scheduled banks, on agriinfra.dac.gov.in

Cold storage, pack houses, spawn labs and processing financed on a term loan. Cold rooms, packhouses and grading lines serving the Vashi and Pune markets, on a term loan.

NHB — Integrated Mushroom Production Unit (project mode)
35% of ₹75,000 per tonne of capacity (₹85,000 with canning), above 50 MT and up to 300 MT — maximum ₹78.75 lakh (₹89.25 lakh with canning)
National Horticulture Board

Credit-linked and back-ended into the term loan. Eligible cost is computed from installed capacity, not the invoice: at or below 50 MT this item pays nothing. 45% (maximum ₹1.0125 crore) in North-Eastern and Himalayan states, Scheduled Areas, and the Union Territories of Andaman & Nicobar, Lakshadweep, Jammu & Kashmir and Ladakh. Starting construction before NHB issues its Grant of Clearance leads to rejection. NHB and MIDH are a choice on one project, never a stack.

NABARD
No mushroom subsidy — refinance to the bank that lends to you
NABARD, through your bank

NABARD does not pay a mushroom subsidy. It refinances the bank that lends to you. 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.

Subsidy rates are indicative and subject to the current year's government notification, district targets and fund availability. MushroomWale does not guarantee sanction of any scheme.

Who is eligible

  • Farmers, FPOs, SHGs and registered firms with land in Maharashtra
  • 7/12 extract and 8-A in the applicant's name, or a registered lease
  • MahaDBT farmer registration with Aadhaar-seeded bank account
  • Pre-approval before starting construction on MIDH-routed assistance
  • No duplicate subsidy claimed on the same asset

Documents required

  • Aadhaar, PAN and passport photographs of the applicant / promoters
  • Land ownership papers (jamabandi / 7-12 / RoR) or registered lease of 9+ years
  • Bankable DPR with BOQ, financials, DSCR and sensitivity analysis
  • Itemised EPC quotation from the turnkey vendor (MushroomWale quote works as-is)
  • Bank term-loan sanction letter (for credit-linked schemes such as NHB and PMEGP)
  • Project site photographs, electricity connection proof and water source detail
  • GST registration / Udyam registration for the farm entity

How to apply — step by step

1. Prepare the DPR
Detailed project report with BOQ matching the turnkey quotation, 5-year financials, DSCR above 1.5 and a subsidy claim map.
2. Register on the scheme portal
File the application on the state horticulture / MIDH portal (or NHB portal for credit-linked capital subsidy) before starting construction.
3. Get administrative approval
District Horticulture Officer inspects the site and issues pre-approval. Do not start civil works before this on MIDH-routed schemes, and never before NHB's Grant of Clearance.
4. Bank sanction (if credit-linked)
Term-loan sanction from a scheduled commercial bank for 75-80% of project cost, quoting the scheme name.
5. Build and document
Commission the unit with dated photographs, invoices, asset register and CA-certified utilisation statement.
6. Claim and release
Joint inspection on completion, then subsidy release — back-ended to the loan account for NHB and credit-linked MIDH claims.

Cost the project before you apply

Every scheme above needs an itemised project cost and a bankable DPR. Get a MushroomWale turnkey quotation for your Maharashtra site, read the mushroom farming in Maharashtra guide, or compare all schemes on the national subsidy page. GST @18% and transport extra; civil works are client scope.

Maharashtra mushroom subsidy FAQs

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