Central scheme · 2026

MIDH Mushroom Subsidy

40% (50% NE/Hilly) credit-linked back-ended subsidy on production unit, compost, spawn lab and cold storage.

The short answer

What is the MIDH subsidy for mushroom farming?

MIDH (Mission for Integrated Development of Horticulture) provides 40% of the cost norm as credit-linked back-ended subsidy on commercial mushroom production units, up to ₹12 lakh per unit (₹12 lakh compost, ₹8 lakh spawn lab, ₹35 lakh cold storage). NE and hilly states get 50% (₹15 lakh, ₹15 lakh, ₹10 lakh). It is implemented by State Horticulture Missions, requires a bankable DPR with DSCR > 1.5x, and is released back-ended after 1–3 years of EMI servicing.

Component-wise subsidy ceilings

Production unit (climate-controlled grow rooms)

Subsidy: 40% of the cost norm (50% in NE/Hilly)
Ceiling: ₹12 lakh per unit (₹15 lakh in NE/Hilly)

Spawn making unit

Subsidy: 40% of the cost norm (50% in NE/Hilly)
Ceiling: ₹8 lakh per unit (₹10 lakh in NE/Hilly)

Compost making unit

Subsidy: 40% of the cost norm (50% in NE/Hilly)
Ceiling: ₹12 lakh per unit (₹15 lakh in NE/Hilly)

Cold storage (mushroom-linked)

Subsidy: 35% (NHB component)
Ceiling: ₹35 lakh per project

Post-harvest processing & packing

Subsidy: 40% credit-linked back-ended
Ceiling: ₹10 lakh

Indicative — verify the latest MIDH operational guidelines and your State Horticulture Mission notification.

Documents required

Aadhaar, PAN and bank passbook of the applicant

Land documents (title deed) or registered lease agreement (7+ years)

Detailed Project Report (DPR) with 5-year financials, BOQ and DSCR

Quotation from registered EPC supplier (e.g. MushroomWale / Agrimotion Engineering)

Training certificate from ICAR / state agriculture university (preferred, not mandatory)

Caste / category certificate (for SC/ST/women — for higher pattern of assistance)

Bank pre-sanction letter (term loan tie-up)

GST / Udyam / FPO registration (where applicable)

6-step application workflow

1

DPR preparation

Prepare a bankable DPR aligned to MIDH operational guidelines — includes BOQ, 5-year P&L, cash flow, and DSCR > 1.5x.

2

State Horticulture Mission registration

Register on your State Horticulture Mission portal (SHM is the implementing agency for MIDH at state level).

3

Application + supplier quotation

Upload DPR, supplier quotation, land documents and bank tie-up letter. MushroomWale provides the supplier quotation in MIDH-acceptable format.

4

District / state committee scrutiny

District Mission Committee inspects site. State-level Project Sanctioning Committee (PSC) issues administrative approval.

5

Construction & joint inspection

Build infrastructure as per approved DPR. Joint physical inspection by SHM officer + financing bank.

6

Credit-linked back-ended subsidy

Subsidy is held in a no-lien account with the bank and released back-ended (after loan EMIs run for 1–3 years).

Frequently asked questions

NHB and MIDH mushroom subsidy — current rules

Eligibility, rates and ceilings for each scheme, cited clause by clause from the current documents. NHB and MIDH are a choice, never a stack.

Read the subsidy guide
The company behind the build

Why Choose MushroomWale

  1. 01

    Engineering Expertise

    Agrimotion Engineering Private Limited is a registered EPC company (CIN U43900UP2023PTC185328, GSTIN 09AAZCA0158R1ZP) based in Firozabad, Uttar Pradesh.

  2. 02

    Proven Track Record

    Turnkey mushroom projects from a 2-room starter to a 20-room commercial farm.

  3. 03

    Bank-Recognized DPRs

    Bank-format DPRs prepared to NABARD, NHB and MIDH norms for loan and subsidy applications.

A MushroomWale grow room at dusk after the panels went up
Start your project

Apply for MIDH with MushroomWale

MIDH-aligned DPR, supplier quotation in SHM-acceptable format, and coordination with the District Horticulture Officer — included free for turnkey EPC clients.

  • Turnkey farms built
  • Pan-India delivery
  • Bank-ready DPR