Who is eligible for NHB mushroom farming subsidy?

Individual entrepreneurs, partnership firms, companies, FPOs, SHGs and cooperatives with an integrated unit above 50 MT of installed capacity, a sanctioned term loan from a scheduled commercial bank, a technically viable DPR (DSCR > 1.5) and clear land title or a 9+ year registered lease. Only one member of a family may ever take NHB assistance, and groups of farmers are no longer an eligible organisation.

How is NHB subsidy different from MIDH/NHM subsidy?

NHB prices the unit per tonne of capacity at 35% with no rupee cap below 300 MT, but pays nothing at or below 50 MT and requires a sanctioned bank loan first. MIDH pays 40% of fixed cost norms — up to ₹12 lakh on a production unit, ₹32 lakh across production, compost and spawn units — and credit linkage is optional up to ₹30 lakh. NHB suits units above 50 MT; MIDH suits everything smaller. In NHB's own words the two are a choice on one project, never a stack.

How long does NHB subsidy take to disburse?

Typical timeline: DPR + loan sanction (45–60 days), NHB pre-registration (15–30 days), joint inspection at 50% progress (project month 3–4), final claim on commissioning (month 6–8), subsidy credit to loan account (month 8–12 from project start). Faster if documents are clean.

Does MushroomWale prepare NHB-compliant DPR?

Yes. We prepare bankable DPRs aligned to NHB / NABARD / MIDH templates — BOQ matches our EPC quotation exactly so banks and NHB officers see consistent numbers. The DPR includes DSCR, sensitivity, technical specs, project timelines, and subsidy claim mapping.

Central Government Scheme

NHB Subsidy for Mushroom Farming in India (2026 Guide)

The National Horticulture Board pays a credit-linked, back-ended capital subsidy on an integrated mushroom unit: 35% of ₹75,000 per tonne of installed capacity (₹85,000 with canning) for an integrated unit above 50 MT and up to 300 MT — a maximum of ₹78.75 lakh, or ₹89.25 lakh with canning. In North-Eastern and Himalayan states, Scheduled Areas, and the Union Territories of Andaman & Nicobar, Lakshadweep, Jammu & Kashmir and Ladakh the rate is 45%, a maximum of ₹1.0125 crore, or ₹1.1475 crore with canning. Suited to units above 50 MT of capacity with a sanctioned bank loan.

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The short answer

What is the NHB subsidy for mushroom farming?

The National Horticulture Board (NHB) gives a credit-linked, back-ended capital subsidy on an integrated mushroom production unit in project mode: 35% of ₹75,000 per tonne of installed capacity (₹85,000 with canning) for an integrated unit above 50 MT and up to 300 MT — a maximum of ₹78.75 lakh, or ₹89.25 lakh with canning. In North-Eastern and Himalayan states, Scheduled Areas, and the Union Territories of Andaman & Nicobar, Lakshadweep, Jammu & Kashmir and Ladakh the rate is 45%, a maximum of ₹1.0125 crore, or ₹1.1475 crore with canning. Eligible cost is computed from installed capacity, not from what you spend; at or below 50 MT the item pays nothing. The subsidy is released into the term loan account after commissioning — it reduces loan principal rather than paying cash to the promoter — and starting construction before NHB's Grant of Clearance leads to rejection.

Eligibility Checklist

Individual entrepreneurs, partnership firms, companies, FPOs, SHGs, cooperatives
Project must be technically feasible and commercially viable (DPR mandatory)
Term loan must be sanctioned by a NABARD-refinanced bank or scheduled commercial bank
Installed capacity above 50 MT — eligible cost is computed from capacity, not from the invoice, and at or below 50 MT this item pays nothing
No construction before NHB issues its Grant of Clearance — building first leads to rejection
Land ownership or registered long-term lease (typically 9+ years)

How to Apply — 6 Steps

1. DPR + Project Profile

Bankable DPR with BOQ, financials, DSCR > 1.5, ROI, sensitivity analysis aligned to NHB scheme template.

2. Term Loan Sanction

Apply to a scheduled bank (SBI, BoB, PNB, etc.) for term loan covering 75–80% of project cost.

3. NHB Pre-Registration

Online application on NHB portal with sanctioned loan letter, DPR, and KYC documents.

4. Joint Inspection

NHB officer + bank officer joint site inspection at 50% physical progress to verify works.

5. Subsidy Claim

Final claim on commissioning with CA-certified utilisation, photos, asset register, and bank certificate.

6. Back-ended Release

Subsidy credited to the term loan account (back-ended) reducing principal — not paid as cash to promoter.

NHB vs MIDH — Which One to Choose?

Parameter	NHB	MIDH/NHM
Subsidy %	35% (45% NE & Himalayan states, Scheduled Areas)	40% of the cost norm (50% NE & Himalayan states, Scheduled Areas)
Per project cap	No rupee cap — 300 MT of capacity binds: max ₹78.75 lakh, or ₹89.25 lakh with canning; enhanced areas ₹1.0125 crore, or ₹1.1475 crore with canning	₹12 lakh production + compost + spawn = ₹32 lakh
Best fit	Integrated units above 50 MT of capacity	Everything smaller — up to ₹30 lakh per component
Release type	Back-ended (loan a/c)	Direct to bank a/c
Loan mandatory?	Yes — sanctioned before clearance	Optional up to ₹30 lakh

Frequently Asked Questions

Related Resources

→ MIDH 40% subsidy guide → NABARD term loan → State Horticulture Mission → Download sample DPR → DPR for bank loan → 1 ton/day project

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

01
Engineering Expertise
Agrimotion Engineering Private Limited is a registered EPC company (CIN U43900UP2023PTC185328, GSTIN 09AAZCA0158R1ZP) based in Firozabad, Uttar Pradesh.
02
Proven Track Record
Turnkey mushroom projects from a 2-room starter to a 20-room commercial farm.
03
Bank-Recognized DPRs
Bank-format DPRs prepared to NABARD, NHB and MIDH norms for loan and subsidy applications.