How much mushroom subsidy does Uttar Pradesh give?

UP Horticulture Mission assistance for mushroom units under MIDH is commonly notified around 40-50% of approved unit cost with per-unit ceilings, subject to district targets. PMEGP adds 25-35% margin money and NHB gives 40% back-ended capital subsidy on credit-linked commercial projects.

How do I apply for mushroom subsidy in UP?

Register on the UP horticulture portal, apply under the mushroom component for your district, obtain pre-approval and site verification from the District Horticulture Officer, complete construction with full documentation, then file the claim with invoices, photographs and a utilisation certificate.

Does UP support spawn and compost units too?

Yes. Spawn production labs and Phase-I/Phase-II compost units are separately assisted components, which matters for growers planning to supply neighbouring farms as well as their own.

What does a mushroom farm cost in Uttar Pradesh before subsidy?

Roughly ₹18-25 lakh for the MushroomWale EPC scope on a two-room unit. GST @18% and transport are extra; civil works, electrical infrastructure and boundary are client scope.

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Uttar Pradesh · State Scheme Guide

Mushroom Farming Subsidy in Uttar Pradesh

Uttar Pradesh backs mushroom farming through the UP Horticulture Mission / MIDH route with unit, spawn and compost assistance, plus PMEGP margin money and NHB capital subsidy for large commercial units.

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How much mushroom subsidy can you get in Uttar Pradesh?

Mushroom farming in Uttar Pradesh is supported through the UP Horticulture Mission under MIDH, which assists mushroom production units, spawn labs and compost units at rates commonly notified around 40-50% of approved unit cost. PMEGP adds 25-35% margin money, and NHB provides 40% back-ended capital subsidy (up to ₹50 lakh) on credit-linked commercial projects. Actual rates depend on the current year's state notification and district targets.

Schemes available in Uttar Pradesh

UP Horticulture Mission (MIDH)

40-50% of approved unit cost

Directorate of Horticulture & Food Processing, Govt. of UP

Applications through the UP horticulture portal against district targets. Covers mushroom units, spawn production and compost units.

UP Food Processing Policy incentives

Capital and interest subvention

Dept. of Horticulture & Food Processing, UP

For units adding drying, grading, canning or packaging to the mushroom farm.

PMEGP

25-35% margin money (project up to ₹50 lakh)

KVIC / District Industries Centre

Widely used across the Lucknow, Kanpur, Varanasi and western UP belts for mushroom enterprises.

NABARD / AIF term loan

3% interest subvention on eligible assets

NABARD & scheduled banks

Funds cold rooms and post-harvest assets serving Delhi NCR and UP city markets.

NHB capital subsidy

40% back-ended, up to ₹50 lakh

National Horticulture Board

For ₹1 crore+ commercial units with sanctioned bank term loans.

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 Uttar Pradesh
Khatauni / khasra record or registered lease in the applicant's name
Registration on the UP horticulture beneficiary portal with Aadhaar-seeded bank account
Pre-approval and site verification before construction starts
No earlier 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/NHM-routed schemes.

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, direct to bank account in tranches for MIDH/NHM.

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 Uttar Pradesh site, read the mushroom farming in Uttar Pradesh guide, or compare all schemes on the national subsidy page. GST @18% and transport extra; civil works are client scope.

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Uttar Pradesh mushroom subsidy FAQs

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