Mushroom Farming Subsidy in Uttar Pradesh
Uttar Pradesh funds mushroom units through the UP Horticulture Mission (MIDH) at 40% of the cost norm, with PMEGP margin money, PMFME for processing and NHB's per-tonne subsidy for large credit-linked units.
How much mushroom subsidy can you get in Uttar Pradesh?
Mushroom farming in Uttar Pradesh is funded through two national schemes, and one project may use one of them, not both. Under MIDH — administered as the UP Horticulture Mission under the Directorate of Horticulture & Food Processing — 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. Drying, grading or packaging added to the farm is a separate PMFME claim, never part of the growing rooms.
Schemes available in Uttar Pradesh
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.
Drying, pickling, powder, IQF and packaging — value addition, never the growing rooms. Apply on pmfme.mofpi.gov.in.
Compost units, spawn labs and processing — manufacturing, not a cultivation shed. Widely used across the Lucknow, Kanpur, Varanasi and western UP belts for mushroom enterprises. Apply on kviconline.gov.in/pmegpeportal before starting.
Cold storage, pack houses, spawn labs and processing financed on a term loan. Funds cold rooms and post-harvest assets serving Delhi NCR and UP city markets, on a term loan.
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 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 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
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.
Uttar Pradesh mushroom subsidy FAQs
Planning a subsidised mushroom farm in Uttar Pradesh?
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