
Mushroom Farming in Uttar Pradesh
Mushroom farming in Uttar Pradesh (UP) feeds a 240+ million population. Strategic location serving Delhi NCR, Lucknow, Kanpur, Varanasi mega-markets with massive demand.
Is Uttar Pradesh Good for Mushroom Farming?
India's most populous state: 240+ million people across several large city markets. Multiple mega-cities: Lucknow (4M+), Kanpur (3M+), Varanasi (2M+), Agra, Meerut, Ghaziabad. Delhi NCR spillover: Noida, Ghaziabad, Greater Noida in UP serve Delhi market. Uttar Pradesh offers strong potential for commercial mushroom farming with growing urban demand and government subsidy support under NHM, NABARD, and PMEGP schemes.
Mushroom Farming in Uttar Pradesh — Local Overview
Mushroom farming in Uttar Pradesh is emerging as one of the most profitable agribusiness opportunities in the state. With favourable agro-climatic conditions and rising demand from urban markets, hotels and exporters, commercial mushroom cultivation in Uttar Pradesh delivers strong year-round returns. Districts such as Lucknow, Ghaziabad, Noida, Kanpur and Varanasi are especially well-suited for climate-controlled, AC-based mushroom units that run profitably through every season.
The most popular and profitable varieties for Uttar Pradesh growers are button mushroom (dominant), oyster mushroom, milky mushroom. A turnkey project from MushroomWale typically includes PUF-panel grow rooms, Phase I & II compost units, climate control, vertical racking and complete turnkey EPC installation. Most farmers in Uttar Pradesh start with a 2-room 18×40 ft button mushroom setup and scale up as demand grows.
Farmers in Uttar Pradesh can also avail government support — explore the mushroom subsidy schemes, NABARD loans and PMEGP loan for a mushroom project available across Uttar Pradesh. Use our cost calculator to estimate setup cost and ROI for your specific district, or request a free quote for a site-specific plan.
Commercial Mushroom Farm Setup in Uttar Pradesh
Planning a commercial-scale unit in Uttar Pradesh? See full investment tiers, ROI workings, bankable DPR support and an itemised turnkey scope on our commercial mushroom farm setup guide, then request a district-specific quote. GST @18% and transport extra; civil works are client scope.
Uttar Pradesh Mushroom Farm Cost & ROI
Two 18×40 ft rooms on bought-in compost, from the same rate engine as the quotation and the site's cost model (₹120/kg farm-gate, six crops a year). The rate card is the same in Uttar Pradesh as everywhere; GST @18% and transport are extra; civil works, electrical infrastructure and boundary are client scope.
EPC scope (2 rooms)
₹16-22 lakh
Two 18×40 to 18×70 ft rooms, core scope, ex-GST — the same rates in every state; ₹22-33 lakh with additional works and racks.
Client scope (civil, electrical, boundary)
₹7-12 lakh
Approx. for a western or central UP site.
Annual revenue (2 × 18×40 ft)
₹46.1 lakh
38,400 kg a year (6,400 kg a crop, six crops) at ₹120/kg farm-gate.
Running cost per crop
₹6.0 lakh
6,400 kg at ₹94.4/kg — bought-in compost, spawn, power, labour and packing.
Payback period
about 32 months
On ₹26.2 lakh — two 18×40 ft rooms, full scope with GST — before any subsidy; margin about ₹82,000 a month.
Break-even selling price
₹94.4/kg
The running cost of a kilo with bought-in compost; every rupee above it is margin.
Mushroom Subsidy in Uttar Pradesh
Scheme-by-scheme rates, eligibility, documents and the application route for Uttar Pradesh growers — with the project costing banks and horticulture officers ask for.
Why Uttar Pradesh for Mushroom Farming?

India's most populous state: 240+ million people across several large city markets
Multiple mega-cities: Lucknow (4M+), Kanpur (3M+), Varanasi (2M+), Agra, Meerut, Ghaziabad
Delhi NCR spillover: Noida, Ghaziabad, Greater Noida in UP serve Delhi market
Abundant paddy straw: UP is India's #2 rice producer — cheap substrate for oyster mushrooms
Every district has a horticulture office for MIDH applications
Lower labour costs: agricultural wages are lower than in Haryana
Rapid urbanization: Growing middle class with rising health consciousness
Uttar Pradesh Climate for Mushroom Farming
Winter Temp
5-22°C
Summer Temp
28-45°C
Humidity
35-75%
Open-Air Season
Nov–Feb
AC Season
Mar–Oct
Best Setup
Year-round (AC)
Uttar Pradesh Mushroom Farming Subsidy
Subsidy amounts are indicative and subject to government policy changes. Actual disbursement depends on scheme availability, documentation, and district-level approval.
MIDH mushroom cultivation component (UP Horticulture Mission)
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
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.
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.
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)
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 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.
Setup Cost in Uttar Pradesh
Based on a 2-room 18×40 ft button mushroom farm — MushroomWale rows from the rate engine, client rows are estimates
Cooling is sized by room, not by city: 6 TR for an 18×30 ft room, 8 TR for 18×40 ft, 10 TR for 18×60 ft and 12 TR for 18×70 ft. Climate changes the power bill, not the machine — an 18×40 ft room draws up to 8.55 kW, about ₹77 an hour at full load at ₹9 a unit, and hot months keep it at full load for longer.
- 2× PUF grow rooms 18×40 ft — PPGL PUF panels, roof and doors (section A)₹8.1 lakh
- Refrigeration & climate control — Daikin units, CR2 commissioning (section B)₹6.8 lakh
- Air handling — ducting, mixing chamber, dampers, filters (section C)₹1.1 lakh
- MushroomWale core scope total (A–C)₹16.0 lakh + GST
- Additional works & 7-tier MS racks — control panel, wiring, water, flashing, racks, paint, skilled labour (section F)₹6.2 lakh
- MushroomWale full EPC scope total (A–C + F)₹22.2 lakh + GST
- Civil Work (Foundation, Flooring, Drainage)Client Scope₹3-5 lakh (est.)
- Electrical Infrastructure (Transformer, Wiring)Client Scope₹2-4 lakh (est.)
- Boundary Wall, Labour Room, OfficeClient Scope₹3-6 lakh (est.)
- Land (leased, 0.5 acre)Client Scope₹50,000-1,20,000/yr
Important: GST & Transport Extra
- GST @18% applicable on all machinery, equipment, and PUF panels — charged extra as per government norms.
- Transport charges extra — varies by distance from manufacturing unit to project site. Quoted separately based on location.
- Prices are ex-factory / ex-works and subject to prevailing market rates at the time of order confirmation.
- All rates valid for 5 days only from the date of quotation due to fluctuating raw material costs.
Automation (HMI, PLC, IoT Based) can be done as per Client Requirement — quoted separately.
Client Scope — Additional Works (Not Included)
The following civil and infrastructure works are Client's responsibility and are NOT included in the above project cost:
- Civil Construction: Foundation, flooring, RCC platform, drainage
- Boundary Wall & Fencing: Site compound, security fencing
- Labour Rooms & Office: Worker accommodation, office space, washrooms
- Storage Area: Raw material storage, finished goods godown
- Electrical Infrastructure: Transformer, HT/LT line, metering, wiring from panel to equipment
- Water Supply: Borewell / municipal connection, overhead tank, plumbing
- Approach Road: Internal roads and vehicle access
- Land: Purchase or lease of land is client's arrangement
Note: MushroomWale provides turnkey EPC for Grow Rooms, Climate Control, Racks & Machinery only. All civil and site-level infrastructure is to be arranged by the client.
Uttar Pradesh mushroom farm cost & subsidy calculator
Estimate your turnkey EPC cost in Uttar Pradesh and see which subsidy scheme will return the highest eligible amount based on your project profile. Indicative only — request a formal quotation for site-specific pricing.
1–50 rooms per project
Estimated project cost in Uttar Pradesh
- EPC scope (MushroomWale)
- ₹21.4 lakh
- GST @ 18%
- ₹3.85 lakh
- EPC + GST
- ₹25.25 lakh
- Client scope (civil + electrical)
- ₹9 lakh
- Indicative total project cost
- ₹34.25 lakh
Excludes transport (varies by distance from factory) and land cost. Automation (HMI / PLC / IoT) quoted separately as per requirement.
Best subsidy schemes for your profile
Recommended: NHM / MIDH (Uttar Pradesh Horticulture Mission) — up to ₹8.56 lakh
Capital subsidy on grow rooms, climate control and machinery for commercial mushroom production units.
NHM / MIDH (Uttar Pradesh Horticulture Mission)
Capital subsidy on grow rooms, climate control and machinery for commercial mushroom production units.
₹8.56 lakhDetailsPMFME (Food Processing)
Credit-linked subsidy for processing, canning and value-addition. Strong fit if you plan post-harvest processing.
₹7.49 lakhDetailsPMEGP (KVIC)
Margin-money subsidy for first-generation entrepreneurs (rural).
₹5.35 lakhDetails
Based on Oct 2026 master rates (v2.92). GST @ 18% and transport extra. Subsidy estimates are indicative — actual disbursement depends on scheme availability, documentation and government approval.
District-wise mushroom farming in Uttar Pradesh
MushroomWale serves every major mushroom-growing district in Uttar Pradesh with engineered PUF-panel grow rooms, compost units, hands-on training and subsidy DPR support. Pick your district to see the closest service connection.
Mushroom farming in Lucknow, Uttar Pradesh
State capital, largest urban market, best logistics MushroomWale delivers turnkey commercial farms in Lucknow with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Lucknow project costMushroom farming in Ghaziabad, Uttar Pradesh
Delhi NCR, Metro connectivity, highest demand MushroomWale delivers turnkey commercial farms in Ghaziabad with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Grow rooms in GhaziabadCompost units near GhaziabadTraining for Ghaziabad farmersSubsidy in GhaziabadEstimate Ghaziabad project costMushroom farming in Noida, Uttar Pradesh
Delhi proximity, IT industry, premium market MushroomWale delivers turnkey commercial farms in Noida with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Noida project costMushroom farming in Kanpur, Uttar Pradesh
Industrial hub, large population MushroomWale delivers turnkey commercial farms in Kanpur with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Kanpur project costMushroom farming in Varanasi, Uttar Pradesh
Religious tourism, hotel demand, east UP hub MushroomWale delivers turnkey commercial farms in Varanasi with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Varanasi project costMushroom farming in Agra, Uttar Pradesh
Tourism industry, Taj corridor MushroomWale delivers turnkey commercial farms in Agra with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Agra project costMushroom farming in Meerut, Uttar Pradesh
Delhi NCR, agricultural hub MushroomWale delivers turnkey commercial farms in Meerut with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Meerut project costMushroom farming in Bareilly, Uttar Pradesh
Central UP, affordable land MushroomWale delivers turnkey commercial farms in Bareilly with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Estimate Bareilly project costMushroom farming in Gorakhpur, Uttar Pradesh
Eastern UP hub, emerging market MushroomWale delivers turnkey commercial farms in Gorakhpur with PUF-panel grow rooms, climate control sized for local ambients, in-house compost supply and bank-DPR ready documentation.
Grow rooms in GorakhpurCompost units near GorakhpurTraining for Gorakhpur farmersSubsidy in GorakhpurEstimate Gorakhpur project cost
District-wise FAQs — Uttar Pradesh
Cold-room setup, bank-DPR documents and subsidy routes — answered for the most common mushroom-farming districts of Uttar Pradesh. Each answer links back to the engineered service section it depends on.
Lucknow, Uttar Pradesh
Ghaziabad, Uttar Pradesh
Noida, Uttar Pradesh
Kanpur, Uttar Pradesh
Varanasi, Uttar Pradesh
Agra, Uttar Pradesh
Mushroom Farm Setup in Uttar Pradesh Cities
We deliver and install turnkey mushroom farms across major cities in Uttar Pradesh

Looking for a Mushroom Farm Near Me in Uttar Pradesh?
If you are searching for a mushroom farm near me in Uttar Pradesh — to visit a working unit, buy fresh mushrooms, source spawn, or plan your own farm — MushroomWale teams cover Lucknow, Ghaziabad, Noida, Kanpur and Varanasi and every other district in the state. We design, supply, install and commission climate-controlled mushroom farms on site, so the nearest project is usually within a few hours' drive.
Tell us your district and we will share the closest commissioned farm you can visit, realistic Uttar Pradesh setup costs, and a same-week site plan. GST @18% and transport extra; civil works, electrical infrastructure and boundary are client scope.
Best Mushroom Types for Uttar Pradesh
- Button Mushroom (dominant)
- Oyster Mushroom
- Milky Mushroom
- Shiitake
- Paddy Straw Mushroom
Essential Resources
Mushroom Farming GuideComplete beginner-to-pro cultivation guide
Button Mushroom CultivationStep-by-step button mushroom process
Compost PreparationPhase I & II composting explained
Subsidy Guide IndiaAll central & state subsidy schemes
NABARD Loan GuideBank loan process for mushroom farms
Turnkey Farm SetupEnd-to-end farm; rooms from ₹6.6 lakh, ex-GST
Grow Room ServicePUF insulated climate-controlled rooms
Compost Unit ServicePhase I & II composting infrastructure
ROI CalculatorCalculate your farm economics & paybackMushroom Farming in Other States
Explore mushroom farming guides for nearby states
Frequently Asked Questions
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.

Start Your Mushroom Farm in Uttar Pradesh
MushroomWale delivers and installs turnkey mushroom farms across Uttar Pradesh. Free site visit available.
- Turnkey farms built
- Pan-India delivery
- Bank-ready DPR
