Mushroom Farming Subsidy in India 2026 — Complete Application Guide
📋 Table of Contents
The Indian government actively promotes mushroom farming through multiple subsidy schemes. If you know the right channels, you can reduce your initial investment by 25–50%. This guide covers every available mushroom farming subsidy, eligibility criteria, and step-by-step application process.
1. All Mushroom Farming Subsidies at a Glance
| Scheme | Subsidy % | Max Amount | Applied Via |
|---|---|---|---|
| PMEGP | 25–35% | ₹6.25–8.75 lakh | KVIC/DIC online |
| NHM/MIDH | 40–50% | Varies by state | State horticulture dept |
| NABARD | Subsidized interest | Based on project | Through banks |
| Mudra Loan | No subsidy (easy loan) | ₹10 lakh | Any bank |
| State schemes | 20–50% | Varies | State agriculture dept |
2. PMEGP — Prime Minister’s Employment Generation Programme
🌟 Most Popular Scheme for Mushroom Farming
PMEGP is the go-to subsidy for new mushroom farms. It covers 25–35% of project cost up to ₹25 lakhs for manufacturing units.
Eligibility
- Age: 18+ years
- Education: 8th pass (for projects above ₹10 lakhs)
- No existing government subsidy availed
- Unit must be new (not expansion of existing)
Subsidy Rates
| Category | Urban | Rural |
|---|---|---|
| General | 15% | 25% |
| SC/ST/OBC/Women/Ex-servicemen | 25% | 35% |
How to Apply
- Visit kviconline.gov.in
- Register and fill application form
- Upload project report (DPR), Aadhaar, photos, education certificate
- Submit to KVIC/DIC for processing
- After approval, open bank account at designated bank
- Bank releases loan. Subsidy deposited after project completion.
3. NHM/MIDH — National Horticulture Mission
Under the Mission for Integrated Development of Horticulture (MIDH), mushroom farming is classified as a priority crop:
- Mushroom production unit: 40–50% subsidy on setup cost
- Spawn production lab: Separate assistance available
- Compost making unit: Additional subsidy
How to Apply
- Contact your District Horticulture Officer (DHO)
- Submit application with project report
- Inspection by department officials
- Subsidy released in 2–3 installments based on progress
4. NABARD Refinance Scheme
NABARD provides refinance to banks lending for mushroom farming at subsidized interest rates. Benefits:
- Lower interest rates (6–8% vs 12–14% commercial rates)
- Longer repayment period (5–7 years)
- Available through all public sector banks
- Requires detailed project report
5. Mudra Loan for Mushroom Farming
| Category | Loan Amount | Collateral | Best For |
|---|---|---|---|
| Shishu | Up to ₹50,000 | None | Micro beginners |
| Kishore | ₹50,001–₹5,00,000 | None | Small farms |
| Tarun | ₹5,00,001–₹10,00,000 | May require | Commercial farms |
Advantage: No collateral needed up to ₹5 lakhs. Apply at any commercial bank with your project report and ID proof.
6. State-Wise Mushroom Farming Schemes
| State | Scheme | Subsidy |
|---|---|---|
| Haryana | HSAMB / State Horticulture | 33–50% |
| Himachal Pradesh | HP Mushroom Dev. Project | 50% |
| Uttarakhand | State Horticulture Mission | 40–50% |
| Punjab | Punjab Agri. University link | 25–40% |
| Uttar Pradesh | UP Horticulture Dept. | 40% |
| Bihar | Bihar Horticulture Mission | 50% |
| Maharashtra | ATMA / State NHM | 40% |
For state-specific details, check our state-wise mushroom farming guides.
7. Documents Required for Subsidy Application
- Aadhaar Card & PAN Card
- Project Report (DPR) — Most important document. Include cost breakdown, revenue projections, technical details.
- Land documents — Ownership proof or lease agreement
- Bank passbook — Last 6 months
- Education certificate — 8th pass minimum for PMEGP
- Caste certificate — For SC/ST/OBC higher subsidy rate
- Passport-size photographs
- Training certificate — From recognized institute (increases approval chances)
🎓 Get Training + Help with Subsidy Application
Our training includes business plan preparation that you can use for loan/subsidy applications
View Training CoursesFrequently Asked Questions
How much subsidy is available for mushroom farming?
Government subsidies range from 25% to 50% of project cost. PMEGP offers 25–35%, NHM/MIDH offers 40–50%. Special categories (SC/ST/women) get higher rates.
How to apply for mushroom farming subsidy?
For PMEGP, apply online at kviconline.gov.in. For NHM subsidy, contact your district horticulture officer. You need a project report, ID proof, land documents, and bank account.
Can I get 100% subsidy for mushroom farming?
No government scheme offers 100% subsidy. The maximum is 50% (NHM for SC/ST in some states). However, combining PMEGP subsidy + Mudra loan can cover 85–90% of your investment.
Do I need training certification for subsidy?
Not mandatory for most schemes, but having a training certificate from a recognized institute significantly improves your approval chances. KVIC and banks prefer trained applicants.
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- Mushroom Farming Business Plan
- Cost & Profit Analysis
- How to Start Mushroom Farming
- Best Training in India
State-Wise Farming Guides
