All Government Subsidy Schemes for Mushroom Farming in India (2026)

The Indian government provides significant financial support for mushroom farming through at least 6 major schemes at the central level, plus numerous state-specific programmes. Depending on your scale, location, and category, you can reduce your initial investment by 25–50% or more.

This guide covers every available scheme with exact subsidy amounts, eligibility criteria, required documents, official application portals, and state-wise details — all in one place.

1. Quick Comparison — All 6 Government Schemes

2. MIDH — Mission for Integrated Development of Horticulture

MIDH is the primary central government scheme for mushroom farming subsidies in India. Administered by the Ministry of Agriculture & Farmers’ Welfare, it covers mushroom production, spawn making, and compost making units.

2.1 Small-Scale / Low-Cost Mushroom Unit

This is the easiest entry point for new farmers. With 5 units, you can get up to ₹5 lakh subsidy on a ₹10 lakh investment.

2.2 Commercial / Integrated Mushroom Units (Project Mode)

*NE & Himalayan states include all 8 North-Eastern states, Himachal Pradesh, Jammu & Kashmir, Ladakh, and Uttarakhand. Scheduled areas and Vibrant Villages also qualify for higher rates. Public sector units get up to 100%.

2.3 How to Apply for MIDH Subsidy

1. Contact your District Horticulture Officer (DHO) or State Horticulture Mission (SHM) office. They will inform you about the current year’s Annual Action Plan (AAP) and available funds for your district.
2. Prepare a Detailed Project Report (DPR) covering unit specifications, cost breakup, production plan, and revenue projections.
3. Secure a bank loan — since the subsidy is credit-linked (for commercial units), you must get a term loan sanctioned from a bank.
4. Submit your application through the DHO/SHM with all documents. You can also check the MIDH SURAKSHA Portal for online options.
5. Site inspection by horticulture department officials to verify feasibility.
6. Receive approval (LOI) — do NOT start major construction before receiving this.
7. Complete the project as per approved specifications.
8. Joint inspection & subsidy release — the subsidy amount is released to your bank loan account.

3. NHB — National Horticulture Board

The NHB operates under MIDH but specifically supports larger, commercial, climate-controlled mushroom projects through its “Development of Commercial Horticulture” scheme.

3.1 What’s Covered

• Infrastructure: Insulated growing rooms, specialized flooring, doors
• Climate control & automation: Chillers, Air Handling Units (AHUs), humidification/fogging systems, environmental sensors (temperature, CO₂), steam supply
• Post-harvest: Cold storage, canning lines, primary processing equipment

3.2 Subsidy Rates

3.3 How to Apply

1. Prepare a professional DPR (model DPRs available on NHB website)
2. Secure a term loan from a bank
3. Register & apply online at nhb.gov.in
4. Upload DPR, bank sanction letter, land documents (ownership or minimum 10-year lease)
5. NHB conducts site inspection for technical compliance
6. Subsidy released to bank loan account after project completion

4. PMEGP — Prime Minister’s Employment Generation Programme

Implemented by KVIC (Khadi & Village Industries Commission), PMEGP is one of the most popular subsidy schemes for mushroom farming. It supports new micro-enterprises in the manufacturing and service sectors.

4.1 Subsidy Rates

4.2 Project Limits

• Manufacturing units: Up to ₹50 lakh project cost
• Service units: Up to ₹20 lakh project cost
• Beneficiary contribution: 10% (General) or 5% (Special category)

4.3 Eligibility

• Age: 18+ years
• Education: 8th pass (for projects above ₹10 lakh)
• Must be a new unit (not expansion of existing business)
• Must NOT have availed any other government subsidy previously
• Government employees and existing income tax assessees are generally ineligible

4.4 How to Apply

1. Visit kviconline.gov.in → click “PMEGP e-Portal”
2. Click “Online Application for Individual”
3. Fill personal details (name must match Aadhaar exactly)
4. Select “Manufacturing” as project type, “Agro Based & Food Processing” as industry
5. Enter project cost (must match your DPR exactly)
6. Upload: Aadhaar, PAN, photo, education certificate, caste certificate (if applicable), and Project Report (DPR) as PDF
7. Select implementing agency (KVIC or DIC)
8. Submit & note your application ID
9. KVIC/DIC officer will visit your site within 30–60 days
10. After approval, bank sanctions loan. Subsidy deposited after project completion.

5. PMFME — PM Formalisation of Micro Food Processing Enterprises

Under the Ministry of Food Processing Industries, PMFME supports micro food processing units including mushroom processing, drying, packaging, and value-added products.

5.1 Who Can Apply

• Existing or new micro food processing enterprise (unorganised sector)
• Age: 18+ years
• Education: Minimum 8th standard
• One person per family
• Must be willing to formalise (FSSAI registration, GST if applicable)
• Preference for units aligned with district’s ODOP (One District One Product)

5.2 SHG Support

Self-Help Groups (SHGs) can receive ₹40,000 per member as seed capital for working capital and purchase of small tools/equipment.

5.3 How to Apply

1. Check ODOP status for your district at pmfme.mofpi.gov.in
2. Register and fill the online application
3. Prepare and upload a bankable DPR
4. Secure a bank loan (subsidy is credit-linked)
5. Obtain FSSAI registration at foscos.fssai.gov.in
6. Complete project → inspection → subsidy release

6. Mudra Loan (PMMY — Pradhan Mantri Mudra Yojana)

Mudra is not a subsidy but provides collateral-free loans for small businesses including mushroom processing units. It’s the easiest way to get funded without pledging property.

How to apply: Visit any commercial bank, RRB (Regional Rural Bank), or microfinance institution with a clear business plan and identity documents. No separate portal — apply directly at the bank branch.

7. Agriculture Infrastructure Fund (AIF)

A ₹1 lakh crore central government fund specifically for post-harvest management infrastructure. Ideal if you’re building cold storage, processing units, or pack-houses for mushrooms.

AIF doesn’t give a direct subsidy — instead it reduces your interest rate by 3% and provides credit guarantee, making bank loans significantly cheaper and easier to get for mushroom infrastructure.

8. State-Wise Mushroom Subsidy Overview

Many states have their own mushroom farming promotion programmes, often funded through RKVY (Rashtriya Krishi Vikas Yojana) or State Horticulture Missions. Here’s a summary:

How to find your state’s latest scheme: Visit your state’s Department of Horticulture website or search on myscheme.gov.in for “mushroom cultivation” filtered by your state.

For detailed state-by-state mushroom farming guides including climate, best varieties, and local KVK training centres, see our state-wise mushroom farming guides.

9. Step-by-Step: How to Apply for Mushroom Farming Subsidy

Regardless of the scheme, the general application flow follows a similar pattern:

1. Get trained. Complete a mushroom farming training from a recognised institute (KVK, ICAR, or private like ours). The certificate boosts approval chances significantly.
2. Prepare a Detailed Project Report (DPR). Include: project summary, technical specifications, cost breakup, revenue projections, market analysis, and your background. Keep projections realistic.
3. Identify the right scheme. Small unit? → MIDH (via DHO). Large climate-controlled? → NHB. Processing/packaging? → PMFME. New enterprise? → PMEGP.
4. Contact authorities early. Visit your DHO or KVIC/DIC office in April–June (start of financial year) when fresh funds are allocated. Explain your project and get guidance on the application process.
5. Arrange land. Secure ownership proof or a registered lease (minimum 5–10 years). Un-registered agreements are not accepted.
6. Apply for bank loan. Approach banks with your DPR. Get the loan sanction letter — this is required for most subsidy applications.
7. Submit subsidy application. Online (for NHB, PMEGP, PMFME) or through DHO (for MIDH). Attach all required documents.
8. Wait for inspection & approval. Officials will visit your proposed site. Do NOT start construction before receiving the Letter of Intent (LOI).
9. Implement the project. Build as per approved specs. Maintain all bills, invoices, and photos.
10. Submit completion report. After project completion, submit proof to the sanctioning authority. A joint inspection is conducted.
11. Subsidy released. Amount deposited into your bank loan account, reducing your outstanding principal.

10. Documents Checklist

Keep these ready before starting any application:

11. Common Mistakes That Get Applications Rejected

1. Starting construction before approval. If you begin work before receiving the LOI/sanction letter, the subsidy will be denied during inspection. This is the #1 reason for rejection.
2. Aadhaar name mismatch. Even a minor spelling difference between your Aadhaar and application causes rejection. Get corrections done at your UIDAI centre first.
3. Incomplete or weak DPR. Missing financial projections, no market analysis, or unrealistic revenue claims. Show ₹15,000–25,000/month profit for a small unit, not ₹1 lakh. Reviewers have seen hundreds of mushroom DPRs — be realistic.
4. Applying to multiple agencies for the same component. KVIC, DIC, and NHB share databases. Duplicate applications get flagged and both are rejected.
5. No registered land document. An informal or unregistered agreement is not accepted. The lease must be legally registered (minimum 5 years for PMEGP, 10 years for NHB).
6. Forgetting the completion report. Many farmers set up the unit but never submit photos, bills, and completion certificate to the sanctioning authority. Without this final step, the subsidy is never released.
7. Wrong category selection on PMEGP portal. Selecting “Service” instead of “Manufacturing” for a production unit, or choosing the wrong industry code.

Official Portals & Useful Links

• MIDH Official Portal — midh.gov.in
• National Horticulture Board — nhb.gov.in
• PMEGP / KVIC Portal — kviconline.gov.in
• PMFME Portal — pmfme.mofpi.gov.in
• Agriculture Infrastructure Fund — agriinfra.dac.gov.in
• MyScheme.gov.in — Search all government schemes by state

Related Articles

• Mushroom Farming Subsidy — Application Guide
• Mushroom Farming Business Plan
• Cost & Profit Analysis
• How to Start Mushroom Farming
• Best Mushroom Farming Training in India

State-Wise Farming Guides

• Haryana
• Uttar Pradesh
• Bihar
• Himachal Pradesh
• Maharashtra
• Punjab

Dr. Sonia Dahiya

Founder of Shroomy Delights Agro Tech & the “Mushroom Lady of Haryana.” 10,000 kg/month production, 100+ farmers trained. Helps aspiring farmers navigate government subsidy schemes for mushroom farming.

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