Mushroom Farming Subsidy in India
Government Schemes, Loans & Benefits
Mushroom farming in India is rapidly growing as a profitable agri-business, and the Government of India actively supports it through multiple subsidy schemes, loans, and financial assistance programs. Whether you want to know how to start mushroom farming in India as a beginner farmer, startup, or commercial entrepreneur, you can get up to 50% government subsidy for mushroom farming and low-interest loans to start or expand your mushroom farming business.
This page provides complete details of the mushroom farming subsidy India 2026 schemes, including eligibility, benefits, mushroom farming project subsidy amount, and how to apply. If you need a comprehensive mushroom farming business plan India, subsidies will heavily reduce your capital requirements.
Top Government Mushroom Farming Subsidy Schemes in India
Explore the best horticulture subsidy India programs to fund your agri business subsidy India goals.
MIDH – Mission for Integrated Development of Horticulture
The MIDH scheme is the most popular mushroom cultivation subsidy scheme in India.
- Subsidy: 50% of total project cost
- Maximum Subsidy: ₹10 lakh
- Project Cost Limit: ₹20 lakh
- Who Can Apply: Farmers, entrepreneurs, FPOs, agri startups
- Best For: Small to medium mushroom farming units
Benefits:
- Reduces initial investment cost significantly
- Supports infrastructure like growing rooms, compost units
- Encourages scientific mushroom cultivation
How to Apply: Apply through your State Horticulture Department or district agriculture office.
NHB – National Horticulture Board Scheme
The NHB scheme supports large-scale commercial mushroom farming, perfect for a robust button mushroom subsidy India project.
- Subsidy: 40% of project cost
- Who Can Apply: Private companies, entrepreneurs, agribusiness owners
- Focus: Commercial and export-oriented mushroom farming
Benefits:
- Ideal for high-investment mushroom farms
- Covers cold storage, processing units, and infrastructure
How to Apply: Apply through the official NHB portal or via bank-linked project approval.
HMHNH Scheme (North East & Himalayan)
Higher subsidy for farmers in special regions.
- Subsidy: 50%
- Maximum Amount: ₹37.50 lakh
- Who Can Apply: Farmers in NE & Himalayan states
- Best For: Integrated mushroom farming units
Benefits:
- Higher financial support
- Encourages rural and hill-area farming
NABARD Mushroom Farming Scheme
NABARD provides robust financial assistance through their mushroom farming loan India options.
- Type: Loan-based support
- Loan Amount: Based on project size
- Repayment Period: Up to 7 years
Benefits:
- Easy financing for mushroom farming projects
- Supports small to large scale businesses
- Linked with subsidy schemes like MIDH
How to Apply: Apply through NABARD-supported banks with a detailed project report.
MUDRA Loan
Pradhan Mantri Mudra Yojana - Best scheme for small or oyster mushroom farming subsidy India startups.
- Shishu: Up to ₹50,000
- Kishor: Up to ₹5 lakh
- Tarun: Up to ₹10 lakh
- Collateral: Not required
Benefits:
- Easy loan approval & Ideal for beginners
- No security required
How to Apply: Apply through any bank, NBFC, or online Mudra portal.
PM Kisan Sampada Yojana
Supports mushroom processing and value addition. Focuses on food processing units including mushroom drying, packaging, and cold storage to help increase profit through processing and support export-oriented business.
Bihar State MIDH Mushroom Subsidy
Special state-level support offering 50% subsidy (maximum ₹1 lakh per unit on a project cost up to ₹2 lakh). Promotes local mushroom production and is easy for small farmers to access.
Extra Subsidy for Women / SC / ST
An additional 10% subsidy is available under MIDH and NHB schemes to encourage inclusive farming and provide higher financial support.
Agriculture Infrastructure Fund (AIF)
Supports infrastructure development.
- Interest Subsidy: 3% on loans
- Use: Cold storage, mushroom growing units
Benefits: Reduces loan burden and provides long-term financing support.
State Government Schemes
Many states provide additional subsidies. Farmers should contact their State Horticulture Department for region-specific schemes:
- • Madhya Pradesh
- • Uttar Pradesh
- • Maharashtra
- • Rajasthan
- • Karnataka
FAQ – Mushroom Farming Subsidy India
What is the subsidy for mushroom farming in India?
Farmers can get 40% to 50% subsidy under schemes like MIDH and NHB.
How to apply for mushroom farming subsidy?
You can apply through the State Horticulture Department or banks linked with NABARD.
Which scheme is best for mushroom farming?
MIDH is best for small farmers, while NHB is suitable for large commercial units.
Can I get a loan without collateral?
Yes, under the MUDRA loan scheme, no collateral is required.
Is mushroom farming profitable in India?
Yes, mushroom farming is a high-profit, low-investment agri business with strong market demand.
Need Help with Your DPR?
A perfect Project Report is the key to getting your subsidy approved. Our experts draft bankable DPRs that meet NHB and MIDH standards.
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