Under MIDH a private mushroom unit gets a 40% subsidy on the project cost, up to the cost norm your state uses (for example ₹20 lakh, so up to ₹8 lakh). It is credit-linked: you take a bank loan and the subsidy is credited to the loan account after the unit starts. Enter your cost to see your numbers.
Mushroom Farming Subsidy Calculator
Pick the unit, enter your project cost and see the MIDH subsidy, bank loan and your own share. मशरूम यूनिट पर कितनी सब्सिडी मिलेगी, तुरंत देखें।
Free estimate, not approval. MIDH: 40% credit-linked back-ended subsidy on the lower of your project cost and the state cost norm. Checked 13 Oct 2026.
Worked example: ₹20 lakh mushroom production unit
A farmer sets up a mushroom production unit costing ₹20 lakh in a state that uses a ₹20 lakh norm. The subsidy is 40%, i.e. ₹8 lakh. If the farmer puts in 10% (₹2 lakh) and takes an ₹18 lakh bank loan, the loan falls to about ₹10 lakh once the subsidy is credited. In West Bengal, with a ₹30 lakh norm, a ₹30 lakh unit would get ₹12 lakh.
Mushroom subsidy norms (as reported, checked 13 Oct 2026)
| Unit | Cost norm | Subsidy (private) |
|---|---|---|
| Mushroom production unit | ₹20 lakh (Uttarakhand, Rajasthan); ₹30 lakh (West Bengal) | 40%, credit-linked |
| Spawn (seed) making unit | ₹15 lakh (Uttarakhand); ₹20 lakh (West Bengal) | 40%, credit-linked |
| Compost making unit | ₹20 lakh (Uttarakhand) | 40%, credit-linked |
| Public sector units | Same norms | 100% |
Some states also run small-farmer mushroom schemes (huts, kits or training) with their own rates. Ask your district horticulture office what is open in your state.
Who can apply
- Individual farmers and entrepreneurs
- Farmer groups, FPOs, cooperatives and SHGs
- You need a bank that will sanction the loan, and usually mushroom training
How to apply
- Get mushroom training (KVK, state horticulture or agriculture university).
- Prepare a project report and get a bank to agree to the loan.
- Apply to the district horticulture officer or on the state horticulture portal with the project report, bank letter, land papers, Aadhaar and photo.
- Start work only after the approval letter.
- After the unit is running and inspected, the subsidy is credited to your loan account.
Mushroom farming subsidy: frequently asked questions
How much subsidy is given for mushroom farming? Under MIDH a private mushroom production unit gets 40% of the project cost, up to the state cost norm. With a ₹20 lakh norm, the maximum is ₹8 lakh.
Is a bank loan needed for mushroom subsidy? Yes, for private units. The subsidy is credit-linked and back-ended, so it is credited to your bank loan account after the unit is running. Rajasthan, for example, asks for a loan of about 50–75% of the cost.
Is there subsidy for a mushroom spawn (seed) unit? Yes. A private spawn making unit also gets 40%, with a norm of about ₹15 lakh in Uttarakhand and ₹20 lakh in West Bengal, as reported.
Can a small farmer get mushroom subsidy without a big unit? Some states run small schemes for mushroom huts, kits or training. They are not part of the ₹20 lakh unit norm. Ask your district horticulture office.
Where do I apply for mushroom subsidy? With the district horticulture officer or on your state horticulture portal, after a bank agrees to the loan.
Sources: MIDH cost norms as listed by the West Bengal food processing and horticulture department; Uttarakhand and Rajasthan horticulture scheme pages (via publicservicesmap.in). Official MIDH guideline PDFs could not be opened from our server on 13 Oct 2026, so norms are marked as reported. Estimate, not approval.
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