Mushroom Farming Subsidy in India 2026 — NABARD, NHB & State Schemes

Indian mushroom farmers have access to significant government support — yet most miss out simply because they don't know what's available. From NABARD's agri-tech loans to the NHB's 40% capital subsidy and state-level schemes, the financial case for mushroom farm automation becomes even stronger with government support.

National Horticulture Board (NHB) — 40% Capital Subsidy

The NHB offers one of the most valuable subsidies for mushroom farmers:

• Subsidy rate: 40% of project cost for general category; 50% for SC/ST/North-East
• Maximum subsidy: ₹30 lakh for grow room infrastructure + equipment
• Eligible items: Insulated grow rooms, humidification systems, climate controllers, automation equipment, composting infrastructure
• Application: Online via NHB portal (nhb.gov.in) with project report

Impact for Contol-X purchase: With 40% NHB subsidy, ₹1,13,000 controller costs effectively ₹67,800 after subsidy.

NABARD Agricultural Loan for Mushroom Farm Automation

NABARD funds mushroom farm automation through its RIDF (Rural Infrastructure Development Fund) and special agri-tech schemes:

• Loan amount: Up to ₹25 lakh for commercial mushroom units
• Interest rate: 7–9% per annum (below market rate)
• Moratorium: 1–2 year repayment moratorium for new units
• Eligibility: Registered commercial mushroom farms, FPOs, cooperatives
• Application: Through NABARD-linked regional rural banks

State-Level Mushroom Farming Schemes

Haryana — Horticulture Department

• 40–50% subsidy on mushroom growing room construction
• Subsidy on spawn production equipment
• Training programs with stipend at HARTICOF, Gharaunda
• Contact: Haryana Horticulture Department, Panchkula

Uttar Pradesh — Horticulture Mission

• UP Horticulture Mission provides 50% subsidy on mushroom cultivation unit setup
• Applicable for OBC, SC/ST, small/marginal farmers
• Climate control equipment included in eligible expenditure

Andhra Pradesh — Mushroom Mission 2026

The Andhra Pradesh government launched the ₹13,000 crore Mushroom Mission in 2026 — the largest state-level mushroom farming initiative in India's history. The mission includes:

• Setting up 50,000 mushroom farming units across AP
• Subsidised automation equipment for all new units
• Cold chain infrastructure development
• Training and technology transfer centers

Himachal Pradesh

• HP Horticulture Department: 33–50% subsidy for mushroom unit establishment
• Special schemes for button mushroom in Solan district (India's mushroom capital)

PM Kisan Sampada Yojana — Food Processing + Automation

For mushroom farms that also process (sliced mushrooms, dried mushrooms, pickle):

• 35% grant on project cost (50% for North-East/hilly areas)
• Maximum grant: ₹2.5 crore
• Climate-controlled storage and processing automation are eligible

How to Apply — Step by Step

1. Register your mushroom farm with the district horticulture officer
2. Prepare a project report (Poem Techno can help with technical specifications)
3. Apply to NHB online at nhb.gov.in or through your local horticulture office
4. Get bank loan sanction (many NHB schemes require bank linkage)
5. Purchase equipment after sanction (subsidy comes as reimbursement)
6. Submit bills and inspection report to receive subsidy amount

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