Yes — government support exists for mushroom farming in India. Several central schemes can help fund a new mushroom unit, and many states add programmes of their own on top. The schemes are real; the paperwork is where most farmers struggle. This guide explains the main schemes in plain language.
Last updated: September 2026. Scheme rules change — always confirm the current rules with the scheme’s own department or portal.
The Main Government Schemes
These are the central schemes mushroom projects most often use. Each summary is deliberately short and free of numbers — the exact support, conditions and paperwork change from year to year, so ask the scheme’s agency, your bank or your district horticulture office what is open this year before you plan around one.
National Horticulture Board (NHB)
The NHB runs a credit-linked scheme called Development of Commercial Horticulture, and its guidelines list integrated mushroom production units as eligible. Credit-linked means the support is tied to a bank term loan: you borrow for an approved project, and the subsidy is released against the loan later ("back-ended") rather than paid to you up front. NHB projects need a detailed project report and are inspected before approval.
MIDH — Mission for Integrated Development of Horticulture
MIDH is the central government’s umbrella mission for horticulture, and mushrooms are one of the crops it covers. The centre and the states fund it together, and it reaches farmers through each state’s horticulture mission or department — so what a mushroom grower can actually apply for under MIDH depends on the state’s plan for that year. Your district horticulture officer is the right first stop.
PMFME — for mushroom processing
PMFME (PM Formalisation of Micro food processing Enterprises) is for food processing, not for growing. It supports small units — individuals, self-help groups and farmer producer organisations — with credit-linked support, training and help with branding and marketing. For a mushroom farm it matters when you want to add value: drying, powder, pickle or packaged products.
PMEGP — for new rural enterprises
PMEGP (the Prime Minister’s Employment Generation Programme, run by the Ministry of MSME) helps people start new micro enterprises with a margin-money subsidy on a bank-financed project. It is aimed at new enterprises rather than plain crop growing, so for mushroom it usually comes up for units like spawn production or processing. Whether your unit qualifies depends on the activity — ask the implementing agency or your bank.
State horticulture schemes
On top of the central schemes, many states run their own mushroom programmes through their horticulture departments — and this is where support differs most. Bihar’s horticulture directorate and Haryana’s horticulture department, for example, both publish mushroom programmes on their own portals. If you farm in Punjab, Himachal Pradesh, Uttar Pradesh or anywhere else, check your state horticulture department’s website or district office for what is open this year — state schemes open and close on their own calendars.
Where CropGyan Fits In
We are mushroom growers and consultants, not a government agency — we cannot sanction any subsidy. What we do, as part of our farm-setup consultancy, is help you plan a unit that is worth funding: a realistic site plan, the right mushroom for your climate, and guidance through the project-report stage so what you submit describes a farm that can actually work.
Talk to us about your project — or read the farm-setup guide and the mushroom farming FAQs.