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Mushroom subsidy in Tamil Nadu

The most a mushroom growing unit draws in Tamil Nadu

₹89.25 lakh

The same integrated mushroom unit where the project includes canning, priced at the higher of the two per-tonne norms the clause states.

Paid by NHB Scheme No. 1.

Private applicant, general area, 35%. You reach that only by building all the way to the scheme’s own limit of 300 MT of installed capacity, which the scheme costs at ₹255.00 lakh. A smaller project draws proportionally less.

Your project must be bigger than 50 MT of installed capacity to qualify at all. Below that it pays nothing at all, not simply less.

Type
State
Which rate applies
General area
Schemes that apply
9
NHB Operational Guidelines, January 2025Printed January 2025Show the clause, the page and our archived copy
Printed in the document as “1 (vi) Integrated Mushroom Production Unit in project mode, with canning”.

National Horticulture Board Operational Guidelines JANUARY 2025 (NHB Operational Guidelines, January 2025)

National Horticulture Board, Ministry of Agriculture & Farmers Welfare, Government of India (Plot No. 85, Sector-18, Institutional Area, Gurugram 122015)

Printed January 2025

Chapter 02, Scheme No. 01, cost norms table, item 1 (vi) (PDF p.17, printed page 7). Item column, verbatim: "Integrated Mushroom Production Unit in project mode". Cost norms column, verbatim: "As per NHB norms for a minimum installed capacity above 50 MT and upto 300 MT in…Read the full clause
Chapter 02, Scheme No. 01, cost norms table, item 1 (vi) (PDF p.17, printed page 7). Item column, verbatim: "Integrated Mushroom Production Unit in project mode". Cost norms column, verbatim: "As per NHB norms for a minimum installed capacity above 50 MT and upto 300 MT in controlled conditions @ Rs. 75000/MT without canning and @ Rs. 85000/ MT with Canning including Production Unit + Compost making Unit." Pattern of assistance column, verbatim: "Credit linked subsidy @ 40% of eligible project cost in General area and @ 50% of eligible project cost for NER and Himalayan States, Scheduled Areas and UTs of Andaman &Nicobar Islands, Lakshadweep Islands, Jammu & Kashmir and Ladakh." Those two percentages were cut to 35% and 45% by NHB's Public Circular of 21 August 2026, cited separately on every rate this record publishes. Read with Chapter 04, Important Instructions, item 16 (PDF p.51, printed page 40), verbatim: "In case of cold storage/CA storage, Mushroom, Ripening chamber, Reefer Van, Cold room and Pre-cooling unit, the EPC is worked out on the basis of capacity." Chapter 01 dates the whole instrument: "The Scheme guidelines shall be effective from 01.01.2025."

PDF p.17 (Chapter 02, item 1(vi)); PDF p.51 (Chapter 04, instruction 16); PDF p.14 (Chapter 01, "Date of Coming into force")

Read on 14 September 2026 by chirag.

The most any one of the 9 schemes that apply here pays for the growing rooms themselves, never a total of them. The growing rooms are not all these schemes fund: see what else they price.

Tamil Nadu is paid at the ordinary rate, unless your own site sits inside a notified scheduled area or vibrant village. That is decided site by site, not state by state, so it is worth checking for your plot. Tamil Nadu’s own scheme is verified, with 1 rule for mushroom cultivation, below, though we could not confirm from the document that the scheme is still running.

See how these schemes actually work for the myths, limits and loopholes behind every figure.

What decides whether you get anything

These are the conditions NHB Scheme No. 1 carries, the scheme behind the figure above. Each of the other schemes on this page carries its own, set out on its own page.

Does this need a bank loan? (credit linked)
Yes. The subsidy rides on a bank loan: a bank sanctions the loan and the subsidy is adjusted against it.
When does the money arrive? (back ended)
After you build, and after an inspection. The subsidy is held in a reserve account and released once the project has been inspected and found complete, not paid up front.
Must it be approved before you start work? (sanction before commencement)
Sanction before commencement applies. The approving authority must issue its sanction before eligible expenditure is incurred. Read what starting work early costs you.

Tamil Nadu’s own scheme

TN MIDH-NHM Mushroom (women)

Department of Horticulture and Plantation Crops, Government of Tamil Nadu

Verified. Read on 13 September 2026, against the primary government document. We could not confirm the scheme is still running, so check with the department before you rely on it.

Applies nationally, but resolves to no rate for a general applicant in this area.

What we read, and why we cannot confirm it is still currentRead the full note

Tamil Nadu, VERIFIED 2026-09-13. This is the task's headline question: the Wayback-recovered `MIDH - NHM - AAP 2021-22` extract (see the file's own prior history, kept below for provenance) printed "Empowering women through Small scale Mushroom Production Units @ Rs.1.00 lakh/unit" without ever saying whether that ₹1.00 lakh was the ASSISTANCE or the unit's COST, a genuinely load-bearing ambiguity, since reading it the wrong way doubles a beneficiary's expected entitlement. Three prior passes (and this task's own brief) named a CAG audit report or the state's Demand for Grants as the untried source that would settle it unambiguously.

FOUND: the Demand for Grants companion document itself. Every year the Tamil Nadu "Agriculture and Farmers Welfare Department" tables a "Policy Note" alongside Demand No. 5 in the Legislative Assembly, a narrative account of every scheme the Demand funds, department by department. Its Horticulture and Plantation Crops chapter (pp.52-92 of the 2022-2023 edition) covers the SAME scheme, the SAME MIDH-NHM sub-mission, and the SAME women-targeted mushroom component as the AAP extract, one year later, and states in full prose rather than a bare table header:

"To empower women to convert themselves into entrepreneurs, an assistance of Rupees one lakh is being provided for the establishment of small-scale mushroom production units." (Policy Note 2022-2023, printed p.70, section 2.2.2 "Mission for Integrated Development of Horticulture - National Horticulture Mission (MIDH-NHM)")

"An assistance of Rupees one lakh" is unambiguous prose, not a column header open to two readings, it settles the question the AAP table could not: ₹1.00 lakh/unit IS the assistance, not the unit's cost. This also independently corroborates the AAP's own arithmetic (Fin = Phy × Rs.1.00 lakh in every district row, closing "TOTAL 100 100.000", a government financial-outlay column that only balances if Fin is itself the outlay/assistance, not a cost norm requiring a further rate applied to it).

Route: found via the Wayback CDX index (the mode that recovered UP, Rajasthan, Assam and others), walking `tnhorticulture.tn.gov.in` for anything filed under `policy_note` or "Policy Note" in its upload paths, a document class no prior pass on this file had tried. The live path 404s today (soft-404 pattern, matching this domain's Mushroom-AAP file); the complete capture was fetched from `web.archive.org` at timestamp 20230809011038, and its `content-length` matches `x-archive-orig-content-length` exactly (6,604,517 bytes both), so this is not one of the truncated captures flagged elsewhere in this project's notes.

Chapter 2's own table of contents ("2. Horticulture and Plantation Crops ... 52-92") confirms section 2.2.2 sits inside the Horticulture and Plantation Crops chapter specifically, not a general-Agriculture chapter merely mentioning horticulture in passing, this is the Horticulture Department's own account of its own scheme, tabled by its own Minister (the cover page names Thiru. M.R.K. Panneerselvam, Hon'ble Minister for Agriculture and Farmers Welfare, Demand No. 5, Government of Tamil Nadu 2022).

No percentage and no underlying total-project-cost norm is printed anywhere near this sentence (checked the full chapter, pp.52-92), the document states a flat per-unit rupee figure, nothing more, so this is modelled with `basis: 'perUnit'` and the ENTIRE figure as the disbursed amount (`rateByClass: { woman: 100 }`), the same technique this project uses for Himachal Pradesh's flat per-camp training reimbursement, not a claim that "100% of a project cost" is printed, only that the whole perUnit figure is what reaches the beneficiary. The women-only scoping is the document's own wording ("to empower women"), matching the AAP's own "Empowering women through..." header.

CHECKED FOR CURRENCY, not just existence: also fetched the department's most recent Policy Note live, 2025-26 (`tnhorticulture.tn.gov.in/tnhorticulture/site_assets/site-pdfs/ policy_note/agri_e_pn_2025_26.pdf`, HTTP 200, read in full). Its own MIDH-NHM section no longer repeats the "empower women ... Rupees one lakh" sentence; for 2024-25 it instead reports "Two Nos of Mushroom units at an outlay of Rs.0.16 crore are being established", a sharply smaller scale than the AAP's 100 units, and an aggregate outlay figure this project will NOT divide into an implied per-unit rate (the same trap Jharkhand's budget line hit, Jharkhand's) since two units at one shared outlay could split unevenly. This does not unsettle the 2022-23 finding, the document that states the rate, plainly, in prose, still says what it says, but it means the SAME rate is not reconfirmed as still current in 2025-26, so `status` stays 'unknown' rather than 'active', and a future reviewer should check whether the women's small-scale mushroom line survives at all in the current Policy Note before treating ₹1 lakh as todays's live rate for a fresh application.

PRESERVED FOR PROVENANCE (from the pre-verification history of this file): the AAP extract itself, `tnhorticulture.tn.gov.in/uploads/Mushroom Details(2021-22).pdf` (Wayback capture 20230324211748), is a beneficiary list naming ~100 individual women with their villages and mobile numbers. Per the standing instruction on this file, it has deliberately NOT been archived into content/sources/, nothing in this verified record needs it, and copying a hundred people's phone numbers into this repository to support a figure already independently confirmed by a clean, aggregate-only Policy Note would be indefensible. Cited here by Wayback timestamp only, exactly as the prior agent left it.

Central schemes that apply in Tamil Nadu

These apply everywhere in India; what changes from state to state is the share they pay. Each line shows the most that scheme pays for any one item at Tamil Nadu’s rate, and the document it comes from. Between them they also fund a compost yard, a spawn laboratory, a pack house and processing, a cold store, help with loan interest, a credit guarantee and machinery, each at its own rate.

  • MIDH₹210.00 lakh

    At most, for its biggest single item: The same Cold Storage Type-I, built instead as a pre-engineered building (PEB) frame combined with civil work and PUF/PIR panels, priced per tonne of storage capacity up to 5,000 MT, at a higher per-MT rate than the plain-civil row.

    Private applicant, general area, 35%.

    MIDH Operational Guidelines 2025Printed 31 December 2024Show evidence

    OPERATIONAL GUIDELINES MISSION FOR INTEGRATED DEVELOPMET OF HORTICULTURE (MIDH Operational Guidelines 2025)

    Department of Agriculture & Farmers Welfare, Government of India (published on nhb.gov.in)

    Printed 31 December 2024

    Annexure V, Item C.7 "Cold Storage Type-I (CS-1)", row (ii), verbatim: "Cold Storage Type-I is defined as CS-1 with Construction in combination of civil & PEB including PUF/PIR panels, Doors and Ante-rooms, Refrigeration Units, Electrical Installation, Administrative block,…Read the full clause
    Annexure V, Item C.7 "Cold Storage Type-I (CS-1)", row (ii), verbatim: "Cold Storage Type-I is defined as CS-1 with Construction in combination of civil & PEB including PUF/PIR panels, Doors and Ante-rooms, Refrigeration Units, Electrical Installation, Administrative block, Safety/Fire Safety and Hazard control and basic mezzanine structure." Cost Norms column, verbatim: "Rs. 12000/MT, (Max 5,000 MT capacity)." Pattern of Assistance column, verbatim: "Credit linked back-ended assistance @ 35% in General areas and 50% in the case of NE & Himalayan States, Scheduled areas, vibrant villages, Andaman & Nicobar and Lakshadweep Islands." plus "Note: Component has to be implemented in accordance to NCCD guidelines only."

    PDF p.66

    Read on 11 September 2026 by chirag.

    Verified against the primary government document.

    See all 8 items MIDH prices
  • NHB Scheme No. 1₹89.25 lakh

    At most, for its biggest single item: The same integrated mushroom unit where the project includes canning, priced at the higher of the two per-tonne norms the clause states.

    Private applicant, general area, 35%.

    NHB Operational Guidelines, January 2025Printed January 2025Show evidence

    National Horticulture Board Operational Guidelines JANUARY 2025 (NHB Operational Guidelines, January 2025)

    National Horticulture Board, Ministry of Agriculture & Farmers Welfare, Government of India (Plot No. 85, Sector-18, Institutional Area, Gurugram 122015)

    Printed January 2025

    Chapter 02, Scheme No. 01, cost norms table, item 1 (vi) (PDF p.17, printed page 7). Item column, verbatim: "Integrated Mushroom Production Unit in project mode". Cost norms column, verbatim: "As per NHB norms for a minimum installed capacity above 50 MT and upto 300 MT in…Read the full clause
    Chapter 02, Scheme No. 01, cost norms table, item 1 (vi) (PDF p.17, printed page 7). Item column, verbatim: "Integrated Mushroom Production Unit in project mode". Cost norms column, verbatim: "As per NHB norms for a minimum installed capacity above 50 MT and upto 300 MT in controlled conditions @ Rs. 75000/MT without canning and @ Rs. 85000/ MT with Canning including Production Unit + Compost making Unit." Pattern of assistance column, verbatim: "Credit linked subsidy @ 40% of eligible project cost in General area and @ 50% of eligible project cost for NER and Himalayan States, Scheduled Areas and UTs of Andaman &Nicobar Islands, Lakshadweep Islands, Jammu & Kashmir and Ladakh." Those two percentages were cut to 35% and 45% by NHB's Public Circular of 21 August 2026, cited separately on every rate this record publishes. Read with Chapter 04, Important Instructions, item 16 (PDF p.51, printed page 40), verbatim: "In case of cold storage/CA storage, Mushroom, Ripening chamber, Reefer Van, Cold room and Pre-cooling unit, the EPC is worked out on the basis of capacity." Chapter 01 dates the whole instrument: "The Scheme guidelines shall be effective from 01.01.2025."

    PDF p.17 (Chapter 02, item 1(vi)); PDF p.51 (Chapter 04, instruction 16); PDF p.14 (Chapter 01, "Date of Coming into force")

    Read on 14 September 2026 by chirag.

    Verified against the primary government document.

    See all 2 items NHB Scheme No. 1 prices
  • PMFMENothing for mushroom

    Read end to end against its primary document: it funds nothing for mushroom cultivation. That is a finding, not a gap.

    Verified against the primary government document.

  • AIFHelp on a loan, not a grant

    What this pays is an ongoing rate against loan repayments rather than a sum towards the build, so there is no single figure to show here. The rates are on its own page.

    Verified against the primary government document.

    See all 2 items AIF prices
  • NABARDNot read yet

    We have not yet read a primary document we can publish a rate against, so this atlas publishes none for it.

    Pending. We have not read a primary document for this yet. We do not publish unverified rates.

  • PMKSY Cold ChainNothing for mushroom

    Read end to end against its primary document: it funds nothing for mushroom cultivation. That is a finding, not a gap.

    Verified against the primary government document.

  • SMAM₹2.40 lakh

    At most, for its biggest single item: The same packing-machine financing, at the general-beneficiary rate.

    Private applicant, general area, 40%.

    SMAM Operational Guidelines 2024Printed 2024Show evidence

    SUB-MISSION ON AGRICULTURAL MECHANIZATION (SMAM) OPERATIONAL GUIDELINES - 2024 (SMAM Operational Guidelines 2024)

    Ministry of Agriculture and Farmers Welfare, Department of Agriculture & Farmers Welfare, Government of India

    Printed 2024

    Covering letter (PDF p.1), verified against pg-01.png, verbatim: "F.No.3-4/2020-M&T(I&P) (81291), Government of India, Ministry of Agriculture & Farmers Welfare, (Department of Agriculture & Farmers welfare), (Mechanization & Technology Division), Krishi Bhawan, New Delhi,…Read the full clause
    Covering letter (PDF p.1), verified against pg-01.png, verbatim: "F.No.3-4/2020-M&T(I&P) (81291), Government of India, Ministry of Agriculture & Farmers Welfare, (Department of Agriculture & Farmers welfare), (Mechanization & Technology Division), Krishi Bhawan, New Delhi, Dated: 7th November, 2024 — Subject: Revision in the Operational Guidelines of Sub Mission on Agricultural Mechanization under the umbrella of Rashtriya Krishi Vikas Yojana... The guidelines have been revised by inclusion of provisions for financial assistance for the FRA Patta holders beneficiaries." Section 5.1 (PDF p.11), Table of Contents entry and body text both read "Demonstration of newly developed agricultural/ horticultural/ crop residue management machines post-harvest technologies...", explicit confirmation the scheme's scope spans horticulture, not just field-crop agriculture, even though no individual crop (mushroom included) is ever named. See the noMushroomComponent-style finding recorded on the scheme (below) and the per-rule clauses for where the actual computable rates come from (Annexure-I, not Section 5.1, which funds institutional demonstration grants, not individual farmer purchases).

    PDF p.1 (covering letter); p.2 (cover); p.11 (§5.1); p.6 (§4.1); p.20 onward (Annexure-I); p.33 (items q/r/t cited on the rules)

    Read on 11 September 2026 by chirag.

    Verified against the primary government document.

    See all 6 items SMAM prices
  • PM-RKVYNot read yet

    We have not yet read a primary document we can publish a rate against, so this atlas publishes none for it.

    Pending. We have not read a primary document for this yet. We do not publish unverified rates.

What to do next

Work out what your own project would draw.

What you actually draw in Tamil Nadu depends on what you build and what it costs. The calculator asks where you are, what you are building and what it costs, then prices every scheme on this site against that, shows the document behind each figure, and writes a link you can send to your bank.

Open the calculator

Or have MushroomWale build it.

MushroomWale designs and builds mushroom farms. For the farms we build, we also prepare and pursue the claim: the DPR, the documents, the bank, the sanctioning department and the joint inspection.

We prepare and pursue the claim only for farms we build.

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