Punjab pushes mushroom farming with 40% subsidy scheme

Published 4 July 2026 · india

The Punjab government has announced a subsidy of up to Rs 80,000 for farmers to establish small mushroom production units as part of its efforts

The Punjab government has announced a subsidy of up to Rs 80,000 for farmers to establish small mushroom production units as part of its efforts to promote crop diversification and enhance farm incomes. The financial assistance will be provided under the state's "State Plan" scheme, under which the Department of Horticulture will offer a 40 per cent subsidy, subject to a maximum of Rs 80,000, to eligible beneficiaries. Read Full Story Punjab Horticulture Minister Mohinder Bhagat said farmers can set up a small mushroom production unit at an estimated cost of around Rs 2 lakh, making it an affordable option for those looking to diversify beyond conventional crops.

He said mushroom cultivation requires comparatively less land and water than many traditional crops while offering the potential for higher returns with relatively low investment. According to the minister, a small mushroom production unit can be established in an area of approximately 1,800 square feet, making the scheme particularly suitable for small and marginal farmers who often have limited landholdings. Bhagat said the initiative forms part of the Punjab government's broader strategy to encourage crop diversification, reduce dependence on water-intensive farming and create additional income opportunities for the state's farming community.

Farmers interested in setting up mushroom production units can apply under the State Plan scheme by contacting their nearest District Horticulture Officer, he said. DEPT OF HORTICULTURE TO PROVIDE GUIDANCE The minister added that the Department of Horticulture will also provide technical guidance, training and other necessary support to help beneficiaries successfully establish and operate their mushroom cultivation units. The government expects the scheme to encourage more farmers to adopt horticulture-based enterprises, which are considered more sustainable and economically viable in the face of changing climatic conditions and increasing pressure on agricultural resources.

Punjab has been promoting crop diversification through various initiatives aimed at reducing dependence on the traditional wheat-paddy cultivation cycle. Officials believe expanding mushroom cultivation could not only improve farmers' incomes but also generate additional employment opportunities in rural areas through value-added agricultural activities. Ends With PTI inputs