Mushroom Unit for ₹5 lakh: Cost, Subsidy & Income (2026)
As per the government model report, the basic Mushroom Unit (61 kg/day) costs ₹5 lakh. A one-room unit for growing oyster mushrooms. 40% of cost norm (MIDH) — up to ₹1.5 lakh support; your share is ab
As per the government model report, the basic Mushroom Unit (61 kg/day) costs ₹5 lakh. A one-room unit for growing oyster mushrooms. 40% of cost norm (MIDH) — up to ₹1.5 lakh support; your share is about ₹50 thousand. In year 3, sales are about ₹12.8 lakh with net profit ~17% of sales (estimate).
01Where will the money come from?
Total cost ₹5 lakh
From your pocket only ₹50 thousand — the subsidy is credited to your loan account.
What does the money go into?
- Building/civil₹3 lakh
- Machinery₹50 thousand
- Other/remaining cost₹25 thousand
- Working capital₹1.25 lakh
02Income over 5 years
Yearly sales (blue bar) · Net profit (green)
net profit ~17% of sales · payback ~1.9 years · Includes interest, depreciation and a 5% yearly rise in costs.
035 steps to start
- Get trainedLearn the work, find buyers
- Prepare the siteShed/room, power, water
- Get a DPR madeProject report as the bank needs it
- Apply for loan + subsidy40% of cost norm (MIDH)
- Produce and sellIncome starts from year 1
04Who is it right for?
053 mistakes that cause losses
06Frequently asked questions
How much space does a mushroom unit need?
About 1,000–2,500 sq ft of covered space is enough for a basic plant.
What government support is there for the Mushroom Unit?
40% of cost norm, linked to a bank loan.
How much can the Mushroom Unit earn?
In the government model, year-3 sales are about ₹12.8 lakh with net profit ~17% of sales; payback ~1.9 years.
Mushroom Unit — Want to start?
Tell us your district and budget — an expert will suggest the next step for free.
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Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
Utkrishi Team
Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 86250 77758