MKUY Subsidy for Mushroom Farming in Odisha 2025: A–Z Complete Guide
Are you planning to start a mushroom farming business in Odisha? The Mukhyamantri Krushi Udyog Yojana (MKUY) provides a huge opportunity for farmers, entrepreneurs, and women Self-Help Groups to set up mushroom cultivation projects with financial support. This article covers everything A–Z about the MKUY subsidy for mushroom farming—eligibility, benefits, subsidy amount, application process, DPR preparation, required documents, and much more.
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| MKUY Subsidy for Mushroom Farming in Odisha 2025: A–Z Complete Guide |
📌 Table of Contents
- Introduction to MKUY
- Why Mushroom Farming in Odisha?
- Objectives of MKUY Scheme
- Eligibility Criteria
- Types of Mushroom Farming Supported
- Subsidy Amount & Percentage
- Eligible Infrastructure & Expenditure
- Documents Required
- Step-by-Step Application Process
- How to Register on GO-SUGAM Portal
- Preparation of Detailed Project Report (DPR)
- MKUY Subsidy Calculation Example
- Time Frame & Implementation Rules
- Common Mistakes to Avoid
- Success Stories in Odisha
- Comparison with Other Mushroom Subsidy Schemes
- Frequently Asked Questions (FAQs)
- Conclusion
1. Introduction to MKUY
The Mukhyamantri Krushi Udyog Yojana (MKUY) is a flagship scheme launched by the Government of Odisha in June 2018. Its purpose is to promote commercial agriculture and allied enterprises by providing Capital Investment Subsidy (CIS). Mushroom cultivation is one of the important sectors covered under MKUY, where farmers and entrepreneurs can get financial support to set up sheds, composting units, pasteurization chambers, and processing facilities.
2. Why Mushroom Farming in Odisha?
Odisha has a tropical climate, which is highly favorable for growing different varieties of mushrooms such as paddy straw mushroom, oyster mushroom, and button mushroom. Rising demand for mushrooms in urban areas, hotels, and food processing industries makes mushroom farming one of the most profitable agri-enterprises. Additionally, mushroom farming requires low land area, quick returns, and provides self-employment opportunities for women and youth.
3. Objectives of MKUY Scheme
- Promote entrepreneurship in agriculture and allied sectors.
- Create employment opportunities in rural and semi-urban areas.
- Provide financial assistance to establish mushroom units and infrastructure.
- Encourage women, SC/ST, and Self-Help Groups to become agri-entrepreneurs.
- Strengthen value chain by supporting processing and marketing.
4. Eligibility Criteria
Who can apply for MKUY mushroom subsidy?
- Individual farmers and entrepreneurs (18–60 years).
- Women, SC/ST, Transgender, PwD, and Agri Graduates (special category).
- Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), Cooperatives, NGOs.
- Start-ups registered in agriculture and allied sectors.
5. Types of Mushroom Farming Supported
- Paddy Straw Mushroom – Commonly grown in Odisha, low cost, fast returns.
- Oyster Mushroom – High demand in hotels and restaurants, suitable for indoor farming.
- Button Mushroom – Requires controlled conditions, high investment but profitable.
- Milky Mushroom – Suitable for warm climate, increasing popularity.
6. Subsidy Amount & Percentage
| Beneficiary Type | Subsidy % | Maximum Subsidy |
|---|---|---|
| General Individual Entrepreneur | 40% | ₹1 Crore |
| SC/ST, Women, Transgender, PwD, Agri Graduates | 50% | ₹1 Crore |
| Group Entities (FPOs, NGOs, SHGs – mixed) | 40% | ₹50 Lakh |
| All-Members-in-Special-Category Groups | 50% | ₹1 Crore |
7. Eligible Infrastructure & Expenditure
Under MKUY, the following mushroom farming infrastructure is eligible for subsidy:
- Mushroom cultivation sheds (low-cost or hi-tech).
- Composting and pasteurization chambers.
- Spawn production units.
- Cold storage and packaging facilities.
- Processing units (drying, pickling, canning).
- Water supply systems, electrification, and solar dryers.
8. Documents Required
- Aadhaar Card and Voter ID.
- Land Record / Lease Agreement / NOC.
- Bank Account and Passbook.
- Photograph and Signature.
- Detailed Project Report (DPR).
- Category Certificate (SC/ST/Women/Transgender/PwD).
- Educational Certificate (for agri graduates).
9. Step-by-Step Application Process
- Prepare your mushroom farming project plan and DPR.
- Register on GO-SUGAM portal.
- Fill in the MKUY application form.
- Upload documents and DPR.
- Pay application fee (₹2000 for general, ₹500 for SC/ST/Women/SHG).
- Project scrutiny by APICOL and Horticulture Department.
- Receive Go-Ahead Letter if approved.
- Implement the project within 2 years.
- Submit Utilization Certificate and claim subsidy.
10. How to Register on GO-SUGAM Portal
The GO-SUGAM portal is the official digital platform for all agriculture-related subsidies in Odisha. Steps to register:
- Visit sugam.odisha.gov.in.
- Create an account using Aadhaar and mobile OTP.
- Select MKUY Scheme from the scheme list.
- Fill personal, land, and project details.
- Upload required documents in PDF/JPEG format.
11. Preparation of Detailed Project Report (DPR)
The DPR is the most important document in getting approval for MKUY subsidy. A good DPR should include:
- Project Title and Objective.
- Details of Mushroom Variety.
- Production Capacity (kg/ton per cycle).
- Land Details and Infrastructure Plan.
- Cost of Construction and Machinery.
- Financial Projections (Cash Flow, ROI, Payback).
- Marketing Strategy and Buyers.
- Employment Generation Potential.
12. MKUY Subsidy Calculation Example
Suppose you want to set up a mushroom farm with an investment of ₹40 lakh (excluding land cost).
- Fixed Capital Investment = ₹40,00,000
- General Entrepreneur Subsidy (40%) = ₹16,00,000
- SC/ST/Women/Agri Graduate Subsidy (50%) = ₹20,00,000
This means your effective project cost reduces to ₹20–24 lakh depending on your category.
13. Time Frame & Implementation Rules
- Project must be completed within 2 years of approval.
- Delay of up to 6 months: 20% subsidy deduction.
- Delay beyond 1 year: No subsidy will be given.
- Subsidy is released after project verification and bank loan clearance (if applicable).
14. Common Mistakes to Avoid
- Not preparing a detailed DPR with realistic financials.
- Incomplete documents submission.
- Delays in project completion.
- Not maintaining proper records of expenditure.
- Ignoring market linkage and buyers.
15. Success Stories in Odisha
Several entrepreneurs in Odisha have successfully started mushroom businesses with MKUY support:
- A women SHG in Khurda district set up a paddy straw mushroom unit with ₹10 lakh investment and 50% subsidy, now earning ₹60,000/month.
- A young graduate in Ganjam started a button mushroom farm with ₹45 lakh investment, got ₹20 lakh subsidy, and now supplies to Bhubaneswar hotels.
16. Comparison with Other Mushroom Subsidy Schemes
| Scheme | Coverage | Subsidy | Remarks |
|---|---|---|---|
| MKUY (Odisha) | Mushroom sheds, compost, spawn units | 40–50% up to ₹1 Cr | State-specific, easy access |
| National Horticulture Board (NHB) | All India | 50% up to ₹10 lakh/unit | Central govt scheme |
| Mission for Integrated Development of Horticulture (MIDH) | All India | 40–50% | Implemented via state horticulture |
| Mission Shakti (Odisha) | Women SHGs | ₹1500 for 30 beds | Small-scale incentive |
17. Frequently Asked Questions (FAQs)
Q1. Can I apply without land ownership?
Yes, leased land with valid documents is allowed.
Q2. Is bank loan mandatory?
No, self-financed projects above ₹10 lakh are also eligible.
Q3. Can I apply as a student?
You must be at least 18 years old to apply.
Q4. Do I need training in mushroom farming?
It is highly recommended. You can get training from OUAT, KVKs, or horticulture offices.
Q5. Can subsidy be availed for spawn production unit?
Yes, spawn labs and production chambers are eligible.
18. Conclusion
Mushroom farming in Odisha is a profitable agri-enterprise, and with the MKUY subsidy, the financial burden becomes much lighter. By availing 40–50% subsidy up to ₹1 crore, entrepreneurs can build mushroom sheds, spawn units, and processing facilities to establish a sustainable business. If you are serious about mushroom farming, prepare a strong DPR, apply through the GO-SUGAM portal, and take advantage of this golden opportunity.
👉 Pro Tip: Start small, learn the techniques, and then scale up using MKUY subsidy for maximum benefits.
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