Punjab offers Rs 80,000 subsidy for mushroom cultivation

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The North News

Chandigarh, January 12

The Punjab government has announced financial support for farmers looking to diversify into mushroom cultivation, saying a small production unit can be set up with an investment of about ₹2 lakh, backed by a subsidy of up to ₹80,000. The scheme is part of the state’s wider push to encourage farmers to move away from traditional crops and adopt horticulture as a more profitable and sustainable alternative, officials said.

Speaking on Monday, Horticulture Minister Mohinder Bhagat said mushroom farming offered high returns with relatively low investment, limited land use and reduced water requirements. A basic unit, he said, can typically be established in an area of around 200 square feet.

Under the scheme, the Punjab Horticulture Department is providing a subsidy of up to 40% of the project cost, capped at ₹80,000 for units costing ₹2 lakh. The minister said the initiative was aimed at boosting farm incomes while promoting diversification in agriculture.

The programme is being implemented under the leadership of Chief Minister Bhagwant Singh Mann, whose government has repeatedly highlighted horticulture as a key tool to improve rural livelihoods.

Mr Bhagat said farmers interested in availing the subsidy could register with their nearest district horticulture officer. Applicants will need to submit documents including their Aadhaar card, land records, bank account details and photographs.

He added that the department would also provide technical guidance and support to farmers to help them set up and run mushroom production units successfully.