NHB Subsidy: Financial Support for Mushroom Production Units 2024

The National Horticulture Board (NHB) has updated its operational guidelines to prioritize high-value crops like mushrooms. Under the 'Development of Commercial Horticulture through Production and Post-Harvest Management' scheme, entrepreneurs can avail of a back-ended capital investment subsidy. This is particularly beneficial for SMEs looking to export processed mushrooms to the EU and Middle Eastern markets. As per the NHB Scheme Guidelines, for general areas, the subsidy is capped at 40% of the project cost, while for hilly and scheduled areas, it goes up to 50%. The support covers the construction of growing rooms, compost units, and sophisticated spawn laboratories. Projects must be credit-linked to be eligible for the disbursement. ## Key points for SME units 1. **Technical Standards:** Must adhere to NHB-specified ventilation and hygiene norms. 2. **Bank Appraisal:** A term loan of at least 15% of the project cost is mandatory. 3. **Application Process:** IPA (In-Principle Approval) must be obtained before starting construction to ensure the subsidy claim is not rejected. This financial cushion allows exporters to invest in cold-chain integration from the farm gate to the shipping port.