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Polyhouse Farming Business | ?50 Lakh Subsidy | Cost, Profit & ROI Explained #podcast

  • 29-Jan-2026

 1. What is Polyhouse Farming?

Polyhouse farming is a type of protected cultivation where crops are grown inside a structure made with transparent polyethylene sheets. This controlled environment helps regulate temperature, humidity, light, and pests, enabling year-round production of high-value vegetables, flowers & exotic crops regardless of weather outside.

 2. Benefits & Importance of Polyhouse Farming

BenefitsWhy It Matters
Controlled climateCrop growth unaffected by heat, rain, cold
Year-round productionMultiple cropping cycles per year
Higher yields2–5× more produce than open-field farming
Better quality produceUniform size/color/market demand
Water efficiencyDrip irrigation saves 40–90% water
Pest & disease controlLower chemical use, healthier crops
Employment generationSkilled labour jobs in rural areas
Suitable for export marketsMeets quality and standard requirements

 3. Merits & Demerits (Quick Table)

MeritsDemerits
High productivity & qualityHigh initial investment
Year-round croppingRequires technical knowledge
Less weather riskMaintenance costs add up
Water & fertilizer efficientElectricity for fans/irrigation may add cost
Better market pricesNeeds good market linkages
Suitable for high-value cropsNot ideal for all crops

 4. Cost of Polyhouse Setup in India

Approximate costs vary widely based on size & tech level:

ItemCost Estimate
Natural polyhouse structure?700–?1,200 per sq.m
Climate-controlled polyhouse?1,500–?2,200 per sq.m
1-acre polyhouse setup?40 lakh – ?50 lakh (before subsidy)
Labour + installation?1.5 lakh – ?2 lakh
Maintenance & inputs?50,000 – ?1 lakh

Total investment (1 acre) ? ?30 lakh – ?50 lakh before subsidy (varies with design & tech).

 5. Profit & ROI (Example Estimates)

Profitability depends on crops chosen (e.g., capsicum, cucumber, tomato, flowers):

???? Estimated on 1 acre:

Revenue: ?20–?30 lakh per year (high-value crop)

Net Profit: ~?8–?15 lakh per year after costs

ROI Period: ~2–3 years if managed well

With effective marketing and crop choice, ROI can be faster and higher.

 6. Government Support & Subsidies

 Main Central Govt Schemes

The Indian government supports polyhouse farming via:

? Mission for Integrated Development of Horticulture (MIDH)
…offers subsidy for construction + irrigation systems.

? National Horticulture Board (NHB)
…up to 50% subsidy on total project cost. Can be up to ?56 lakh per project under certain conditions.

? National Horticulture Mission (NHM)
…50% subsidy on polyhouse construction.

 State Government Subsidies

Many states add extra support — e.g., in Bihar up to 75% subsidy under certain schemes.

 Categories & Rates

General farmers: ~50% subsidy typical.

SC/ST / small & marginal: can get higher, e.g., 75–95% in some states.

 7. Documents Needed to Apply

? Land ownership papers or lease agreement
? Identity and address proof
? Detailed project report (DPR)
? Bank loan sanction (if credit-linked)
? Crop plan and polyhouse design details
? Water & power availability proof

 8. How to Apply for Subsidy

Step-by-Step (general India process)

Visit District Horticulture Office or Agriculture Office

Get application form for Protected Cultivation / Polyhouse subsidy

Fill and attach documents (DPR, land proof, ID, bank sanction)

Submit to local horticulture authority

Approval & field inspection

Subsidy disbursed (often after bank loan release & project progress)

? Subsidy may be back-ended (released after proof of expenditure), especially under NHB.

????? 9. Best Crops for Polyhouse Farming

Common high-value, high-profit crops:

???? Capsicum
???? Cucumber
???? Tomato
???? Flowers (rose, gerbera)
???? Strawberry
???? Leafy veggies
Herbs & nursery plants

 10 FAQs About Polyhouse Farming

Q1. Is polyhouse farming profitable?
???? Yes — with high-value crops and good management, net profit can be significant, often ?8–15 lakh/acre/year or more.

Q2. How long before I recover my investment?
???? Typically 2–3 years, depending on crop and market conditions.

Q3. What subsidy percentage can I get?
???? Usually 50%, sometimes up to 75–95% for special categories or states.

Q4. What crops give the highest ROI?
???? Capsicum, cucumber, flowers, strawberries, exotic vegetables.

Q5. Do I need a bank loan?
???? Often yes — to avail credit-linked subsidy under NHB/MIDH.

Q6. Can polyhouses work in all climates?
???? Yes — but you may need ventilation, cooling, or heating depending on region.

Q7. Is water supply mandatory?
???? Yes — reliable water is crucial for drip/irrigation systems.

Q8. Can I export polyhouse produce?
???? Yes, if quality meets export standards.

Q9. What size is best for beginners?
???? ~1,000 sq.m to 4,000 sq.m depending on budget and crop plan.

Q10. What is included in subsidy?
???? Structure, irrigation, fertigation, and sometimes planting material.

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