March 20, 2025

Polyhouse Farming: Subsidy, Cost, Profit, and Project Report

Today, let us explore the polyhouse subsidy, profit potential, construction costs, and overall economics of polyhouse farming.

Table of Contents

Introduction to Cultivation, Cost, Profit, and Government Subsidy

What is Polyhouse Cultivation and Why is it Gaining Popularity? Well, over the centuries, farming methods have continuously evolved, leading to innovative agricultural practices. One such modern method is polyhouse cultivation, where crops are grown in a controlled environment.

In a polyhouse, factors like temperature, humidity, light, and fertilizers are managed using automated systems. This controlled setup allows crops to grow efficiently, regardless of external weather conditions.

The growing interest in polyhouse cultivation is due to its numerous benefits. It offers protection from pests, diseases, and unpredictable weather, resulting in higher yields and better quality produce. Additionally, polyhouses enable farmers to grow off-season crops and high-value plants, increasing their profitability.

To promote modern farming methods and increase agricultural productivity, several Indian states offer subsidies for polyhouse farming under schemes like the National Horticulture Mission (NHM) and State Horticulture Missions. Farmers can receive financial assistance covering a significant portion of the polyhouse construction cost.

These subsidies are available in states like:

  • Karnataka
  • Maharashtra
  • Kerala
  • Telangana
  • Andhra Pradesh
  • Madhya Pradesh
  • Bihar
  • Uttarakhand
  • Uttar Pradesh
  • West Bengal
  • Gujarat
  • Rajasthan
  • Punjab
  • Haryana
  • Tamil Nadu
  • Chhattisgarh
  • Odisha
  • Assam
  • Meghalaya
  • Himachal Pradesh
  • Arunachal Pradesh
  • Nagaland

Why is Polyhouse Cultivation Gaining Popularity?

Polyhouse cultivation is rapidly gaining traction among farmers due to its ability to generate higher profits and enable year-round crop production without relying on natural weather conditions. With a controlled environment that regulates temperature, humidity, and other factors, polyhouse farming minimizes crop damage caused by unpredictable weather and ensures consistent yields.

Another key advantage of polyhouse cultivation is the reduced risk of pests and diseases. The enclosed structure protects crops, lowering the need for chemical pesticides and ensuring better-quality produce.

Polyhouse Cost for 1 Acre

The cost of setting up a 1-acre polyhouse can vary based on factors like location, materials used, and the level of automation. Different states in India offer financial support through government subsidies, making polyhouse farming more accessible for farmers.

Traditional farming in open fields has always been challenging due to unpredictable weather conditions and the constant threat of pests and diseases. To meet the increasing demand for food and other agricultural products, it has become essential to adopt farming methods that ensure year-round crop production without relying on external weather conditions.

Polyhouse cultivation offers a reliable solution. By creating a controlled environment, farmers can grow vegetables, flowers, and other crops more efficiently compared to conventional field cultivation.

Cucumber cultivation in polyhouse

Benefits of Polyhouse Farming and How to Avail Subsidies

Polyhouse farming offers numerous benefits that make it an attractive choice for modern agriculture. Here are some key advantages:

  • Controlled Environment: Plants grow in a carefully regulated setting, ensuring optimal temperature, humidity, and light for healthy growth.
  • Year-Round Cultivation: Crops can be produced throughout the year, eliminating dependency on seasonal changes.
  • Reduced Pest and Disease Impact: The enclosed structure significantly minimizes exposure to pests and diseases.
  • Climate Resilience: External weather conditions, such as heavy rains or extreme temperatures, do not affect plant growth.
  • High-Quality Produce: Compared to traditional farming, polyhouse cultivation results in better-quality fruits, vegetables, and flowers.
  • Uniform Growth: Plants grow evenly with fewer instances of transplanting shock, leading to healthier crops.
  • Improved Sanitation: Polyhouses can be easily maintained with proper hygiene, reducing the risk of contamination.
  • Shorter Cropping Period: Faster crop cycles lead to increased production capacity and quicker returns.
  • Efficient Drainage and Aeration: Well-designed drainage and ventilation systems promote better root development and plant health.
  • Effortless Fertilizer Management: Fertilizer application becomes easier and more efficient with automated systems using drip irrigation or sprinkler irrigation, ensuring precise nutrient delivery to plants.
  • Convenient Post-Harvest Handling: Tasks like harvesting, grading, and transporting crops are streamlined, making the entire supply chain more efficient.
  • Higher Annual Crop Yield: Due to the controlled environment, reduced pest risks, and optimal resource management, farmers can achieve a significantly higher yield throughout the year compared to traditional farming.

These benefits make polyhouse cultivation an ideal choice for farmers looking to enhance productivity and profitability.

Polyhouse vs Greenhouse: Key Differences and Which is Better

Both polyhouses and greenhouses are protected structures designed for cultivating specific crops by providing a controlled environment. While they share a common purpose, there are key differences between them.

  • Greenhouse: Typically constructed with glass panels, a greenhouse is often referred to as glasshouse. Once the plants start growing inside, it is commonly termed a greenhouse.
  • Polyhouse: Made using polyethylene sheets instead of glass, a polyhouse is a cost-effective alternative for farmers. It provides similar climate control benefits at a lower construction cost.

Types of Polyhouse Cultivation Systems for Maximum Yield

Further, these polyhouse systems are grouped into 3 subcategories.

  1. Low cost or low tech polyhouse.
  2. Medium cost or medium-tech polyhouse.
  3. Expensive or Hi-tech polyhouse.

Low tech Polyhouse System

This polyhouse system can be built with low-cost material and maintaining this system is very easy. Usually, the construction of polyhouse is carried out with local material such as wood and bamboo. Generally, Ultra Violet (UV) film is being used as a cladding material. This type is suitable for cold climatic conditions. Temperature and humidity can be controlled by using shade nets. There would not be any other controlled devices are used in this type of polyhouses.

Medium-Cost or Medium-Tech Polyhouse

    • Built using durable Galvanized Iron (G.I.) pipes for better structural strength.
    • To withstand strong winds, the polyhouse is firmly anchored to the ground using screws.
    • Environmental factors like humidity and temperature are controlled using cooling pads, mist controllers, thermostats, and exhaust fans.
    • This type is ideal for areas with dry or composite weather conditions and is beneficial for crops requiring continuous care.

Expensive or Hi-Tech Polyhouse

    • Equipped with a fully automated control system to manage temperature, humidity, fertilizer application, irrigation, and other environmental parameters.
    • Ensures optimal growing conditions for crops throughout the year.
    • Suitable for growing high-value crops or conducting advanced agricultural research.

Best Crops for Polyhouse Farming with High Returns

Vegetable crops: Tomatoes. Cucumbers. Coriander (Cilantro) Eggplants (Brinjal). Okra (Lady Finger). Green beans. Bell Peppers (Capsicum). Cabbage. Spinach. Chilli. Carrots. Broccoli. Microgreens. Lettuce. Summer Squash. Leafy vegetables. Herbs. Ginger. Turmeric. Fruit crops: Watermelons. Peaches. Strawberries. Raspberries. Citrus fruits. Polyhouses are best for raising nursery plant seedlings Growing ornamental plants, Cut flower production. Hybrid seed production of flowers.

Polyhouse Cost Analysis, Profit Estimation, and Government Subsidy Details

Polyhouse Construction Costs

The cost of constructing a polyhouse largely depends on the type of system you choose and the total area of construction. Prices may vary over time and across regions, so consider these estimates as a rough guide:

  1. Low-Cost or Low-Tech Polyhouse
    • Without exhaust fans and cooling pads
    • Estimated Cost: ₹400 to ₹500 per square meter
  2. Medium-Cost or Medium-Tech Polyhouse
    • Includes cooling pads and exhaust fans but without automation
    • Estimated Cost: ₹900 to ₹1200 per square meter
  3. Expensive or Hi-Tech Polyhouse
    • Fully equipped with an automatic control system for temperature, humidity, irrigation, and fertilizers
    • Estimated Cost: ₹2500 to ₹4000 per square meter

These estimates can vary based on factors like material quality, location, and additional features. It is advisable to get multiple quotes from local service providers before starting construction.

Types of Polyhouse Costs

When planning a polyhouse project, the expenses can be broadly classified into two categories:

  1. Fixed Costs
    • These are one-time investments that remain constant regardless of production cycles.
    • Includes expenses for:
      • Land acquisition or leasing
      • Construction of office rooms, labor rooms, and packing rooms
      • Cold storage facilities for preserving harvested crops
      • Installation of drip irrigation or sprinkler systems
    • Fixed costs are essential for setting up the infrastructure.
  2. Variable/Recurring Costs
    • These are ongoing expenses that fluctuate based on production and operational activities.
    • Includes:
      • Manures and fertilizers for crop nourishment
      • Pesticides and disease control chemicals
      • Planting materials like seeds, seedlings, or saplings
      • Electricity for maintaining environmental controls
      • Transportation charges for moving produce to markets
    • Effective management of recurring costs ensures better profitability.

The following Hi-tech Polyhouse/Greenhouse cost is for 1 Hectare or 2.5 Acres land.

Item

Cost (INR)

Land and Development

₹4,50,000

Office Rooms

₹3,00,000

Telephone, Fax, and Computer

₹1,00,000

Polyhouse Construction

₹14,00,000

Planting Material and Planting

₹30,00,000

Cold Storage

₹9,00,000

Refrigerated Transport Van

₹2,00,000

Grading & Packing Room

₹5,00,000

Generator Set

₹2,50,000

Power Related Installations

₹2,00,000

Water Supply System, Drip Irrigation/Sprinkler System, and Misting Liners

₹8,00,000

Furniture Related

₹75,000

Total

₹81,75,000

 

Here is a table representing the recurring cost items for polyhouse subsidy in Indian Rupees:

Item

Cost (INR)

Manures and Fertilizers

₹1,50,000

Plant Protection

₹1,50,000

Preservatives

₹3,00,000

Packing Material

₹2,00,000

Airfreight

₹1,20,00,000

Labor Charges

₹3,00,000

Commission / Insurance

₹15,00,000

Employee Salaries

₹6,00,000

Electricity Charges / Year

₹6,00,000

Overhead Costs

₹1,00,000

Maintenance Cost

₹1,00,000

Miscellaneous Expenses

₹4,00,000

Total

₹1,63,00,000

Total cost = Fixed cost + Recurring cost = Rs.81, 75,000 + Rs.1, 63,00,000 = 2,45,75,000 (2 Crore forty five lakhs seventy five thousand.

1 Hectare Rose Cut Flower Polyhouse Project Report: Cost, Profit, and Subsidy

Dutchrose farming in polyhouse

Just to calculate the polyhouse profit, let us take a Rose cut flower cultivation for the project of above mentioned 1 Hectare /2.5 acres polyhouse.

Rose Cut Flower Cultivation Profit Estimation in a 1-Hectare Polyhouse

  • Number of Rose Plant Seedlings: 60,000 per hectare
  • Rose Flower Yield per Plant: 100 to 150 flowers
  • Quality Rose Flowers for Export: 90 to 100 flowers per plant
  • International Market Price: ₹8 to ₹12 per flower

Calculation of Exportable Rose Flowers

  • Assuming an average yield of 125 flowers per plant:
    60,000 plants×100 flowers/plant=6,000,000 flowers60,000 ext{ plants} imes 100 ext{ flowers/plant} = 6,000,000 ext{ flowers}

Gross Income through Exports

  • Considering a minimum of 55 export-quality flowers per plant:
    6,00,000 flowers×₹55 per flower=₹3,30,00,0006,00,000 ext{ flowers} imes ₹55 ext{ per flower} = ₹3,30,00,000

Net Profit=Gross Income−Total Cost (Fixed + Recurring) ext{Net Profit} = ext{Gross Income} - ext{Total Cost (Fixed + Recurring)}

  • Gross Income: ₹3,30,00,000
  • Total Cost (Fixed + Recurring): ₹2,45,75,000
  • Net Profit:

₹3,30,00,000−₹2,45,75,000=₹84,25,000₹3,30,00,000 - ₹2,45,75,000 = ₹84,25,000

Net Profit for the First Year: ₹84,25,000 (Eighty-Four Lakhs and Twenty-Five Thousand)

Here is a clean and organized table for the polyhouse profits/income details for different crops:

Crop

Profit/Income (INR per Acre)

Gerbera Flowers

₹42 to ₹45 Lakhs

Ginger

₹15 to ₹16 Lakhs

Turmeric

₹14 to ₹15 Lakhs

Colored Capsicum

₹13 to ₹15 Lakhs

Tomato

₹12 to ₹13 Lakhs

Dutch Rose

₹34 to ₹35 Lakhs

Cucumber

₹9 Lakhs

Note:
The figures mentioned above are subject to change based on factors such as flower quality and export market demand. However, polyhouse cultivation typically offers 5 to 7 times higher yield and profits compared to traditional open-field farming. This makes it a more reliable and profitable choice for farmers seeking consistent income.

How to Apply for a Polyhouse Subsidy

Tomato cultivation in polyhouse

Several states in India are promoting polyhouse cultivation by offering subsidies. Depending on the state, farmers can receive up to 80% subsidy on their project costs.

For a 1-hectare cut flower polyhouse project:

  • Total Project Cost: ₹2,45,75,000
  • Subsidy (80%): ₹1,96,60,000
  • Farmer Contribution: ₹48,40,000

For information about polyhouse subsidies in different states of India, you can contact the following authorities:

  • Horticulture Department
  • National Bank for Agriculture and Rural Development (NABARD)
  • National Horticulture Board (NHB)

These organizations provide details on the exact subsidy percentage and application procedures.

Edited by Gayathri

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