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Hydroponic farming setup cost, subsidy, investment and profit margin in India

Some people get suddenly excited by hearing the thumbnail or profit margin that people claim in hydroponic farming. Such people easily become ready to start their own hydroponic farming business at the commercial level. But sadly they don't know the truth of training, setup, investment, and profit margin in hydroponic farming. It is better to get at least a practical idea to start a hydroponic farming business. 

The following will help you to get an idea of investment and setup cost(initial and per cycle) in hydroponic farming. 

When we talk about Hydroponic farming, we can relate it with eco-friendly methods of agriculture.

Hydroponic farming setup cost/investment in India

Hydroponic farming is soil-less vertical farming that is very helpful in urban agriculture. We use water mixture minerals necessary requirements that plants need. We don't use soil in hydroponic farming. Even in a small space, we can practice hydroponic farming.  
Its like similar to the working of in a precision farming system to develop a hydroponic farming precisely.

In a 5000 square feet area, following are requirements and setup cost to start hydroponic farming-


hydroponic farming setup cost in India

Hydroponic farming One time setup cost

  • Polyhouse shelter- 600000 INR
  • NFT system
  1. Pipes(4 inches)- 700000 INR
  2. Pipes(2 inches)- 12000 INR
  3. Pipe connectors- 120000 INR

  • Stand platform(hold 32 pipes each)- 100000 INR (40 Stands)
  • Tank(20000-liters)- 55000 INR
  • Plastic tank(1000 liter)- 15000 INR(2 tanks)
  • Plastic tank(5000 liters)- 22000 INR
  • Water pump(1-HP)- 30000 INR(4 Pumps)(Types of irrigation pumps)
  • Water pump(0.5-HP)- 10000 INR(2 pumps) 
  • Net cups- 100000 INR(20000 plus)
  • Water cooler- 60000 INR
  • RO system- 50000 INR
  • pH meter- 1200 INR
  • TDS meter- 2000 INR
  • Labor cost- 10000 INR

Total one time cost- 1887200 to 2000000 INR

Hydroponic farming per cycle cost 

Considering, the hydroponic farming system give yield every month. So following is per cycle cost in hydroponic farming-

  • Electricity-  15000 INR/month
  • -Seeds- 20000 INR/month
  • Fertilizers- 20000 INR/month
  • Labor- 10000 INR/month
  • Maintenance- 5000 INR/month
  • Packing and transportation-  10000 INR/month

Per cycle cost- 80000 INR

Hydroponic farming profit in India

On a 5000 square feet area, the following are the outcomes in one-time yield of crops like lattice-

  • Total production- 3200 kg
  • Waste- 1000 kg
  • Total left- 2200 kg
  • Value in market- 350 INR/kg
  • Value of yield- 770000 INR

Profit margin in India

Profit margin= Total earning per cycle- per cycle investment
Profit margin= 7,70,000 - 80,000 = 6,90,000 INR/cycle

The margin of profit- 6,90,000 INR/cycle

Hydroponic farming investment per square foot

In 5000 square feet, 
  • Total investment(including one time and per cycle)- 20,00,000 INR
Hence
  • One time investment per square foot- 400 INR
  • Per cycle investment for one square foot- 16 INR

Hydroponic farming profit per square foot

  • Total profit margin on 5000 square feet area- 6,90,000 INR
Profit margin per square foot- 138 INR/cycle
Also read

Hydroponic farming subject of Investment in India

India is very diverse by means of climate and temperature. There are various regions where climate and agricultural atmospheric conditions are totally different. 

Another important thing is the demand and supply of agricultural products.

This leads that only urban areas have a scope of buying and selling products in hydroponic farming. In rural areas only marketing strategy can be interesting otherwise hydroponic farming will fail there because of a lack of awareness. 

If you are going to have a lattice hydroponic farm then it will cost you on different scales in different regions of India. 

In warm cities, it will cost more than cooler ones. In high-demand regions, it will provide you more profit but vice versa with short demands.

The main portion of your investment spend on the arrangement and management of temperature and atmosphere for plants otherwise things are almost the same in all the cities. 

Advantages of hydroponic farming

  • Hydroponic farming is highly profitable. 
  • It is an example of high yield just in a small place in any season or weather condition. 
  • The hydroponic vegetables are highly accurate and balanced in fibers, minerals, and vitamins. 
  • It is the first method of doing soil-less farming/cultivation. For those countries where agricultural land is very short or less, they can practice hydroponic farming even at their home. 

What are the disadvantages of hydroponic farming?

Although hydroponic farming is a profitable business plant still there are some disadvantages of hydroponic farming. 

Setup cost is very high

With a complex structure of hydroponic setup, the initial cost is very high. This is the main reason why most people hesitate to own hydroponic farming. People believe that at a cheaper cost than a hydroponic farming setup, they can establish other agriculture businesses easily.  

Setup implement takes time

Even in a small room, it is not easy to set up a hydroponic farm. With the proper 

Maintenance work is difficult. It takes more time than a mushroom farming setup. 

Ask for regular checks and treatment

If you don't check the regular pH and TDS of the hydroponic farm then it is not guaranteed that your business is at stake. You have to check the oxygen supply to work properly.

It is very hard to shift the whole hydroponic farming setup from one place to another

Suppose you are not ok with the current place for hydroponic farming and you set the hydroponic farm there then it is not easy to shift the whole setup to another place. It takes too much time, energy, and cost.

Hydroponic training is essential

Without hydroponic training, you can't think about maintaining or running a hydroponic business. If you step up on the basis of text knowledge, then there are high chances that you will do many mistakes with your hydroponic farm. It can affect your whole investment return. 

Some other disadvantages

  • Costlier than soil crop cultivation. Most of the portion of investment uses in the setup of hydroponics and electricity. 
  • Necessarily need for knowledge regarding pH and TDS of every plant or at least the multiple plants in the hydroponic farming setup.
  • Need proper and regular maintenance on a daily and weekly basis. 
  • The success rate is so low for ordinary beginners. 
  • The mortality rate can increase by a single mistake in pH and TDS maintenance. 
  • Traditional farmers can not do it. Although experts say that it is possible for everyone but practically, traditional farmers can't invest such a big amount in hydroponic farming.  

Is hydroponic farming profitable in India?

Yes, hydroponic farming is profitable in odd diverse countries like India but still, there is both sort of views on hydroponic farming in India; some claim it is a disaster but some say that it is highly profitable.

In India, there is not a large digit of highly profitable results of hydroponic farming. There are more people who lose money in the investment of hydroponic farms. 

Most successful people say that if you want high profits in hydroponics then learn things from basics, do things on a basic level and keep them basic till harvesting. 

It is true that without training, hydroponic farming will give you negative results. 

There is a huge scope of hydroponic farming in India and people getting aware of it. Sooner or later, hydroponic will take over modern farming methods in India. 

Hydroponic farming subsidy

If the government wants to attract farmers to a business then they provide them a subsidy according to the total investment done.

In the case of hydroponic farming subsidies, there are not too many subsidy schemes run by the central government. There are only a few states like Maharashtra, where hydroponic farming subsidy is up to 50% of the total value of hydroponic. 

The reason for fewer subsidies for hydroponic farming is simple. In India, hydroponic farming is failed to attract people. People believe that they can better practice other businesses with profit than hydroponic farming. Also, hydroponic farming doesn't contribute even 1% of the total agriculture yield in India, so there are very few subsidies schemes in India.

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