§1What this business is
A frame of GI pipe covered with UV plastic, where high-value crops such as capsicum, cucumber, tomato or gerbera grow with drip and foggers. Produce is sold in city mandis, supermarkets, hotels and flower markets. Off-season crops fetch good prices.
§2Is it right for you?
Who it is for
An educated farmer who takes training and is connected to city buyers.
Who it is not for
Someone who builds one only for the subsidy, without training or market links.
Advantages
- High prices for off-season crops
- Less water (drip), fewer pests
- Up to 50% subsidy under MIDH/NHB
- Income per acre is many times that of an open field
Drawbacks
- Large capital; the plastic must be replaced every 4–5 years
- Technical farming — mistakes are costly
- Damage from storms and hail
- Less profit if the city mandi is far away
Skills you need
- Protected cultivation training
- Fertigation
- Pest and disease control
- Market linkage
Why difficulty 4/5: Large capital + technical farming + weather risk.
§3Market
Who buys
- Vegetable wholesalers and mandis
- Supermarkets and hotels
- Florists and flower traders
How it sells
- Mandi sale
- Direct supply to retail chains and hotels
- Flower auctions and traders
Good to know
- Telangana MIDH: marketing the produce is the farmer's own job.
- Polyhouse insurance is compulsory before the first subsidy instalment is released (Telangana MIDH).
- Suitable crops: flowers, vegetables, medicinal and aromatic plants, spices (Telangana MIDH).
- MIDH subsidy is 50% of the unit cost (₹420 per sq m for a tubular polyhouse).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Naturally ventilated polyhouse, tubular GI structure (up to 4,000 sq m per farmer) | — | ₹840 per sq m |
| Fan-and-pad polyhouse | — | ₹1,400 per sq m (₹1,610 in hilly areas) |
| Shade net house, tubular structure | — | ₹710 per sq m |
| Plastic mulching | — | ₹32,000 per hectare |
| Drip system: PVC main lines, 16 mm LLDPE laterals, inline drippers (1.3–2.4 litres/hour), valves | — | — |
| Fogging system with 4-way foggers | — | — |
| Filtration unit: disc and sand filters, venturi, air release valve | — | — |
| Cladding: UV-stabilised 200 micron 5-layer poly film; 40-mesh insect net; 50% shade net | — | — |
| GI trellis wire for capsicum, tomato and cucumber | — | — |
From: Telangana State Horticulture Mission – MIDH Implementation Guidelines 2023-24 (2023) · National Horticulture Board – Cost Norms and Pattern of Assistance (MIDH, XII Plan) (2015)
- Planting material and cultivation: high-value vegetables₹140 per sq m
- Planting material and cultivation: carnation and gerbera₹610 per sq m
- Planting material and cultivation: rose and lilium₹426 per sq m
- Planting material and cultivation: orchid and anthurium₹700 per sq m
- GI steel for the structureabout 22 tonnes per acre
From: National Horticulture Board – Cost Norms and Pattern of Assistance (MIDH, XII Plan) (2015) · Telangana State Horticulture Mission – MIDH Implementation Guidelines 2023-24 (2023)
In our raw material database
§5Licences & registration
- Land papers
- Registration with the State Horticulture Department/MIDH (for the subsidy, only through an empanelled vendor)
- Electricity connection
§6Schemes & subsidies
- NHBCentralActive35% back-ended subsidy
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
MIDH/NHB protected cultivation subsidy (50% of the cost norm). AIF may give an interest subvention for precision/protected farming infrastructure (confirm eligibility with the bank). Stand-Up India for agri-allied units.
§7Money
How the investment is worked out: Min = MIDH 2023-24 cost norm, naturally ventilated tubular polyhouse ₹840/sq m × 4,000 sq m (≈1 acre, the max eligible area) = ₹33.6 L (structure only). Max = NHB cost ceiling for hi-value vegetables under polyhouse ₹47 L/acre (polyhouse with drip & fogger ₹33.76 L + cultivation ₹5.60 L + add-ons).
MIDH norm 2023-24 (Telangana guidelines); NHB ceiling from a 2015 document — actual rates are higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Fresh vegetables fall under APEDA's Fruits & Vegetables group; cut flowers under Floriculture & Seeds.
§9Risks — where people fail
- Structure damage (storm)
- Pest outbreak in closed environment
- Price crash
- High capex
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working polyhouse farming (1 acre) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Land papers, Registration with the State Horticulture Department/MIDH (for the subsidy, only through an empanelled vendor)), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Polyhouse Farming (1 acre)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- Telangana State Horticulture Mission – MIDH Implementation Guidelines 2023-24 (2023)
- National Horticulture Board – Cost Norms and Pattern of Assistance (MIDH, XII Plan) (2015)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.