Guide to Setting Up Greenhouses in India

Greenhouse set up - krishicenter

Setting up a greenhouse (protected cultivation) in India involves several steps — technical, financial, and regulatory — and there are a number of government schemes that can help. Below is a detailed guide + an overview of relevant schemes in India.


1. What Is a Greenhouse & Why Use One

A greenhouse (or polyhouse / net house) is a structure that allows you to control micro-climatic conditions (temperature, humidity, light, ventilation) to improve plant growth and enable year-round cultivation. Benefits include:

  • Better yield and quality
  • Protection from extreme weather (heat, hail, heavy rain)
  • Efficient water use
  • Possibility to grow high-value crops (vegetables, flowers, fruits)

2. Types of Greenhouse / Protected Structures

Some common types used in India:

  • Naturally ventilated greenhouse: Simple structure, uses natural airflow.
  • Fan & pad (evaporative cooling) greenhouse: For more controlled cooling.
  • Shade net house / net house: Uses shade nets rather than transparent cover — good for reducing light, heat, and pests.
  • Plastic tunnel / poly tunnel: Simplified greenhouse, cheaper covering.
  • Hydroponic greenhouse: Soilless cultivation inside a controlled greenhouse.

3. Key Steps to Setting Up a Greenhouse

Here’s a step-by-step guide:

  1. Feasibility Study & Planning
    • Select crops: high-value vegetables / flowers / herbs / fruits.
    • Estimate demand & market: local market, export potential.
    • Choose location: land availability, water source, orientation.
    • Decide size: how many sq. meters.
  2. Design & Structure
    • Choose structure type (see above).
    • Frame material: tubular steel, wood, bamboo, etc.
    • Covering material: UV-stabilized polyethylene film, polycarbonate, glass.
    • Ventilation & cooling system: vents, fans + pad cooling if needed.
    • Irrigation system: drip / mist system for water efficiency.
    • Benching / flooring: raised beds or ground beds, depending on crop.
    • Environmental control: sensors (temperature, humidity), automation (optional).
  3. Construction
    • Hire a contractor or greenhouse company.
    • Prepare the foundation and frame.
    • Install covering, ventilation, irrigation, benches.
    • Test all systems (water, airflow) before planting.
  4. Soil / Substrate Preparation
    • If soil-based: prepare soil (mixing, sterilization if needed).
    • If hydroponic: choose substrate (coco coir, rock wool, perlite, etc.) and set up nutrient delivery.
  5. Crop Management
    • Planting: choose high-value varieties suited for protected cultivation.
    • Nutrient management: use fertigation (fertilizer + irrigation) for precision.
    • Pest & disease control: monitor, use integrated pest management.
    • Pollination (if needed): manual or using pollinators.
  6. Climate Monitoring & Control
    • Use sensors for temperature, humidity, soil moisture.
    • Control ventilation (open/close vents), run fans or cooling pads.
    • Adjust irrigation frequency based on plant needs.
  7. Harvesting & Post-Harvest
    • Plan for regular harvesting.
    • Use post-harvest infrastructure: packing room, cold storage or pre-cooling if needed.
  8. Marketing & Sales
    • Identify buyers (wholesalers, supermarkets, exporters).
    • Explore direct-to-consumer (farmers’ markets, online).
    • Consider branding or organic certification (if applicable).
  9. Operation & Maintenance
    • Regular maintenance of structure (repair film, check frame).
    • Clean and disinfect inside (especially for soil-based greenhouses).
    • Update system (automation, sensors) as you scale.

4. Cost Considerations

  • Structure cost depends on size, material, and technology (fan-pad systems are costlier).
  • Operating cost: electricity (for fans), water, fertigation, labor.
  • Maintenance: replacing plastic cover, repairing frame.
  • Infrastructure: packing, cold storage.

5. Risks & Challenges

  • High upfront investment.
  • Technical know-how required.
  • Pest / disease pressure in closed environments.
  • Market risk: need consistent demand.
  • Dependence on reliable water and power.

6. Government Schemes & Subsidies in India

There are several schemes from central and state governments to support greenhouse / protected cultivation.

Here are some key ones:

SchemeWhat It Supports / Helps With
Mission for Integrated Development of Horticulture (MIDH)Central mission covering protected cultivation (greenhouses, polyhouses), planting material, etc. (Agri Farming)
National Horticulture Board (NHB) – Protected Cultivation SubsidyProvides subsidy for protected structures: greenhouses, net houses, plastic tunnels, etc. (Agri Joy) – Subsidy is ~50% of admissible cost. (Agri Joy) – Cap: up to ₹1 Crore per project. (LinkedIn) – Additional subsidy in special regions (NE states / hilly) under NHB norms. (Agri Joy)
National Horticulture Mission (NHM)Part of MIDH; helps with greenhouse construction cost, shade nets, etc. (Agri Farming) – For greenhouses: 50% subsidy for up to a certain area per beneficiary (example: up to 4,000 sq m). (Agri Farming)
State-level SubsidiesVaries by state: – Rajasthan Greenhouse Scheme: Subsidy up to 50–70% depending on farmer category (SC/ST etc.). (Hortidaily) – Goa: Very attractive – up to 100% subsidy for greenhouse structure in certain cases. (Hortidaily) – Karnataka: Greenhouse subsidy via NHM + state; e.g., 50% central subsidy under NHM + additional state share. (Agri Farming)

StateSubsidy / Assistance for Protected Cultivation*Notes / Source
Maharashtra50% for polyhouse (up to 4000 sqm)G.R. – Rs 1060/sqm for tubular structure. (Maharashtra Government)
Telangana75% for general farmers; 95% for SC / STState polyhouse plan. (horticulture.tg.nic.in)
Haryana65% for general farmers; 85% for SCHaryana Horticulture Dept scheme. (hortharyana.gov.in)
Punjab50%–85% (depending on category)As per NHM / state horticulture mission. (alpha.kryzen.com)
Uttar Pradesh50%, up to cost norm of ~₹1,420/sqm for certain sizeMIDH / state scheme. (uphorticulture.gov.in)
Andhra Pradesh50% for planting materials & protected cultivation on polyhouseMIDH / state guidelines. (horticulture.ap.nic.in)

*These are for protected cultivation / polyhouse under state or MIDH-NHM / horticulture-mission schemes. There is also a central NHB subsidy (50%) which many states combine with.

Key Points & Caveats:

  • MIDH (Central): A lot of states follow the MIDH cost norms + subsidy pattern. According to its operational guidelines, the typical subsidy is 50%, limited to 4000 sqm per beneficiary for protected structures. rawe2020.in
  • State Variations: Many states provide top-up subsidies over the central share, which differs significantly (e.g., Telangana’s very high 95% for SC/ST, Haryana’s 65% general).
  • Technical Cost Norms: Cost norms (₹ per sqm) for structures (tubular, wooden, etc.) are defined in MIDH / NHB guidelines. rawe2020.in+2nhb.gov.in+2
  • Limit: The 50% subsidy under MIDH often has a ceiling of 4000 sqm (or equivalent) for many states / components.

7. Funding & Loans

  • Many banks offer agri-term loans for greenhouse / polyhouse projects.
  • Example: Central Bank of India offers loans; up to 80% of project cost depending on assessment.
  • Since NHB subsidy is often credit-linked, you’ll typically need a term loan from a bank to claim the subsidy.

8. Technical Tips & Best Practices

  • Use UV-stabilized polyethylene film; it lasts longer.
  • For cooling: use fan-pad systems in hot climates; for moderate climates, natural ventilation may suffice.
  • Use drip + fertigation for efficient nutrient delivery.
  • Monitor microclimate with sensors — this helps in optimizing irrigation and ventilation.
  • Train labour / staff: protected cultivation needs more technical skills than open-field farming.
  • Maintain hygiene to reduce pest/disease risk.
  • Keep good records: yields, costs, climate parameters.

9. Example Use Cases

  • A vegetable greenhouse for off-season tomatoes / peppers: The structure + drip irrigation can help you produce when market rates are high.
  • A flower greenhouse: high-value cut flowers (roses, gerberas) that need controlled climate.
  • Hydroponic farm: soilless, in greenhouse — good for leafy greens, herbs — high yield per sq.m.

10. How to Apply for Schemes

  1. Contact your State Horticulture Department or Horticulture Mission.
  2. Prepare a project report: cost estimates, layout, expected ROI.
  3. Visit NHB or MIDH websites to check for application guidelines, admissible costs, and documentation. For NHB subsidy, make sure you understand credit-linked subsidy requirements. (Agri Joy)
  4. Approach a bank for a term loan; get the loan sanction letter (often needed for subsidy).
  5. Build the greenhouse as per approved design / cost norms.
  6. After construction, get the structure verified by the horticulture department (or as required) to claim subsidy.

11. Challenges to Watch Out For

  • Technical Risk: Without good design, greenhouse may overheat or humidity may be too high.
  • Market Risk: Protected cultivation often produces more / off-season — but you need buyers.
  • Maintenance Cost: Replacing plastic covers, repairing structures.
  • Power / Water: Fan systems and irrigation demand reliable electricity and water.