Polyhouse Cost & Profit Per Acre in India (2026): NVPH, Net House & Fan-Pad Guide

The single biggest question every farmer asks before building a polyhouse is simple: how much will it cost, and how much will I actually earn? Most guides answer the first half and go quiet on the second. This one gives you India-specific numbers for 2026 — structure cost per acre, what the government subsidy actually pays, what you finance, what the EMI looks like, and crop-wise profit — so you can plan with real figures instead of guesswork.

Every figure on this page comes from the same engine as our free Polyhouse Investment Calculator, computed on a 1-acre basis (4,047 sq m). Plug in your own area, crop and structure and you will get these numbers for your project, plus a downloadable report.

Indicative figures. Actual project cost, subsidy eligibility and returns vary by state, site, specification, crop management and market price, and are not guaranteed.

What determines the cost of a polyhouse?

Polyhouse cost in India is driven by four things:

• Structure type — a naturally ventilated polyhouse costs roughly a third of a fully climate-controlled one. This is the single biggest lever.
• Area — cost scales with size, and India's subsidy schemes work on a per-square-metre basis. One acre is 4,047 sq m.
• Specification — GI steel grade, film quality, automation and irrigation move the number in both directions. Cheap steel and cheap film are the two most expensive savings a grower can make.
• Crop — the crop decides the internal systems you need: drip, fertigation, trellising, or a full hydroponic bench.

Polyhouse cost per acre in India (2026)

These are all-in project costs — structure, drip, civil work, accessories, transportation and file handling — not structure-only quotes. That distinction matters, because a structure-only figure can understate your real outlay by ₹10 lakh or more per acre.

For most first-time commercial growers, the Naturally Ventilated Polyhouse hits the sweet spot of cost, yield and reliability. Fan & Pad earns its premium only for high-value leafy crops grown year-round.

What is actually inside that project cost?

Quotes vary wildly because vendors include different things. Here is a full 1-acre NVPH broken into line items, so you can hold any quotation against it:

If a quotation is materially below this, ask which of these lines has been left out. Usually it is civil work, transportation or accessories — all of which you will pay for later anyway.

How to read a polyhouse quotation

Two quotes for “one acre NVPH” can differ by ₹15 lakh and both be honest — they are simply quoting different scopes. Before comparing prices, make every vendor answer the same questions:

• Is drip and fertigation included, or priced separately? On an NVPH this is part of the ₹55 lakh structure line above. If it is excluded, add it back before comparing.
• What steel, and what coating? Ask for hot-dip galvanised to IS standards, with the coating thickness stated in writing. Pre-galvanised tube is cheaper and does not last as long in Indian humidity.
• Which film, and what warranty? UV-stabilised greenhouse film should carry a stated life. Film is a consumable — budget replacement every 3–4 years from the start.
• Is civil work in scope? Foundation and apron fixing is ~₹2 lakh per acre. It is frequently excluded and then billed later.
• Who pays transportation? ~₹1.5 lakh per acre, and a common omission.
• Is subsidy documentation included? File handling is a real cost (~₹50,000) and a real workload. “We will help you with it” is not the same as owning the process.
• What happens after handover? Agronomy support through the first crop cycle is worth more than a small discount on the structure.

Hold each quotation against the line-item table above. Anything materially cheaper is almost always a narrower scope, not a better price.

Government subsidy: what you actually pay

This is the part most cost guides skip entirely, and it is the part that changes your decision. Protected cultivation is heavily supported in India, and the subsidy is not a vague percentage — it is calculated on published rate norms.

How the subsidy is calculated

Subsidy is worked out on an approved rate per square metre, not on what you actually spend. Broadly: an approved rate is applied to your area, certain fixed components are added, and a percentage — typically 50% — is released against it. Spending more than the approved norm does not increase your subsidy, which is why over-specifying a structure has a real cost.

NHB or NHM — they are not the same

Which scheme applies depends on the structure and your state:

• NHB (National Horticulture Board) — applies to polyhouse and climate-controlled projects, credit-linked, capped at ₹1 crore per project.
• NHM (National Horticulture Mission) — the route for net house / shade net structures, administered through your state horticulture department.

Getting this wrong costs months. Our polyhouse subsidy guide covers eligibility and the application route in detail, and the NHB claim guide walks through the paperwork step by step.

Indicative subsidy and net cost, by structure

Note what happens at the top end: the subsidy is capped, so the higher the project cost, the smaller the proportion it covers. On a net house the subsidy carries roughly half the project. On a Fan & Pad it carries about a fifth.

Subsidy is released after construction and inspection, against approved norms. Amounts and percentages vary by state and scheme year.

Financing: what you put in, what you borrow

Almost no commercial polyhouse is paid for in cash, and the financing terms are unusually favourable — another thing generic guides leave out.

• Promoter margin — you contribute about 20% of the net cost.
• Term loan — the remaining 80%, typically over up to 7 years.
• Agriculture Infrastructure Fund (AIF) — loans up to ₹2 crore carry a 3% interest subvention. On a ~9% base rate, that brings the effective rate to roughly 6%.

On a 1-acre NVPH that works out as:

So the realistic question is not “can I find ₹65 lakh?” — it is “can I fund roughly ₹7.4 lakh and service an EMI of about ₹43,000?” For a net house the EMI is around ₹15,245 a month. The AIF loan guide covers eligibility and the application route.

Year one: funding the subsidy gap

Here is the practical trap that catches first-time growers. Subsidy is reimbursed after construction and inspection — not paid upfront. That means in year one you must fund the full project cost and wait for the subsidy to come back.

On a 1-acre NVPH the sequence is:

• You fund the full ₹65.75 lakh project — from your own contribution plus the sanctioned term loan.
• The structure is built and inspected.
• ₹28.87 lakh of subsidy is released against approved norms, and is typically adjusted against the loan.
• Only then does your effective outlay settle at the ₹36.87 lakh net figure everyone quotes.

Two things follow. First, your bank sanction has to cover the gross project cost, not the net — arrange the facility on that basis. Second, the first crop cycle needs working capital of its own for planting material, nutrients and labour, on top of the structure. Plan that money before you break ground, not after.

This is also why subsidy paperwork timing matters so much: every month of delay in inspection and release is a month of interest on the full amount.

Polyhouse profit per acre — crop by crop

This is where protected cultivation earns its reputation. Figures below are per acre per year, after operating costs (planting material, nutrients, labour, energy, packaging), before loan repayment.

Naturally Ventilated Polyhouse (NVPH)

Net House (Shade Net)

Lower ceiling, but the fastest payback of the three — because the net cost after subsidy is so much smaller.

Fan & Pad with NFT hydroponics

Lettuce grown year-round on an NFT bench: roughly ₹1.27 crore gross, ₹28.28 lakh operating cost and ₹99.20 lakh net income per acre per year, with payback around 1.5 years. The returns are the highest of any structure — but so is the ₹1.53 crore net outlay, and the crop demands reliable power, cold chain and a committed buyer. This is not a first project.

For a deeper crop-by-crop breakdown see our guide to the best polyhouse crops, or the detailed NVPH capsicum and cucumber ROI model.

What the operating cost actually covers

The operating cost lines above are not a single overhead — they are the annual running cost of the crop. For an NVPH they cover:

• Planting material — seed or saplings, replaced every cycle.
• Nutrients and crop protection — fertigation inputs across the season.
• Labour — daily crop work plus a trained supervisor, which is not a line to economise on.
• Electricity and water — pumping, fertigation and, in climate-controlled houses, cooling.
• Consumables — mulch, twine, clips, trays and traps.
• Periodic film replacement — amortised across the years between changes.
• Packaging and grading — particularly significant for export-grade or retail-grade produce.

How that total varies by crop and structure:

Notice that higher operating cost is not a bad sign in itself — Dutch rose costs the most to run in an NVPH and still returns the most. What matters is the gap between revenue and running cost, not the running cost alone.

Is polyhouse income taxable?

Income from agricultural operations is exempt from income tax under Section 10(1) of the Income Tax Act, and produce grown in a polyhouse is agricultural income. In practice this materially improves what you keep compared with a non-farm business earning the same amount.

Exemption depends on the income genuinely qualifying as agricultural under the Act, and on how your operation is structured. Treat this as general information and confirm your own position with a qualified tax advisor before relying on it in a project plan.

Worked example: a 1-acre coloured-capsicum NVPH

Putting the whole picture together:

That last line is the one that decides whether a project is workable, and it is the line most cost guides never show you.

What can go wrong — and what it costs

Every figure above assumes the crop is managed properly and sold well. Being honest about the downside is more useful than another table of best-case returns:

• Price realisation is the biggest variable. Coloured capsicum at ₹70 instead of ₹100 turns ₹15.53 lakh net into roughly ₹8.3 lakh. Staggered planting and a committed buyer matter more than squeezing the last rupee out of the structure quote.
• Yield shortfall from poor agronomy. The structure is perhaps half the outcome. A first-time grower without agronomy support routinely lands 20–30% under benchmark yields in year one.
• Cheap film and steel. A film that fails in year two costs far more than the saving. Insist on hot-dip galvanised steel to IS standards and proven greenhouse film.
• Subsidy timing. Subsidy is released after construction and inspection. You must fund the full project first and wait — plan working capital for that gap.
• Water. Inadequate or saline water will undo an otherwise perfect project. Test before you build, not after.

Which structure should you actually build?

Planning beyond a single acre changes the economics again — see the 10-acre commercial polyhouse model and the 1-acre net house crop plan.

How to choose well (and avoid costly mistakes)

• Match structure to crop and climate. Do not over-build. NVPH suits most Indian conditions; go climate-controlled only for high-value leafy greens with a buyer already in place.
• Insist on quality. Hot-dip galvanised steel to IS standards and proven greenhouse films last far longer and protect your yield.
• Get agronomy support. The structure is half the story; crop guidance is what turns it into profit.
• Start the subsidy paperwork early. Approvals take time, and a partner who handles it end to end saves months.
• Check the quote line by line against the breakdown above before you sign anything.

Frequently asked questions

What is the cost of a 1-acre polyhouse in India?
An all-in 1-acre NVPH is around ₹65.75 lakh including structure, drip, civil work, accessories and transportation. After NHB subsidy of roughly ₹28.87 lakh, your net cost is about ₹36.87 lakh. A net house is about ₹25.19 lakh (₹13.04 lakh net), and a Fan & Pad hydroponic greenhouse about ₹1.96 crore.

Is polyhouse farming profitable?
On the models above, a well-run 1-acre NVPH returns roughly ₹15–20 lakh net per year depending on crop, with payback of about 1.8–2.4 years on the post-subsidy cost. A net house returns roughly ₹10–12 lakh with payback nearer 1.1–1.3 years. Profitability depends heavily on price realisation and agronomy.

How much subsidy is available for a polyhouse?
Typically 50% against approved rate norms. On a 1-acre NVPH that is around ₹28.87 lakh under NHB, which caps at ₹1 crore per project. Net houses generally route through NHM instead.

Can I get a loan for a polyhouse?
Yes. Under the Agriculture Infrastructure Fund you can borrow up to ₹2 crore with a 3% interest subvention, bringing the effective rate to about 6%. You contribute roughly 20% as promoter margin; tenures run up to 7 years.

Which crop is most profitable in a polyhouse?
On these models Dutch rose gives the highest net income per acre (~₹20.35 lakh), followed by gerbera (~₹17.14 lakh), coloured capsicum (~₹15.53 lakh) and cucumber (~₹15.28 lakh). Flowers need assured market linkage, so vegetables are often the safer first crop.

How long does a polyhouse last?
A well-built structure lasts around 15–20 years. The UV-stabilised film is usually replaced every 3–4 years and insect net periodically, while the galvanised steel frame is built for the long term.

Work out your own numbers

Every figure on this page is computed for a standard 1-acre project. Yours will differ by state, site, specification and crop. The Polyhouse Investment Calculator runs all of the above — project cost, subsidy, net cost, loan, EMI, crop revenue, net income, ROI and payback — for your exact parameters in under two minutes, and gives you a detailed report to take to your bank.

Talk to Agrifirst

Agrifirst designs, builds and supports polyhouse and greenhouse projects across India — end to end, from structure to subsidy paperwork to agronomy. Explore commercial polyhouse farming, see how real growers did it in our success stories, or talk to our team for a free, no-obligation project estimate.

All figures are indicative estimates for planning purposes. Actual project cost, subsidy eligibility, loan terms, yield, price realisation and profit vary by state, scheme year, site, vendor quotation, bank approval, crop management and market conditions, and are not guaranteed. Please consult Agrifirst and your bank for a binding quotation, and a qualified tax advisor on tax treatment.