Is Polyhouse farming profitable?
We have mentioned earlier about the challenges facing our Indian farmers, our farmers face innumerable challenges in their daily activities, challenges range from seed to marketing their produce. If you have never set foot on an agricultural land you will probably never know the farmers hardships.
Our farmers who tilt 1-2 acre are really struggling, you may buy a kilo of tomato or onion for 20-30 KG, Remember if a vegetable sells for Rs 40 in retail market in Chennai or Mumbai, the farmer who produced it will rarely get over Rs 5 per KG, and we are not exaggerating
Typically our farmers get only Rs 3-5 per KG, which reaches you after the 4th or 5th level, For example a farmer in a small village will sell his produce to the local middle man, this middle man will sell it to the next bigger person, and it will be at least 2-3 levels before it even reaches the wholesale market. Every layer adds 50-100%. Even though farmer sells it for Rs 5, you will never get it below Rs 40 even in the best case scenario.
In the earlier zamindari system, whole tracks of land were held by a single person; today typically most farmers do not own more than 2 hectares. It’s not possible for person owning 2Hectares to even rent a tractor for tilling let alone marketing his produce. Talk to any small farmer he will tell you tales of hardships.
Coming back to the title of this post Is Polyhouse farming profitable?
TFA agri initiatives operates multiple poly houses, we are a private limited company with experts helping us from multiple countries. We have scientists and professors in our payroll, TFA gets best all round expert suggestions and TFA is backed by a strong marketing expertise.
Assume our farmer produces 100KG of tomato in his best day; he has no choice except to sell it for whatever rate his local middle man demands --? Why
Our farmer simply cannot store his 100 KG for 1-2 weeks, if our farmer stores his produce in his farm, all his produce will rot fetching him Rs Zero. In other words our farmer has to sell his produce on the very day of produce. This is a curse of our farmers. TFA by its sheer size can absorb minor variations, we do not sell to local middle men, and instead TFA agri initiatives have marketing contracts to various big and small wholesalers.
TFA mostly exports the produce of our farms; this absorbs price variations to a very large extent.
Polyhouse farming is 100% profitable if done the right way, however constructing a Polyhouse can be expensive, building a commercial Polyhouse can run into few crores of rupees. Even though Polyhouse farming subsidies reduce the burden, Polyhouse construction is not for every farmer.
TFA can help you understand the intricacies involved in commercial Polyhouse Greenhouse Construction, various Polyhouse farming subsidies that are available etc.
Want to know how much TFA makes per acre ?? :)