CityGreens Hydroponics - Blog #Hydroponics CostCityGreens Hydroponics - Blog #Hydroponics Costhttps://www.citygreens.ai/blogs/tag/hydroponics-costSat, 11 Apr 2026 09:04:45 +0530http://zoho.com/sites/<![CDATA[Why do Vertical Farms fail in India? Lack of Market.]]>https://www.citygreens.ai/blogs/post/vertical-farms-fail-indiaOne of the primary reasons for failure of Vertical Farms in India is lack of market due to high price of growing indoors.]]>
In the previous part of this series, we had discussed one of the significant reasons for failures of commercial Urban Farms in India. The fallacies considered there result in substantially high input costs. The higher input costs force the grower to price their produce at a significant premium to the market price. Higher pricing, in turn, leads to a lower uptake of sales and resultant failure of the farm. 
This brings us to our second observation for reason of failures of Vertical Farms in India, which is lack of Market. Of all the inquiries we receive from Commercial Farming aspirants, hardly, few would come to us after identifying a potential market for the crops they would want to grow. An approximate representation of the basic thought process (that we have observed) works in the following fashion. 

Step 1

decide on setting up a Hydroponic / Vertical Farm 

Step 2

decide on the crop-technology combination for the farm (primarily based on googling or hearsay) 

Step 3

make the BIG investment - set up the physical farm infrastructure 

Step 4

try to figure out how to get the farm to work - the learning curve for crop technology combination

Step 5

try to find a market for the crops

This sequence of steps is sub-optimal.

Even after one traverses from Step 1 through 4 successfully, the farm may still fail when one realizes that the premium, they were assuming the market will be willing to pay for their produce, does not exist. Often, by the time they reach to Step 5, they have made their cost structure so high that to maintain profitability, the only price they can charge is one that will ensure that they are priced out of the market.


To elaborate on the above decision-making cycle, one small case study of an Urban Farmer who had reached out to us with a SoS call.


Background: Apparently, the grower had set-up the farm based on an excel sheet calculation received from the vendor that assumed an ideal four-week growing cycle and offered a buyback price per head of lettuce as long as it was above 'x' grams. The buyback commitment was for one year and the break-even period was depicted as nine months. 



Problem Statement: It was almost three months since the farm was set-up however the farmer's revenue was 0. 

Reason - he was not able to achieve even 50% of the weight (of lettuce) required for availing the buyback offer. 

Root Cause Analysis: We visited the setup and narrowed down the problem at multiple levels:- 

1. Faulty RO unit giving output water with high pH (7.6 to be precise) 
2. Lack of awareness about pH management at grower's end 
3. Lack of knowledge about the nutritional needs of the crop in question 
4. A poly house set-up without temperature control 

Learnings: If you look at this case, it typically followed the steps outlined in the above sequence. When the grower reached out to us, he was stuck at Step 4 for almost three months. Sure enough, the vendor did not help as his responsibility got over once the farm was set. From a RoI(Returns on Investment) perspective, this meant that the three months out of the twelve-month buy-back period got over with nil revenue. Further, the excel sheet assumed consistent production around the year. Given that it was a poly house setup without temperature control, the grower will not be able to grow lettuce for more than 4-5 months in a year at max. Since the buyback was only for lettuce and set-up cost almost twice of what it should be (because of buy-back and 9 month break-even calculations in excel, the gullible grower did not mind paying the premium), the vendor will make a handsome profit even if he discards all the lettuce he ends up buying during the buy-back period. 

Step 1

decide on setting up a Hydroponic / Vertical Farm 

Step 2

understand the basics of Urban Farming and different crop-technology combinations. select 2-3 options 

Step 3

do a market survey, to try to establish a market for the produce

Step 4

decide on the crop-technology combination for the farm based on learnings gained in Step 2 and 3

Step 5

make the BIG investment - set up the physical farm infrastructure

Understand your market, before you set-up your farm.

Of these steps, the Step 3 - the failure in establishing a market before one sets up the farm is one mistake we are discussing today. If one can determine the market upfront and arrive at the price they can command, all the calculations can flow backward from there. This process can help growers be prudent on their cost structure depending upon the premium they hope to be able to command from the market. Hope this blog throws some insights and help you in your decision-making process. 



Happy Growing!
]]>Wed, 09 Jan 2019 21:20:27 +0530<![CDATA[Why do Vertical Farms fail in India? Stop copying the west.]]>https://www.citygreens.ai/blogs/post/vertical-farms-fail-india-stop-copying-westone reason of failure of vertical farms is growing exotic produce that does not suit the local palate]]>

During our journey in CityGreens, we have met many Consultants, Competitors, Collaborators, Govt. Dignitaries, Investors, Entrepreneurs, Aspirants, and so forth. These encounters have helped us develop deep insights into the industry. It will not be an understatement to say that the Vertical Farming industry in India is still in its infancy. The way this industry shapes up will depend upon a lot of factors, primarily being the establishment of a few successful commercial models at a scale that can help the fence-sitters to make an informed leap of faith.


In this series starting today, we will share with you a few insights (specific to Indian context) that we have gained over time. These insights are based on our understanding and the inferences we have drawn. These may not be directly applicable in your specific set of circumstances. However, we do hope that these will help you think more in-depth about the issues that you may face in your journey of Urban Farming.


The first insight that we will cover today is the one that we have observed most commonly and has the potential to inflict the maximum damage on the success potential of a farm.


Aping the West


Agriculture in India, per se, is way behind the western world when it comes to using technological advancements. One such technology that was promoted and supported by various Governments and vehemently abused by some unscrupulous Farmers (to misuse the subsidy system and make undue financial gains) was that of Greenhouse.


The reason for failure - aping the west. If you consider polyhouse or Greenhouse technologies, their roots are in Europe. The primary reason these were created was to protect the crops from cold weather. The climate/weather profile in India is very different. Blindly copying the technology to tropical parts of the country resulted in disastrous consequences in many states. (the technology does work well in the colder climatic regions of the country)


When it comes to Vertical Farming, one can observe a similar phenomenon is taking place. 


Most of the vertical farming aspirants we talked to had two things in common

They wanted to use LEDs 

They wanted to grow Lettuce

The reason? Because that is what they have seen everyone doing the world over. Let us evaluate both of these in the Indian context, one by one.


1. Use of LEDs: Take a step back and look at the problem that LEDs solve; they help you grow indoors. And why do you want to grow indoors?

a. the land cost is too high. 

b. The temperature outdoors is not conducive to growth (its either sub-freezing or too hot). 

c. one wants to grow in multiple vertical layers (say 10 - 15 levels at least).

In the Indian context, the first two will not hold. What LEDs will result in, in such a scenario, will be a manifold increase in the Cap-Ex and the Op-Ex, thus pushing away the break-even period further, or increasing the input cost so much that the output product becomes uncompetitive in the market. The third reason may still be the right reason for someone to set-up an LED-based farm in India. But it is cap-ex heavy and should be pursued if one is willing to wait for a long gestation period to break-even.


2. Growing Lettuce: Surprisingly, we rarely come across any Urban Farming aspirant who does not want to grow Lettuce. The question we like to ask is, after all, how much lettuce can Indian's consume? People in the west grow lettuce because they eat lettuce day in and day out (as a part of salads or sandwiches which form their staple diet). Indian's don't.


If one observes, one will see that the palate preferences that get developed over time, do so based on the demographic dividends. In semi-arid and desert regions of western India, when our ancestors had to travel long distances, they needed the food that can stay edible for long periods in the hot environment. And you see a lot of gram flour-based snacks in those cuisines (think Gujarati / Rajasthani cuisines). Similarly, in the economically lesser developed eastern parts of the country, potato served as one of the cheapest sources of quick energy, and you can see that influence even today (think Bengali Chicken biryani) in most of the eastern cuisines. Similarly, when it comes to greens, the Indian palate prefers the one that can be grown in tropical regions. Lettuce is definitely not the one.

Unless India transforms into a salad eating nation or lettuce becomes a part of mainstream Indian cuisines (think lettuce paneer instead of Palak Paneer), the market for lettuce will remain limited. In such a scenario, if all the vertical farms start producing lettuce, it will flood the market and lead to price erosion.


To grow lettuce or other exotics not native to Indian weather, one needs to make a significant investment in temperature control infrastructure, which makes the cost excessive. You can save on that investments and keep both your Cap-Ex as well as Op-Ex considerably lower if you grow the Indian greens like spinach. (You can still grow lettuce in the winter season and command market price). Having said that, In case you do have an assured market for the supply of lettuce that comes out of your farm (through B2B rate contracts or otherwise), please go ahead and set-up a lettuce factory. But if you are doing it just based on the assumption that you will find the market later, better go small and test the hypothesis first.


This brings us to our second observation, which we will cover in the next part of this series. Till then,


Happy Growing!

]]>Mon, 10 Dec 2018 13:52:55 +0530<![CDATA[From seed to feed in seven days. The cost dynamics of setting up a Hydroponic fodder unit.]]>https://www.citygreens.ai/blogs/post/cost-dynamics-hydroponic-fodder-unitProfitability analysis of setting up and running a Hydroponic Fodder Unit]]>

In the first part of this series, we had established a case for setting up of small-scale Hydroponic Fodder units to meet the vast demand-supply gap for green fodder. In today’s article, we will share with you the results of our small experiment to grow fodder using Hydroponics and indicative profitability analysis for such a unit.

Our Experiment with growing fodder

We wanted to do a quick set-up and so used the handy materials. The primary objective of the research was to establish the yield that one could get per kg of fodder grains in an average case scenario (as against a laboratory set-up with the controlled environment) with minimal use of automation.


We used wheat grains for our experiment, as they were easiest to find. As per data available in the public domain, each Kg should give us up to 6 kg of green fodder for wheat.

The following images will help you understand how our experiment went.
Caption Goes Here

Day 4

Caption Goes Here

Day 5

Caption Goes Here

Day 6

Day 7

On Day 7, we stopped the experiment. The yield we received was approx. 3.75 kg of green fodder for each kg of grains (against an expected yield of 6 kg).


As we introspected, many factors could have led to a lower yield. Some of these are:-

    • Sprouting of seeds directly in the tray - instead of wrapping the seeds in cheesecloth and letting them germinate (the way one would do for lentils), we allowed the seeds to sprout directly in the fodder tray. This process may have reduced the growth rate and increased the harvest cycle (if we harvested on the 8th or 9th day, yield could be nearer to the benchmark).
    • Lack of aeration - as we did a quick and dirty set-up, one mistake we did was taking the trays without perforations. Perforation in the base allows for ventilation and drainage of excess water, which did not happen in our experiment.
    • Irregular watering cycle - we watered the tray manually, which means that the periodicity and measure of watering were not precise. Also, there were long periods (during the night) of no watering.


Looking at the above data, we feel that it will not be difficult to achieve the yield of at least 5 kg (if not 6) if one does the process right. Also, since the learning curve is pretty steep (every seven days you get one new harvest), one can quickly learn from their mistakes and move to the optimal yield.


For now, let us look at the cost dynamics or profitability of setting up a small-scale Hydroponic Fodder unit.


Profitability analysis of a small-scale Hydroponic Fodder unit

Any hydroponic fodder unit will consist of the following three essential components:-

    • The fodder trays in which fodder will be grown.
    • The frames or structure that will hold the fodder trays.
    • The watering and plumbing system.


For the sake of calculations, we will consider a 2,500 sq. Ft. Unit (land area) in a 50x50 configuration. Depending upon the site layout and no. of layers, the final pricing will vary. However, the calculations below will give you a ballpark estimate of cost dynamics.


Frames

We are considering two-sided structures (that farmer can access from both sides) made of rust-proof metal. Each frame will have five vertical layers and can accommodate 120 trays. In the given area, we can fit 14 such frames at a total cost of approx. INR 3.15 Lakhs.

Fodder Trays

We are considering a tray size of 2 ft x 1.5 ft so that one individual can easily handle the weight (of fully grown fodder). At approx. INR 250 for each tray, the trays should cost approx. 4.20 Lakhs.

Water Tank & Plumbing Connections

This will vary based on layout, but we will take a ballpark figure of 0.50 Lakhs for our calculations.

Thus, the above three components for a 2,500 sq. Ft. Hydroponic Fodder unit will cost approx. 7.85 Lakhs in Capital Expenditure. This price does not include the cost of land and outer structure (room/shed/polyhouse, etc.).

On the operational side, the three crucial cost components would be:-

    • Seeds
    • Electricity
    • Water


The monthly cost towards these for our set-up (assuming seed cost of 10 Rs per Kg and going rates for water and electricity) would be approx. INR 0.67 Lakhs.


Assuming a yield of 5kg of green fodder for each kg of dry grain and selling price of INR 5 per kg, the monthly income would be INR 1.26 Lakhs, thus giving a gross margin of INR 0.59 Lakhs per month.


Please note that this does not cover costs towards labor, selling and marketing, logistics towards taking the produce to the market, and other operational expenses. These costs will vary from case to case and project to project.


The established capacity will give on an average 850 kg of green fodder per day, which should be sufficient to meet the needs of 45 - 50 cows (depending upon the breed).

We believe that there does exist a case for setting up of small-scale hydroponic fodder units for a collective of a few farmers. A collective farm will ensure savings on labor and logistics cost leading to profitability for such small groups.

Word of Caution

A hydroponic fodder unit is prone to infestation by some fungus (due to high humidity levels), and one would need to ensure proper drainage and sterilization to protect against the same.


In our experiment, since the conditions were ripe for fungus growth, the same did affect our production. The following images will show you a close-up of fungus growth that we encountered on Day 7 and Day 8.

Day 7

Day 8

Update - June 2018

The learnings from this home experiment excited us to repeat the experiment in a proper set-up in our Vertical Farming Research Centre in Ahmedabad. 
​
​Here are what the results look like. We were pleased to get a healthy crop of fodder with expected yields.

Fodder Grown by our Trainee

Further, what excited us more was the results obtained by one of the attendees from the Commercial Hydroponic training courses that we run on our research farm. 


Take a look. Not bad for a first attempt. :)

Happy Farming!

]]>Wed, 21 Nov 2018 10:12:54 +0530<![CDATA[Important parameters to consider while setting up a Commercial hydroponic system.]]>https://www.citygreens.ai/blogs/post/important-parameters-setting-commercial-hydroponicSome important parameters one should consider before venturing into a commercial hydroponic set-up]]>

In our journey so far, we keep meeting a lot of new hydroponics enthusiasts - individuals who are all out excited with Hydroponic and the commercial opportunity and avenues it opens. It seems apt to share a few considerations one should be aware of while venturing into Commercial Hydroponics. 

    

People are fascinated by this new and trending technique of growing plants. Looking at a few YouTube videos, and media snippets, they perceive this to be an easy way to make money - less labor, less time, and (through the use of polyhouse) more independence from season and climate. But here is a caution: Only Reading books/blogs and watching videos, without ever trying hydroponics at home (or in a controlled environment), might not be sufficient to ensure a commercially viable solution. 


Here are some pointers that you should consider before setting up a hydroponic farm commercially.

Only Reading books/blogs and watching videos, without ever trying hydroponics at home (or in a controlled environment), might not be sufficient to ensure a commercially viable solution.

Here are some pointers that you should consider before setting up a hydroponic farm commercially.


1. Do it yourself before going commercial / do not rely entirely on others.

It is essential to know the basics yourself before outsourcing a project of extensive scale and impact. Once you develop an understanding of the basics, it will be easier for you to grasp the variances that would come along while setting up a commercial hydroponic set-up. 


Fundamentals you should be hands-on with:

    1. What is hydroponics, and how is it done?

    2. What nutrients does the plant need to grow?

    3. What are the environmental factors that control growth and yields?

    More commonly, people ask consultants to set up a farm for them without knowing anything about the day to day working. This could prove to be a bane. The consultants will set-up the farm and guide you and support you through your journey, but YOU have to take care of your farm. It would help if you did your research and study. But it would be best if you experienced it first hand. You don't need to know everything in-depth. Just experiencing the concepts first hand will be of great value and help. 


    The image shows a DIY set-up done by one of the attendees who had joined our training for Commercial Hydroponic Farming. Go ahead, get your hands dirty, and gain a hands-on!


    2. Socialize with the community.

    You are not alone. Many are on this journey with you. Connect with your peers - understand their biggest grievances - learn their combat strategies. If possible, visit other Hydroponic commercial set-ups. These will help you prepare better to face the problems that may arise in the future. As you grow in your experience, remember to support others. Remember, we all grow together, or nobody grows. 


    3. What should be grown?

    Climate

    Understand the weather patterns of the place where you want to set-up the farm.

    Crops

    You can go for short-height, small cycle crops. They will make money faster, but perishability will be less. Or you can go for large fruit and vegetable bearing plants. The produce will have higher perishability but will take longer to grow.

    Consumer Need and Demand

    Do market research if required. Grow what people usually eat in your market region.

    Single Crop or Multi Crop

    Single, high-consumption crop works better in smaller set-ups. In large set-ups, you can grow multiple crops of different varieties.




    Some factors you should consider before choosing your crops

    Okay. So now you've tried this at home a couple of times. You've visited a few commercial set-ups. You've done your research. You've got the hands-on experience and confidence. The next thing which one should decide is what to grow. Proper selection will ensure adequate yield. No matter what state the economy will be in, there will always be demand for safe, fresh, and healthy food.

    4. Do a cost-benefit analysis.

    The next step before setting up a hydroponic unit would be to carry out a cost-benefit analysis of the project. It is wise to be well versed and aware of the range of expenses that will take place while setting up the farm and for its maintenance, once it is set. In an ideal condition, it would benefit to set-up the farm near an already available marketplace where you can sell your produce at a satisfactory rate. While selling the produce, one should choose a pricing strategy based on the value of the product. Your pricing should match the quality of the product so that you can manage to get a margin of profit and achieve a high level of customer satisfaction as well. 


    5. Choose a structure that provides the right environment for your set-up.

    It is vital to understand that there are many factors that are intrinsic to each locale. It is essential to study the local conditions before setting up the polyhouse structure. Blind copying may not work. Polyhouses helps to maintain climatic factors like temperature, humidity, etc. as well as protect the crop from harsh wind, rain, etc. Polyhouse also helps in reducing insects and pests that affect the yield. At the time of the set-up, it would be beneficial to consider the following:


      • The area should be well-drained. Waterlogging can harm the plants, especially in areas of heavy rainfall and flood.
      • The polyhouse should be far from industrial units so that the plants do not get polluted.
      • The design, dimensions, and orientation of the polyhouse should be thought through.
      • The material used in making a polyhouse must be of good quality to withstand the effects of changing environment.
      • The inner structure is also important - proper watering system, the spacing in the house, allowing sufficient light and air, maintaining humidity, etc. are just a few of many things that you should consider in your design.

    6. Workforce training.

    Although hydroponics is not a labor-intensive system; human involvement will still be needed to keep checks on crop growth. Providing adequate nutritional requirements, on time pruning, harvesting, making the system ready for the next cycle, etc. all require labor. Adequate training of the workforce on hydroponic techniques is crucial. 


    Do get started. Enjoy the experience. 


    Happy Growing!    

    ]]>    Wed, 22 Aug 2018 23:34:07 +0530    <![CDATA[Cost dynamics of maintaining a rooftop Kitchen Garden]]>https://www.citygreens.ai/blogs/post/cost-terrace-kitchen-gardenIf done right, one can not only grow fresh and healthy produce in a rooftop kitchen garden, but also make some profits too.]]>

    In the first of this two-part series on setting up and maintaining a kitchen garden, we covered the costs incurred in setting up a kitchen garden. In this article, we will analyze the cost dynamics of maintaining the kitchen garden and also evaluate the profitability potential of one.


    To calculate the profitability potential, we need to understand the revenue and cost dynamics of such a farm. To evaluate either of these figures, the first step is to get a fix on the number and variety of plants inside the terrace farm.


    No. of Growing Spots

    In our previous post, we had covered the concept of growing area vs. floor area. You would remember that for this specific exercise, we had arrived at a growing area of 98% (approx. 295 Sq. Ft). 


    In this specific growing area, we can choose to plant a fixed number of crops depending upon the spacing requirements of the particular plant variety. Thus what we need to arrive at is the total number of growing spots for the plants within a given growing area.

    Crop Variety

    As the purpose of this exercise is to determine the commercial sustainability of a rooftop kitchen garden maintained by a homemaker or a retired elderly at home, we will consider a conservative scenario. 
    Instead of painting a rosy picture by using exotic crops like lettuce in these calculations, we will consider a plant with much lesser revenue potential but much higher sustainability potential for a rooftop garden. The crop we will stick with is spinach. It is widely used in Indian cuisines (and so will have a higher demand and will be easier to sell and use in a common India household kitchen).

    Revenue Estimation

    Potential Yield per Crop Cycle:

    In the set-up we have created, the ideal spacing for spinach gives us three growing spaces per sq. Ft. of growing area. Thus, the total number of growing spaces for our scenario is 885 (=295x3). Also, each growing space gave an average yield of approx 150 grams. Thus, the potential yield one would get out of 300 sq. Ft. Kitchen garden would be 133 kgs in one crop cycle.


    Yield Spacing: 

    A point to note is that all of this yield will not mature at the same time. Since we are using Vertical rows (to get more growing area), this results in a lesser amount of sunlight being available to the lower rows. So, the plants in the lower racks take longer to be harvest-ready than the plants in the top shelf. This difference in maturity rate is good in a way as it helps in staggering the production and maintaining the demand-supply balance. In our case, the split of 285 sq. Ft of the growing area is 145 sq. Ft in the top layer, and 70 sq. Ft each in the middle and lower racks.


    Monthly Yield: 

    Depending upon the nutrition, temperature, weather, and factors like pH, etc. a particular crop's maturity time may vary and can be controlled to an extent. In the experimental set-up proposed here, we will consider the average maturity times of 4, 5, and 6 weeks respectively, for the three levels of growing areas. Considering a month to be four weeks (for simplicity in calculations), 100% of the plants in the top rack, 80% in the middle frame, and 67% in the bottom one will mature every month. This gives us a monthly yield of approx 111 kg per month.


    Revenue Potential: 

    Since the produce grown in your kitchen garden will be super fresh, crisp, soil-free, and free of pesticides, it should command a premium over the one sold by your neighborhood vegetable vendor. Still, without being too ambitious, we will take a price of 25/- per bunch (of 200 gm).

    At this price, the monthly revenue potential is at 13,875/-

    Cost Estimation

    While calculating the operational costs (or cost of growing the crops), we will consider Deep Water Culture (DWC) as the growing technique. The largest cost one would incur in this would be the cost of nutrients. In our experiments, the nutrient needed per growing spot for one crop cycle of Spinach in DWC is 6 ml (of CityGreens Greens Combo Pack).             
    From the calculations done above, approx. 743 plants will mature each month. So the nutrient required each month would be approx. 4.5 Litres. At bulk pricing of 1,000 /- per litre, input cost for nutrients will be 4,500/-.


    Apart from nutrients, other operational costs would be towards seeds and grow plugs (assuming you will reuse net-pots and DWC lids), water, electricity (for air pump), and other sundry items. The cost of seeds and grow plugs will be around 1,500/- per month. Taking a ball-park buffer cost of 1,500/- additionally towards exigencies, repair, and maintenances, yield differences due to seasonal vagaries, pests, etc., the final input cost per month comes at 7,500/-

     The monthly input costs would be at 7,500/-

    Profitability Potential

    Using the above calculations, the profitability potential from such a venture stands at 6,375/- per month for a 300 sq. Ft set-up. This figure indicates a time-frame of approx. 14 to 15 months to recover the Investments.


    Points to Note: Couple of critical observations/suggestions

    1. Don't set-up a kitchen garden, if profit is the sole objective.


    You may argue that 6.3k is a tiny amount for one to go after this business. You will be right. Rooftops are small spaces. The relative capital cost will be high as the benefits of amortization will not kick in for small areas. Also, you would notice that the rental towards land is assumed zero here (the Kitchen Garden is set-up on empty/unused space). Again, the cost of labor is also kept at zero. If you add these two costs, the profit will be meagre.


    If you do plan to set-up a kitchen garden, go for the right reason. May it be to give healthy and fresh food to your family or to have a hobby or vocation or anything else that attracts you to the greens. Any profit that you generate out of it; take it as an added incentive that helps you to become self-reliant and self-dependent in financial matters (to a limited extent only).


    2. Don't extrapolate terrace garden figures to a commercial farm.


    The input costs and running costs in a Commercial farm will be much more and different from a rooftop garden. There would be added charges towards automation, rentals, and labor. Plus, there would be further costs towards marketing the produce, setting up a sales and distribution channel, etc. And after all of that, one may not be able to command a premium price if selling in bulk (to say a wholesaler who will need to add her margin before selling to a retailer, who will add her margin before selling to end-consumer). Take all of those costs into account while thinking of a commercial farm.

    A word of caution

    Playing devil's advocate, a Cap-Ex recovery tenure of 15 months, profitability potential of 255/- per sq. Ft. Per annum (or 1.11 Cr per annum per acre), isn't the scenario too good to set-up a commercial farm?


    Don't get into that reasoning. 


    Parting note

    Point No. 2 mentioned earlier is not to dissuade you, but to caution you against comparing apples to oranges.

    No doubt, if done in a correct manner and with the right intent, a commercial farm will make money. But the profits will be reasonable profits and not supernormal ones (that you may arrive at by using calculations used in this experiment). The break-even period would be three to four years.


    Always remember, if something sounds too good to be true, it probably is.

    Happy Farming!

    ]]>    Mon, 20 Aug 2018 13:16:07 +0530    <![CDATA[Cost dynamics of setting up a rooftop Kitchen Garden]]>https://www.citygreens.ai/blogs/post/cost-roof-top-kitchen-gardenThe overall set-up cots for a terrace / kitchen / rooftop garden will consist of three distinct components viz, cost of training, cost of outer structure, and cost of growing structure inside the garden.]]>
    We get frequent queries from our readers on the cost dynamics of setting up a Kitchen Garden on their terrace.  If put to good use, an empty terrace space can act as a source of engagement for the homemaker and elderly at home. It can also help in generating some additional income. Still, more than the income, the amount of confidence and feeling of self-worth it can create for the stay-at-home family member could be a reason enough to undertake such a pursuit. 

    With that intent in mind, we tried to determine the cost-dynamics of setting up and maintaining a terrace garden. Through this post, we will share the results of that exercise with you. If it can help some of you to decide and take the plunge, we will feel our efforts were well justified.

    CityGreens Urban Gardening Research Centre - 2017

    For the sake of this exercise, since we are also contemplating the potential of producing food for generating revenue, we will only consider a closed environment or a Mini-Greenhouse. 


    Also, to be as close to reality as possible, we will take data based on the 300 sq. Ft. Urban Gardening Research Centre that we have set-up on our terrace office in Bangalore.

    Set-up Cost

    For the sake of ease, we will divide the set-up cost into three distinct components, viz Cost of Expertise, Cost of Outer Structure, and Cost of Grow Structures inside the greenhouse. 
    Cost of Expertise

    This cost you will incur if you plan to get an experienced professional to design your kitchen garden, help you set it up, and train you on growing and maintaining the plants.

    Take time to understand how much grow area you will be getting in a fixed space. In our case, we achieved a grow area to floor area ration of 98%.

    Cost of Outer Structure

    The second cost head is towards the mini-Greenhouse. The price will vary based on the kind of set-up, the quality and quantity of inputs, and charges for the labor involved. It will be site-specific. For example, if you have a wall that can act as one of the sides or if Green House supports can be attached to a concrete railing/balcony, the cost will be lower. The expenditure will be maximum for a standalone greenhouse not connected to any sidewall or railings or to the roof itself (like the one we have set-up in our office). 

    Cost of Grow Structure

    This cost will also vary depending upon the material used and the layout planned. One can go for simple grow bags placed on the terrace, or a multitude of fancy pots, or a custom-designed waterproof structure. We went for a custom-designed multi-layered, eco-friendly, structure of wood-based waterproof frames. These are costlier than the alternatives, but the objectives we had with our Research center needed specific custom-build elements. In our case, including all the three factors above, it cost us 377 INR p.s.f. 

    Growing Area vs. Floor Area

    In order to optimize the available space better, one should understand how much productive (read growing) area one would be able to get based on the design selected.

    Let's say you place one pot (of 1 sq. feet) in every four sq. Feet of terrace area (to allow space for walking, and to give room to plants to spread out), the actual growing area will be 25% of the floor area. In terrace conditions, you should be able to get between 50% to 60% of the growing space (as measured against floor area). Anything above 60, you have done an excellent job. 

    How much should your terrace garden cost you?

    For a simple household case, the max it may cost to set-up the Terrace Garden would be Rs. 300 INR p.s.f. of floor area. That is the upper bound; you can work with a range of Rs. 250 to Rs. 300 p.s.f. as the cost for setting up of a terrace garden of approx. 300 sq. Ft. Thus, a 300 sq. Ft. terrace garden in a GreenHouse set-up will cost between Rs. 75,000, and Rs. 90,000 at current prices (in the Year 2018). 

    In the next part of this article, we will cover the cost of growing plants and the revenue-generating potential. 


    Happy Gardening!

    ]]>    Sun, 12 Aug 2018 04:02:27 +0530    <![CDATA[How much does it cost to set up a Hydroponic NFT Farm in 1 Acre in India]]>https://www.citygreens.ai/blogs/post/cost-hydroponic-nft-farm-indiaCost of setting up NFT structure in a Hydroponic Farm in one Acre]]>

    Update: May 2021


    The below blogpost was written in 2019. The orientation covered here is horizontal tables (H Frames) which fits in 10,584 meters of NFT channels in 1 Acre. With our continuous research and effort to increase productivity, we have now moved to flat bed system that allows for 13,152 meters of NFT channel in 1 Acre (approx. 25% improvement in productivity). 


    Further, though the concept and underlying principles remain the same, the pricing changes year on year. Do add an inflation of 8% to 10% year on year to arrive at current prices. We have updated the summary figures to reflect 2021 pricing below in green colour.


    We have updated the summary figures to also include the pricing for NFT flat-bed orientation. The changes are captured below in green colour.

    Original Post Follows

    Last week, we had covered the cost for setting up a polyhouse in an area of one Acre and arrived at a figure of between 28 L to 48 L (32L to 55L in 2021). This week, we will try to arrive at a ballpark figure for setting up the hydroponic grow structures. 


    Before we jump into the cost of the hydroponic structure, we should first decide on which particular hydroponic technology will best serve our purpose, i.e., grow excellent quality healthy crops. The crops that we would want to grow will eventually decide which growing structure we should use. 

    On a macro level, we can categorize the hydroponic vegetables into two baskets.

    Low Height Crops

    Fast turnover, low shelf-life, low height crops like lettuce, spinach, kale, coriander, rocket, parsley, etc.


    For leafy greens, the generally used choices are Nutrient Film Technique (NFT), Deep Water Culture (DWC), and Ebb & Flow (E&F).

    Tall Growing Crops

    Slow turnover, better shelf-life, tall-growing crops like tomatoes, cucumbers, bell peppers, other vine crops, etc.


    For vine crops, the preferred mode globally is the recirculating dutch bucket system. Other alternative is using grow bags with coco-peat or other inert media.

    For the scope of today's article, we will focus on the cost of setting up a Hydroponic NFT system in one acre. 

    NFT Channels

    NFT channels are long gullies made from food-grade plastic. The commercial variants come primarily in a rectangular shape. You may also come across many DIY home projects using the circular plumbing pipes. If you go for a circular tube, do ensure that you buy a food-grade CPVC pipe and not the regular plumbing pipes, used for drain fittings. 


    Since we are talking about setting up a farm in one acre, for the scope of this article, we will only cover commercial NFT channels. To determine the cost of NFT channels, we should first figure out the length of channels that we will need. Let us try to arrive at the same scientifically.

    NFT Channel length for one acre

    To get maximum yield, we will try to determine the maximum length of the NFT channel that we can practically fit into 1 Acre. 1 Acre is approximately 4,046 sq M, or 43,560 sq Feet. If we assume a perfect square site, that would be approx. 63 M each side. The entire space will not be usable for us. The boundary spacing, nutrient tanks, control unit, and structure walls, etc. will occupy some of this space. For simplicity's sake, let us assume a usable area of 3,600 sq M (60x60). Also, we will assume a horizontal bench-type layout of NFT channels in a single level instead of vertical or A-frame design to keep the calculations simple. 


    The first step in this exercise is to calculate how many benches of Horizontal NFT Frames can we fit in the given area. Think of these benches like a standard classroom desk. The classroom is of size 60x60 M, and each desk is a hydroponic NFT frame. The desks are arranged into different rows and columns within the classroom. We will now try to calculate the number of distinct rows and columns that can fit within our 60x60 M classroom. However, before we can do that, we need to determine the size of the desk and the spacing required between different rows and columns.

    Frame size for Horizontal NFT layout

    To be able to tend to the plants, we should restrict the single bench width to approx. 4 to 5 feet so that an average human being can tend to the plants from either side. Also, The inter-bench spacing should allow sufficient walking/working space for a couple of workers/visitors between the two hydroponic NFT frames. As such, let us keep the spacing between two benches to be two feet. For the length part, we will go with the maximum length in which the channels come, which is 6 m. Using the above numbers, we can fit 252 NFT frames in a one-acre size.

    NFT Channel length required for 1 Acre Hydroponic Farm

    The next step is to figure out the number of channels in each frame. While deciding on this parameter, it is vital to understand the spacing needs and spread for the crop you plan to grow. Each plant should get sufficient light and space to produce foliage. This number would vary from crop to crop. 


    Additionally, one would also need to take into account the size of the NFT channel and the spacing across both lateral as well as longitudinal dimension. Covering science behind this is beyond the scope of this article. Let us work with an average case number of 7 channels per bench (ideal case in specific crops may be + - 1). For 252 frames, the total number of channels we will use will be 1,764. At each channel length of  6 m, the total length of NFT channels will come at 10,584 meters.

    For flat-bed orientation for a mixed farm, this figure would be13,152 meters.

    NFT Channels cost for 1 Acre

    At these volumes, the NFT channels may cost anywhere between 200₹ to 320₹ per meter at the going rates in 2019. The covered channels will cost less while the two-part channels (with openable top lid and separate base channel) will cost more. Further, the price will vary based on the grade of material used, thickness, whether it is lead-free or not, etc. 

    Closed lid or fixed NFT channels can cost around 23 L for 1 Acre (35L for Flat-bed)
    2 part or open lid NFT channels can cost around 32 L for 1 Acre (48L for Flat-bed)

    In addition to the cost of NFT channels, there will be additional costs towards End-caps for these channels, plumbing connections, the stand or frame to support NFT channels, labor, and service charges of the experts that you will engage in the installation, etc. These all components may look small but when added in its entirety, can easily set you back by another 15L (30L at 2021 pricing - 25% more connections due to higher farm capacity + irrigation system (tanks and motors) included).

    Thus, overall, an NFT channel based Hydroponic set-up in 1 Acre can cost approx. 38 L to 46 L (65L to 78L for flat-bed) for the NFT structure set-up. 

    Based on the information that we have considered so far, a one acre Hydroponic NFT farm can cost between 66 L and 94 L (97L and 133L) for setting up the polyhouse and the NFT structure. Now we need to consider the third major head of cost which is towards technology, automation, and making this farm work. We will cover this component in one of the future articles. Till then


    HappyFarming!

    ]]>    Sat, 14 Jul 2018 05:05:59 +0530    <![CDATA[Setting up a DWC Hydroponics System in 1 Acre in India - The Cost Dynamics]]>https://www.citygreens.ai/blogs/post/cost-hydroponic-nft-farm-india1Cost of setting up NFT structure in a Hydroponic Farm in one Acre]]>

    Update: May 2021


    The below blogpost was written in 2019. Though the concept and underlying principles remain the same, the pricing changes year on year. Do add an inflation of 8% to 10% year on year to arrive at current prices. We have updated the summary figures to reflect 2021 pricing below in green colour.

    Today's topic is a little complex, as when it comes to DWC Hydroponics, the cost dynamics can vary a lot depending upon the way one chooses to implement this technology.


    Unlike an NFT, or Dutch Buckets, or Vertical tower system, which is pretty consistent in terms of equipment requirements and costs, a DWC system, offers a multitude of options when it comes to the choice of structural design and layout. These different options can lead to a wide variation in costs.


    This article assumes that the reader is aware of the basic concepts of Deep Water Culture or DWC. Similar cost dynamics will apply for 'Kratky' method of Hydroponics (barring the cost towards Air Pumps).


    Choice of DWC Structure

    The following is not a scientific classification, but for a layman's understanding, we will group the multitude of DWC structures into two classes.

    Floating Lid System

      in this kind of system, the bottom tray stores the nutrient solution. The top cover floats over the nutrient solution. It is the top lid that supports the crops. The roots of the plants remain immersed in the Nutrient Solution at all times.


      The adjoining image shows Kale growing in a floating lid DWC system in CityGreens Research Centre in Ahmedabad.

    Fixed Lid System

      in this system, the cover remains fixed at the top of the tray (instead of floating over the nutrient solution). As the nutrient level decreases in the tray, the roots grow downwards to be able to continue to draw the nutrients. This design will leave the upper part of the roots in the air (using which plant can draw Oxygen) and the lower part in water (using which plant can draw water and nutrients).


      Adjoining image shows Spinach growing in a fixed lid DWC system in CityGreens Research Centre in Bangalore.

    Grow area inside 1 Acre

    The above two structures are ok for a small or hobby set-up. When setting up a 1 Acre farm, instead of buying trays and trying to operate them in isolation, one can go for creating connected DWC channels on the ground. 


    Let us now try to identify the amount of space that can be utilized for DWC set-up in 1 Acre. For this calculation, we will go back to last week's article about setting up an NFT Hydroponics farm in 1 Acre. From that article, we will work with 29 growing columns of width 1 m each. However, unlike in NFT, we are not restricted by the standard size of NFT channels. Thus, instead of 48 m of row length, we can use, let us say, 56 meters (leaving 2 m on either end).


    This design gives us an approximate growing area of 1,624 sq M (=29x56). One can increase the growing area by reducing the generous spacing between consecutive columns (which we have kept at 1m to enable a couple of persons to be able to walk through / work together). However, to maintain consistency in this series, we will work with an inter-column spacing of 1 m.

    DWC Structure cost for 1 Acre

    The image shows a representation of how DWC channels can look like if built in concrete.

    Creating such a structure may cost between ₹1,400 to ₹1,600 per sq M at the going rates. As such, creating the DWC channels in one acre may require between 23 L to 26 L (28L to 32L in 2021).


    Further, there will be costs towards air pumps, plumbing, stirrers, sensors, and other equipment to ensure the optimal distribution of nutrients in the DWC channels. To maintain consistency, let us keep this number at 15 L (25L in 2021), like in the NFT example (including the cost of servicing agency).


    Thus, overall a DWC Hydroponic set-up in 1 Acre can cost approx. 40 L (53L to 57L in 2021) for the DWC structure set-up.

    As clarified in last week's cost, PN that:-

      1. It does not include cost towards the outer structure that we had covered here.
      2. It does not include the cost towards automation and the nutrient supply system, which we will cover at a later date.
      3. The above is an average case scenario; these will differ from cases to case and site to site.

    Happy Farming!
    ]]>    Sat, 14 Jul 2018 05:05:59 +0530    <![CDATA[How much does a 1 Acre Hydroponic Farm cost in India?]]>https://www.citygreens.ai/blogs/post/1-acre-hydroponic-farm-cost-indiaThe major cost heads of a Hydroponic farm includes Poly-house, Hydroponic growing technology, and automation.]]>

    Update: May 2021


    The below blogpost was written in 2019. Though the concept and underlying principles remain the same, the pricing changes year on year. Do add an inflation of 8% to 10% year on year to arrive at current prices. We have updated the summary figures to reflect 2021 pricing below in green colour.

    Original Post Follows
    Let us start with a cross-question. 


    How much does a car cost in India?
    The answer is, there is no correct answer. It depends.


    It depends upon a multitude of factors like who builds it, the fuel it runs on, the quality of spare parts that goes into it, the power it packs under the hood, etc. There can be price differentials of more than 3x to 5x across models providing similar utility. Any of these cars can take you from point A to B, but at varying price points.


    Using the car's analogy, one can relate as to why the cost of setting up a hydroponic farm of a given scale (the yield capacity), and size (the area occupied by the farm) is not constant. 


    In the remainder of this post, we will try to help you understand the critical decision points/choices that go into setting up a Hydroponic farm. Post that, we will also see how these choices can impact the overall set-up cost for the hydroponic farm. 

    When setting up a Hydroponic commercial farm, the various cost components can be grouped under three major heads. These are the external housing, the hydroponic growing technology, and the automation. 

    External Housing
    Hydroponic Technology
    Automation
    External Housing

    For example, polyhouse, greenhouse, glasshouse, shade net house, etc.

    Hydroponic Technology

    For example, Nutrient Film Technique, Deep Water Culture, Ebb & Flow, Dutch Buckets, etc. 

    Automation

    For example setting automatic controls for Temperature, Humidity, Irrigation, pH, EC, etc. 

    The External Housing

    Before one even begins to set up the technology inside, the initial cost that a commercial grower will encounter will be towards setting up the external housing. Two critical design choices can impact the cost of the external housing or the outer structure. These are:-

    Choice of Design

    flat roof shade net

    Flat Roof

    The roof portion in a flat roof structure is parallel to the ground, in one horizontal plane. Since the roof, in this case, is flat, any falling debris, or rain, or snow can get accumulated on the roof and may damage the structure. As such, these structures are built using a permeable covering of poly-fiber or nylon-based sheets that allows rainwater and wind to pass through the cover. 


    Flat roof net-houses cost less but provide limited utility. They are suitable for areas that receive deficient rainfall, no hailstorm, and wind speeds of less than 100 km/ph.


    Within the flat roof structure, one can go for pipe purlin (roof made out of GI pipes, just like the sides) or Cable purlin (roof made out of GI cables, sides out of GI pipes).
    round roof polyhouse

    Round/Dome Shaped

    This structure has a curved top design which helps in air circulation, collection of rainwater, and also sliding of debris or hail. This structure is costlier than the flat roof structure. It is usually covered using polycarbonate or other such non-permeable sheets.

    Choice of Covering Material

    shade net

    Shade Net

    Amongst different options for outer covering, the shade net is the cheapest one. As the name suggests, it is primarily used to provide shade to the plants to protect them from the harsh sun. Shade net comes in different qualities, colors, and shade factors like 25%, 50%, 75%, etc. The most commonly used shade net color is green. 
    flat roof shade net

    Insect Net

    An insect net costs almost 70% more than a shade net. It has tiny holes that do not allow insects to pass through. One standard design adopted by many nursery and kitchen garden owners is to use insect net on the sides and shade net on the top. This choice helps in keeping costs low, providing limited protection from insects, and also maintaining the temperature near room temperature owing to natural ventilation.                                            
    flat roof shade net

    Poly sheets

    While using a shade net or insect net, one cannot necessarily control the climate inside the greenhouse to a large extent. Poly Ethylene or PolyCarbonate or other plastic-based coverings provide an excellent option for creating a climate-controlled greenhouse. Because of the plastic covering used, these structures are commonly referred to as poly house.

    A poly-house is the structure of choice in climatic zones that experience varied weather conditions like extreme heat, or cold, or rains, or hail storm, etc. Within the poly-house, one can opt for temperature control through natural ventilation, foggers, and exhaust fans, or a slightly costlier cooling pad and fan system.
    flat roof shade net

    Glass

    Glass based structures are recommended in the regions that experience extreme cold climate.

    So how much does it cost to set up the outer structure?

    Coming to the cost for these structures, the following were the ballpark estimates for setting up one acre of GreenHouse at prevailing market rates in 2019.


    Do note that these prices are for an acre. The lower the area, the higher will be the cost per sq. M and vice versa. This non-linearity in pricing exists because the larger size allows for amortization of fixed costs, like that of labor and installation over a larger area, bringing the cost per sq M down.
    Flat Roof Shade Net with Cable purlin (Wire Rope Net House) - 9 L to 12 L (11 to 14 in 2021)
    Flat Roof Shade Net with Pipe purlin (Shade Net House) - 15 L to 18 L (18 to 22 in 2021)
    Dome-shaped Poly house (naturally ventilated Poly House) - 28 L to 33 L (32 to 36 in 2021)
    Dome-shaped Poly house with fan and pad cooling system (Climate Controlled Poly House) - 43 L to 48 L (50 to 55 in 2021)
    Returning to our car's analogy, now that you have a fair idea of cost for outer structure, you need to select the car that will suit your requirements best. Do you need to go from point A to B in city traffic, or will you mostly be doing off-roading? Are you ok with an open jeep, or do you need a state of art dual climate control system?


    You must make all those decisions to arrive at the optimal choice of outer structure that fits your specific needs. It can cost you as low as 9 L (11L in 2021) and as high as 48 L (55L in 2021), depending upon the conditions that will suit your needs. 


    After having covered the first component of cost, it is now time to look at the second component, which is the cost of setting up the hydroponic growing structures. To cover the second part, we will consider the most commonly used Hydroponic structure in the Indian context. Let us have a look at the cost of setting up an NFT Hydroponic system inside the farm.


    HappyFarming!
    ]]>    Sat, 07 Jul 2018 09:27:02 +0530