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7. Issues in Protected Cultivation
The protected cultivation technology is wide spread
across the country. The commercial viability and
sustainability of the technology is limited to few clusters
in traditional states like Karnataka, Tamil Nadu and
Maharashtra. The issues and suggestions for sustainable
growth of protected cultivation technology are as under:
• High capital investment
o The present cost of investment is unsustainable
without capital subsidy support from
Government
o There is need for developing low cost poly house
designs suitable for various agro climatic zones.
• High cost of planting material
o 100% planting material of the poly house
varieties are imported and cost of seeds and
planting materials is very high
o Need for developing domestic varieties
matching with the productivity and quality of
imported seeds
• Lack of diversification
o There is monopoly of few crops like colored
Capsicum, Gerbera, Carnation, Rose etc.,
o There is a need for promoting more crops
Product
Major market
Competitiveness
Rose
Export
With the growing domestic consumption the price realization in the domestic market is very
close to export prices. Many small units are now focusing on domestic market. The large
volumes are exported on valentine and new year days.
Gerbera
Domestic
Not economical to export due to un competitive price and fright rates
Carnation Domestic
Not economical to export due to un competitive price and fright rates
Orchids and
Anthurium
Domestic
International prices are less than the domestic prices
Colored
Capsicum
Mainly domestic. Small exports
to Gulf and Asian Countries
Growing domestic market. Less competitive export market in terms of quality and price
Other vege-
tables
Domestic
Growing domestic market. Less competitive export market in terms of quality and price
under protected cultivation for sustainability of
protected cultivation
• Lack of institutional arrangement
o There is no dedicated institutional arrangement
for R&D, planning and promoting protected
cultivation and for providing backward and
forward linkages
• Lack of markets information
o Market for produce from protected cultivation
is highly fragmented and privately operated by
very few aggregators. Growers are over depend
on these aggregators
• Credit support
o Since investment cost of protected cultivations
is very high, providing adequate collaterals is
a concern and is affecting the credit flow to the
sector
o The production credit for crops cultivated under
protected cultivation is very high as compare to
open cultivation. In absence of scale of finance
for crops under protected cultivation, the
banks are applying the scale of finance of open
cultivated varieties leading to under finance
o Lack of insurance coverage against income and
production risks is detrimental for growth of
area under protected cultivation
Type of ploy house
Vegetables
Flowers
Net Income (Rs./sqm)
IRR (%)
Net Income (Rs./sqm) IRR (%)
1. Green House (Pad and Fan System)
230
12
380
17
2. Naturaly ventilated polyhouse
190
25
340
32
3. Shade Net
150
20
290
27
4. Walk in Poly Tunnels
130
20
240
20
5. Market
Major market for produces from protected cultivation
is domestic market, only Rose and colored capsicum is
being exported. The product wise competitiveness and
potential are presented in the table below:
