Is Hydroponics a ‘Fad’ Business?

“Rome wasn’t built in a day”. This is something we have heard in many instances in our lives. And this goes true for even for huge innovative ideas and methods which are greatly different from traditional means. One such innovation ins hydroponics or soil-independent agriculture. Hydroponics is comparatively new and still in the development field of agriculture regarding which many people have several questions and doubts which need to be cleared out before they can venture into the system and invest. Expenses and Return on Investment remains one such doubt that farmers have to worry about when thinking about hydroponics because hydroponics despite its given advantages is quite more expensive than other methods of agriculture. So let us first see why hydroponics is expensive in the first place:

  1. Whatever kind of hydroponic system one builds, they will need containers, lights, pump, timer, growing media, nutrients, seedbeds, and so on. The market for hydroponics still being new these things is pretty rare to find especially in India where traditional agriculture remains a go-to choice for the general enthusiast.
  2. Since hydroponics is an extremely modern system of agriculture, it requires several high-tech pieces of equipment to maintain a proper yield. These equipment are fairly expensive and sometimes require rigorous maintenance which further adds to the cost.
  3. Hydroponic systems require extensive training and specialization to maintain over time. As a result, commercial growers are often speculated about the extra costs that one might face in order to train the staff properly to maintain the systems.

However, as we mentioned earlier, “Rome wasn’t built in a day”, similarly the field of hydroponics is still a relatively new process, and like every other thing, it has its own downsides. However, with our extensive research and personal experiences we would like to clarify how despite being a bit expensive, hydroponics still be of better value and profit:

  1. Although the initial expenses are high, once the setup is complete the recurring costs only apply for nutrients and electricity charges for keeping the water, temperature, light equipment working. And as for availability goes, with proper planning and consultation, sourcing the materials is very cost-effective. And since it is a very precise system the number of nutrients/fertilizers that are required can be managed effectively to yield maximum profit with minimal costs.
  2. Managing high-tech equipment can get tough but with proper execution and system structuring, maintenance costs can be greatly minimized.
  3. Working capital is much less for hydroponic farms as compared to traditional works. It does not need a large labor force to be maintained as it is self-sustainable and easy to monitor.
  4. Since hydroponic farming can be executed year-round due to its use of machines that can mimic environmental factors, several crops can be grown irrespective of season, which means there is a steady source of income year-round.
  5. Hydroponic systems being soil-free require none or very less amount of pesticides, this means the cost of pesticides is very less or none.
  6. Since the system can work even in congested areas, it has been found that 1 acre of NFT leafy hydroponic farm is equivalent to 6 acres of the same leafy soil farm. This means that even with a smaller area; hydroponic systems can be more profitable.
  7. Lastly, The Global Hydroponics Market is projected to register a CAGR (Compound Annual Growth Rate) of 6.8% over the forecast period (2020-2025). It was valued at USD 23.94 billion in 2018. With such impressive growth rates, the market is getting far less expensive for investors as it was previously and now it is a great time to explore this vastly sustainable field of agriculture.

Hope this blog helps clear your doubts and feel free to reach out to us for further information and queries. We here at Kamala not only have consultants for your farming queries but for your marketing and management queries as well, so any problem that comes with farming we can help you tackle them as well!

If you are an aspiring entrepreneur, a modern-day farmer, or an organic farming enthusiast. If you are stuck with any project or need guidance on your next cultivation. Simply contact us through the website or any of our social media handles. We provide one-on-one guidance, tips, and consultation for your every agriculture query.

Edited by – Shubham Tiwari

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Kamala Farms

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