Nursery (1 acre) for ₹8 lakh: Cost, Subsidy & Income (2026)

As per the government model report, the basic Nursery (1 acre) costs ₹8 lakh. A nursery to raise fruit and vegetable seedlings. 50% of cost norm (MIDH) — up to ₹4 lakh support; your share is about ₹80

 · 4 min read
Nursery (1 acre) for ₹8 lakh, about ₹4 lakh subsidy
Nursery (1 acre) · Basic unit
₹8 lakhto start
1 acreCapacity
50%Subsidy
~2.4 yrsPayback
In 60 words

As per the government model report, the basic Nursery (1 acre) costs ₹8 lakh. A nursery to raise fruit and vegetable seedlings. 50% of cost norm (MIDH) — up to ₹4 lakh support; your share is about ₹80 thousand. Year-3 net profit ~16% of sales is expected, but the bank margin is thin — fix buyers and prices first.

Source: MSME-DI Chennai – Project Report on Fruit Nursery · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹8 lakh

₹80 thousandYour share10%
₹3.2 lakhBank loan40%
₹4 lakhSubsidy50%

From your pocket only ₹80 thousand — the subsidy is credited to your loan account.

02Income over 5 years

Yearly sales (blue bar) · Net profit (green)

Year 1
₹6.3 lakh
Loss ₹1.22 lakh
Year 2
₹9.73 lakh
Profit ₹40 thousand
Year 3
₹13.4 lakh
Profit ₹2.17 lakh
Year 4
₹13.8 lakh
Profit ₹2.25 lakh
Year 5
₹14.2 lakh
Profit ₹2.33 lakh

net profit ~16% of sales · payback ~2.4 years · Includes interest, depreciation and a 5% yearly rise in costs.

Note: by bank standards this model has a thin margin. Fix buyers, prices and costs first.

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for loan + subsidy50% of cost norm (MIDH)
  5. Produce and sellIncome starts from year 1
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04Who is it right for?

Owners of 1 acre of land with water
Farmers who know horticulture
People who can get government or FPO orders

053 mistakes that cause losses

Not planning for the sales seasonthe numbers are tight
Not checking mother plant and seed quality
Not getting accreditation or a licence

06Frequently asked questions

Who buys nursery plants?

Farmers, government planting drives and FPOs — mostly in the planting season.

What government support is there for the Nursery (1 acre)?

50% of cost norm, linked to a bank loan, back-ended.

How much can the Nursery (1 acre) earn?

In the government model, year-3 sales are about ₹13.4 lakh with net profit ~16% of sales; payback ~2.4 years.

Nursery (1 acre) — Want to start?

Tell us your district and budget — an expert will suggest the next step for free.

Chat on WhatsApp+91 86250 77758Full details →

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Source: MSME-DI Chennai – Project Report on Fruit Nursery · MIDH Guidelines 2025
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
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Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 86250 77758