On a Sunday morning, two roommates, Riya and Tanvi, were scrolling the grocery app to finish their weekly shopping. “Oh no, not again!” Tanvi exclaimed, turning to Riya in disbelief, “The prices of lentils have increased again”. Riya, checking the prices, joked, “I think the prices will continue to rise until they align with the prices of gold, and we might have to store it in our locker”.
They laughed. But behind this laughter hid a real concern. For many people living in Indian cities, grocery bills have become unpredictable. Food inflation, shifts in trade policy, unpredictable weather, and rising fuel costs all creep into their monthly budget.
Tanvi continued scrolling and exclaimed again, this time with joy, “Oh, look. Here’s a separate section for hydroponically grown products!” Riya, confused, asked, “Hydro- what?” “Hydroponic farming”, Tanvi explained, “is a farming technique in which crops are grown in nutrient-rich water rather than soil, by controlling nutrients, light, and temperature. This technique produces crops faster and uses less water than conventional farming. My colleague quit her job a few months ago to start her own hydroponic farm”. Riya frowned, “I am confused now. This sounds unusual. Plus, the products are priced higher than the traditional ones. But considering the volatility of the food prices, this actually makes sense.”
Behind the casual conversation between Tanvi and Riya lies a larger economic story of hydroponic farming. For centuries, agriculture in India has been dependent on the monsoon. Moreover, fragmented land-holdings, inefficient supply chains, depleting groundwater, post-harvest losses, rising fertilisers, seeds, and diesel costs pose significant structural changes to the sector. These problems are also compounded by expanding cities and a growing population, placing increasing pressure on the existing land. This results in over-intensive cultivation, leading to soil degradation, nutrient depletion, and lower yields over time.
In this context, hydroponics can offer promising solutions to these problems. The core idea of hydroponics is simpler than it appears. There are trays full of water and holes at the top. Nutrients—nitrogen, phosphorus and potassium (NPK)—are dissolved in this water and added periodically throughout the week. The roots of the plant develop in the water and take up nutrients as it grows. Additionally, the water serves as a source of oxygen. Nevertheless, extra oxygen is produced via an air pump that secretes and controls the reservoir's oxygen content. The LED lights are set up to simulate sunlight to support photosynthesis. It shines for 12-16 hours a day.
Currently, in India, high-value, exotic leafy greens, herbs, and vining vegetables, including lettuce, spinach, kale, basil, tomatoes, cucumbers, bell peppers, strawberries, and zucchini, are produced hydroponically.
Because hydroponic produce is grown in a controlled environment, harvests are less susceptible to climate change and pest attacks. It enables year-round production, supports multi-crop cycles, produces higher yield per square foot, and requires 90 per cent less water than conventional farming. Further, hydroponic systems can be set up in warehouses and semi-urban plots, close to cities where consumers live. This can shorten the supply chain, and minimize spoilage associated with transporting produce. This could help reduce the volatility in food prices. Moreover, supermarkets and restaurants may prefer sourcing fresh produce directly from these urban producers.
Why aren't we seeing farming completely transition to hydroponic methods?
From building lighting and climate control systems to installing nutrient pumps, setting up hydroponic farms incurs a huge investment. This means that hydroponic farms are often built by well-funded companies or investors. For instance, various startups involved in the industry—Nutrifresh and UrbanKisaan—have raised venture capital to make it commercially viable. Small and marginal farmers, who constitute a massive segment of the agricultural population, are often unable to access similar financial resources. This high cost of adoption risks may widen income inequality within the agriculture sector.
Conventional farmers operate under the demand and supply conditions. A good season produces a large volume of vegetables, causing prices to fall. The farmers compete with each other in the market and have little power to influence the price. Given the advantages hydroponic farming has, it has the potential to dominate high-value chains. However, these benefits are likely to be accrued by the urban producers who have access to financial resources thereby generating technological gaps.
These gaps can be mitigated by building strong institutions. For instance, NABARD is offering government-backed subsidies to support hydroponic projects. A cost-effective way is to begin by opting for modular or container-based systems. Beginning with a smaller setup enables farmers to demonstrate profitability before expanding operations.
In addition, the rural farmers can consider setting up community hydroponic farms through Farmer Producer Organizations (FPOs). In hydroponic farming, where precision is crucial, FPOs can help farmers access quality inputs, technology, training, and create stronger market linkages that reduce post‑harvest losses and expand opportunities both locally and beyond. Collaborative efforts can also increase bargaining power, reduce dependence on intermediaries, and secure better prices for their produce.
Furthermore, international organisations such as the Food and Agriculture Organisation (FAO) support hydroponic initiatives. The project is designed to train unemployed agricultural engineer graduates, local farmers and women to use low-tech hydroponic systems. The government, too, can promote equitable adoption of the advanced farming technique by setting up microfinance institutions and organising training programs.
The future of agriculture in India will not only depend on technology but also on how markets, institutions, and policies will ensure that accessible, equitable, and actionable information is crucial for the success of all farmers.
Ishita Narvekar
