Capsicum Farming in Kerala 2026 — Complete Guide
Capsicum (bell pepper) farming is one of the most profitable vegetable cultivation options in Kerala — with high market demand, government subsidies for polyhouse cultivation, and strong export potential. This guide covers everything NRIs and agri-entrepreneurs need to know to start capsicum farming in Kerala in 2026.
Why Capsicum Farming in Kerala?
- High demand: Hotels, restaurants, supermarkets, and export markets
- Price: ₹40–120/kg (coloured capsicum commands premium)
- Government subsidies: Up to 50% for polyhouse construction
- Year-round cultivation possible with polyhouse
- Export potential: UAE, Gulf countries, Europe
- ROI: 40–80% annually for polyhouse cultivation
Cultivation Methods
| Method | Investment | Yield/Acre | ROI |
|---|---|---|---|
| Open field | ₹1–2 Lakhs/acre | 8–12 tonnes | 30–50% |
| Polyhouse | ₹15–25 Lakhs/acre | 25–40 tonnes | 50–80% |
| Hydroponics | ₹30–50 Lakhs/acre | 40–60 tonnes | 60–90% |
Government Subsidies 2026
- National Horticulture Mission (NHM): 50% subsidy on polyhouse construction (up to ₹700/sq m)
- MIDH (Mission for Integrated Development of Horticulture): Drip irrigation subsidy up to 55%
- Kerala Horticulture Development Programme: Seed, fertilizer, and training support
- NABARD: Agricultural loans at subsidized rates
- PM Kisan: ₹6,000/year direct benefit for farmers
Best Districts for Capsicum in Kerala
- Wayanad — cool climate, ideal for coloured capsicum
- Idukki — hill station climate, premium quality
- Palakkad — large flat land, good water availability
- Thrissur, Ernakulam — proximity to markets
Market Linkages
- HORTICORP (Kerala Horticulture Development Corporation) — guaranteed buyback
- Supermarkets: Lulu, Reliance Fresh, More, Big Bazaar
- Export: APEDA Registration for Gulf and EU markets
- Online: BigBasket, Blinkit, Swiggy Instamart
Finance & Registration
- Business Loans up to ₹10 Crores
- GST Registration
- APEDA Registration — for export
- Organic Certification — for premium pricing
- Business ROI Calculator
Related Agri-Business Guides
- Dragon Fruit Farming Guide
- Rubber Plantation Guide
- Spice Export Guide
- Mushroom Farming Subsidies
- Medicinal Plant Farming Subsidies
City-Specific Guides
Kochi | Trivandrum | Kozhikode | Thrissur | Malappuram | Kannur
Related Blog Articles
📌 Ready to Start Capsicum Farming?
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⚠️ Disclaimer: Subsidy amounts and yield figures are indicative. Subject to government policy changes. Blueberry is a business services facilitator. ASCI compliant.