Last updated: 14 Dec 2025
Cost & Profit Analysis of Apple Farming: A 10-Year Financial Review
Many people see apple farming in Himachal Pradesh, Kashmir, and Uttarakhand as something romantic, but in reality, it is a business rather than just a hobby.
In my 10 years managing orchards, I have seen farmers struggle not because they couldn’t grow apples, but because they had trouble managing their cash flow.
Based on my experience, here is a clear 'Audit Report' for a 1-acre apple orchard, using real market rates for 2024-25. I hope these insights help you improve your approach to apple farming.
Financial Breakdown: Table of Contents
Fig 1: High-quality grading is the key to maximizing profit margins.
1. Initial Setup Costs (Year 1)
| Expense Head | Estimated Cost (INR) | Notes |
|---|---|---|
| Land Clearing & Pits | ₹30,000 | JCB + manual work |
| Plant Material | ₹60,000 - ₹1,00,000 | M9 costs more |
| Fencing | ₹50,000 | Protects from animals |
| Drip Irrigation | ₹40,000 | Subsidy available |
| Manure & Fertilizers | ₹15,000 | Initial soil nutrition |
| TOTAL CAPEX | ₹1.95 – ₹2.35 Lakh | One-time investment |
High Density: Add ₹2 Lakhs for Trellis system.
2. Annual Operational Costs
- Sprays: ₹15,000
- Fertilizers: ₹12,000
- Labor: ₹15,000
- Weed Control: ₹5,000
Total: ₹45,000 – ₹50,000 per acre
3. Traditional vs High Density Yield
- Traditional: 250–300 boxes/acre
- High Density: 800–1200 boxes/acre
4. Calculating Revenue
Traditional Orchard
- 10 Tons = 500 boxes
- Rate: ₹60/kg
- Gross Revenue: ₹6,00,000
High Density Orchard
- 20 Tons = 1000 boxes
- Rate: ₹80/kg
- Gross Revenue: ₹16,00,000
5. Hidden Costs
- Carton + Trays: ₹70–₹80
- Packing Labor: ₹30
- Freight: ₹80–₹100
- Commission Agent: 6–8%
Roughly ₹200–₹250 per box is deducted.
6. Net Profit Breakdown
| Metric | Traditional | High Density |
|---|---|---|
| Gross Revenue | ₹6,00,000 | ₹16,00,000 |
| Field Maintenance | ₹60,000 | ₹1,00,000 |
| Packaging/Marketing | ₹1,50,000 | ₹3,50,000 |
| NET PROFIT | ₹3,90,000 | ₹11,50,000 |
7. ROI Timeline
- Traditional: Break-even in 7–8 years.
- High Density: Break-even in 4–5 years.
Conclusion
Apple farming can be profitable if you manage your finances carefully. Traditional orchards usually earn ₹3–4 Lakhs per acre, while high-density orchards can earn more than ₹10 Lakhs. Here’s a simple approach to help you succeed..
Start with a small plot so you can learn how to manage your finances. Once you feel confident, you can expand your orchard.
Also Read: Step-by-Step Irrigation Guide for Apple Orchards
Data Sources & References:
- NHB - Cost Norms
- Dept. of Horticulture, HP
- SKUAST Kashmir - HD Economics
