India is the second largest producer of vegetables in the world next to China. The cabbage is the major vegetable crop of Karnataka. The study was conducted in Belagavi, Haveri and Kolar districts to analyze cost and returns of seedling rising in nursery under shade net condition. This study also attempts to estimate the area under cultivation of cabbage in Karnataka and also to forecast the demand for cabbage seedlings during 2019-20. The results indicated that the area under cabbage cultivation estimated to be 11263 hectare and the demand for cabbage seedlings are 62.57crores in the state of Karnataka for the agricultural year 2019-20. The analysis of the study indicated that, the nursery entrepreneurs have invested ` 265977 towards setting up of nursery in an area of 1000 m2 under shade net on their own. The economic analysis pointed out that entrepreneurs have realized gross income of ` 248920 and net returns of ` 77383 per time. The capital investment on cabbage nursery was found to be economically viable in terms of Net Present Worth (` 119836), Benefit Cost Ratio (1.30) and Internal Rate of Returns (78%).