Artificial Intelligence (AI) and the Internet of Things (IoT) could significantly improve the profitability of India's shrimp farming sector. A new pilot study by the Indian Council for Research on International Economic Relations (ICRIER) found that integrating these technologies into shrimp farms could increase annual net returns by more than 80%, while reducing feed consumption, labour costs and energy use.
According to the study, estimated annual net returns increased from ₹5.63 lakh per acre under conventional shrimp farming to ₹10.40 lakh per acre with AI and IoT integration. The findings also indicate improvements in feed efficiency, productivity and farm management.
One-Acre Farm Pilot Demonstrates AIoT Benefits
The pilot was conducted on a one-acre shrimp farm in Karamsana village, Sirsa district, Haryana, between March and October 2026. The study was authored by ICRIER Distinguished Professor Ashok Gulati, fellow Raya Das and research associate Tanay Suntwal.
Three technologies developed by Vijayawada-based Aqua Exchange were deployed on the farm:
- PowerMon: Monitors electricity consumption, manages aeration and sends mobile alerts about power fluctuations. It costs approximately ₹5,085 per cycle on a rental basis.
- Automatic Feeder: Distributes feed evenly, records daily feeding reports through a mobile application and reduces the need for manual feeding. Its cost is approximately ₹12,712 per cycle.
- Aerator Starter: Automatically or remotely operates aerators, protects motors against power fluctuations and sends alerts to farmers. One unit can manage four to six aerator operators and costs approximately ₹16,949.
Together, these devices help farmers manage feeding, aeration and electricity consumption with less manual intervention.
Better Feed Efficiency and Lower Operating Costs
One of the important findings was the improvement in Feed Conversion Ratio (FCR), which measures how much feed is required to produce a unit of shrimp biomass.
The study reported that AIoT adoption could reduce FCR by nearly 30%, indicating better feed utilisation. It also highlighted that labour costs could decline by up to 50% through automation.
The Karamsana pilot farm reportedly used nearly half the feed required by an average pond to produce the same quantity of shrimp. In the Aqua Exchange sample, approximately 83% of crops were successful, compared with around 67% in farms operating without the technology.
These findings suggest that automated feeding and power management can help farmers reduce wastage, improve operational efficiency and manage production costs.
High Installation Costs Remain a Major Challenge
Despite the promising results, the study identified affordability as a major barrier to wider adoption.
A basic IoT setup can cost approximately ₹1 lakh per pond, making the investment difficult for small and marginal farmers. Around 90% of India's aquaculture farmers operate holdings of just three to five acres, meaning technology packages designed for larger farms may not be financially suitable for them.
The report also highlighted gaps in farmer training and technical support. Many technology providers install devices but do not adequately guide farmers on interpreting readings and using the information for daily farm decisions.
Access to finance is another concern, particularly for farmers who cannot offer leased ponds as collateral for loans.
ICRIER Proposes a National AIoT Mission
To address these challenges, the ICRIER paper recommends establishing a time-bound National AIoT Mission to accelerate technology adoption in shrimp farming.
The proposal includes developing Sirsa as a demonstration cluster and encouraging technology deployment through a competitive, platform-neutral framework. The study also emphasises the need for affordable financing, farmer training and stronger supply-chain traceability.
Technology Could Strengthen India's Shrimp Export Competitiveness
India is the world's second-largest shrimp exporter after Ecuador. During 2025–26, India's seafood exports reached $8.46 billion, with frozen shrimp contributing $5.6 billion, accounting for 66.2% of the total.
As international markets increasingly emphasise traceability, sustainability and production efficiency, adopting AI and IoT could help Indian shrimp farmers improve productivity while controlling costs.
The ICRIER study suggests that the future of shrimp farming will depend not only on increasing production but also on producing more efficiently. However, translating the gains from a single-farm pilot into widespread adoption will require affordable technology, institutional support and accessible financing.
