Over-extraction of groundwater has led to increased soil salinity in India’s north-western states, particularly in western Haryana, reducing crop productivity and making traditional paddy crop cultivation less viable. Since 2020, capital investment subsidies under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) have encouraged farmers in Sirsa district, Haryana to adopt shrimp aquaculture as a high-value diversification strategy in saline-affected lands. This policy brief examines the economic viability, scalability, and sustainability of shrimp aquaculture in Haryana, drawing on primary field insights from Sirsa district and comparative evidence from West Godavari, Krishna and Kakinada districts in Andhra Pradesh, India’s leading shrimp-producing state. The analysis reveals that in Sirsa, even with a single shrimp cycle per year, farm-level profitability is 4 to 5 times higher than the prevailing paddy-wheat cropping system. In contrast, Andhra Pradesh, where two shrimp cycles per year dominate records about 10 times increase in profitability compared to paddy–paddy cultivation. However, shrimp aquaculture entails substantially higher capital investment and working-capital requirements. Also, the risks are much higher and that makes the entry of new players difficult. Our risk simulation models estimate a high probability of farmers exiting the business due to production risks induced crop failures. This calls for better production system, access to finance, market, and insurance mechanism to be in place so that scaling up of shrimp farming can be viable. Policy measures such as local feed and processing infrastructure, vertical value-chain integration, IoT-enabled resource-use efficiency, and stronger FPO-led market access are essential to ensure long-term sustainability. If appropriately supported, shrimp aquaculture can transform salinity-induced agrarian distress into a high-value economic opportunity for farmers in Haryana.
