The Union Cabinet today approved a comprehensive new policy for farmers that leverages artificial intelligence, direct benefit transfer 2.0, and a revamped subsidy framework. The 'Smart Kisan Yojana' aims to increase farm incomes by 25% over the next three years.

🔹 Key pillars of the new policy

Agriculture Minister Narendra Singh Tomar announced four main components: AI-based crop advisory, real-time soil health monitoring, simplified subsidy access, and a digital marketplace integration. The policy will be rolled out in 200 districts initially, covering 15 million farmers.

Minister's statement

"This is the biggest reform since the Green Revolution. We are putting technology in the hands of every farmer—from crop selection to selling produce at the best price," Tomar said.

AI-powered crop monitoring

Using satellite imagery and AI algorithms, farmers will receive pest attack warnings, irrigation schedules, and fertiliser recommendations via SMS and mobile app in their local language. Pilot projects in Karnataka and Haryana showed a 18% reduction in input costs.

25%target income increase
200pilot districts
1.5 crfarmers to benefit

🔹 Subsidy overhaul: DBT 2.0

Instead of subsidising inputs (fertiliser, seeds), the government will directly transfer money to farmers' accounts based on landholding and crop patterns. This "Kisan e-wallet" can be used to buy any approved inputs from registered dealers, ensuring transparency and choice.

How it works

  • Registration: Farmers verified through land records and Aadhaar.
  • Allocation: Per-acre amount credited before sowing season.
  • Flexibility: Farmers decide what to purchase—seeds, pesticides, or even rent farm machinery.

🔹 Digital marketplace integration

The policy mandates integration with the electronic National Agriculture Market (e-NAM). Farmers can auction produce online, discover real-time prices, and get paid directly. Private mandis will also be onboarded. Currently, e-NAM covers 1,000 mandis; the target is 3,000 by 2025.

Mobile app for farmers

A unified app 'Kisan Mitra' will provide weather forecasts, market prices, expert advice, and policy updates in 12 languages. It will also have a chatbot to answer farmer queries 24/7.

🔹 Challenges and implementation roadmap

Officials acknowledge challenges in last-mile connectivity and digital literacy. Village-level entrepreneurs (VLEs) will be trained to assist farmers. The first phase begins June 2024, with full rollout by 2026. A ₹20,000 crore budget has been allocated for the first two years.