Under the scheme, the government will transfer ₹6,000 per year to each land-owning farmer family. The aim is to supplement the income of small and marginal farmers. It provides a basic level of financial stability. But the real potential lies in what that money accomplishes.
Because payment is made via direct transfer of benefits to bank accounts, this provides three crucial benefits. First, it minimizes leakage. Secondly, delays are avoided. Third, it bypasses middlemen. The result is that real funds reach the last mile beneficiaries.
Then there is the mandatory KYC and the creation of digital documents. Every farmer has to link an Aadhaar identity, a bank account and a mobile number. This data creates a verified digital footprint for millions of farmers.
Why does that matter?
Because agtech companies and financial services providers now have the raw material for transparency, traceability and scale. A database of farmers with verified identities and accounts allows us to evaluate credit risk. It helps with advisory services and targeted agricultural solutions. In short, it brings rural farmers into the formal economy and makes them creditworthy in a measurable and structured way.
This is where PM-Kisan reveals its transformative power. The plan is not just about cash flow. It builds data-driven infrastructure. It converts generative agricultural knowledge into useful insights. This allows machine learning models to identify patterns in crop management, nutrient use and yield improvements. It enables accurate advice while improving incomes and empowering farmers.
It also facilitates better post-harvest management. If farmers are not looking for emergency cash, they can plan for storage, drying, sorting and marketing, rather than responding to distress sales. And agritech and collateral management companies can build services like warehouse receipts (WR) around these choices because the underlying data is now reliable.
The socio-economic ripple effect is large. Farmers gain financial stability and adopt technology faster. They become not only producers, but also consumers of digital services. Their savings are increasing and their dependence on informal credit is decreasing. Several studies have shown that timely and predictable income support improves farmers’ cash flow and reduces short-term borrowing pressure.
Of course the system is not perfect. There are still challenges surrounding completion of KYC, bank account seeding and land record updates. These operational shortcomings may prevent eligible farmers from receiving payments on time. Strengthening these processes is essential for the program to reach its full potential.
This reminds us that policy design matters and implementation counts.
What should happen next?
First, agritech companies and the government must work more closely to translate the data into meaningful services. Price forecasting, storage advice, storage integration, input optimization, credit scorecards and digital market access need to be accelerated. Farmers themselves are now asking for digital tools, crop guidance and better market information from the system.
Second, the data ecosystem must remain secure and inclusive. Digital documents should empower farmers, not expose them. The benefits must reach the least privileged, the small and marginal farmers and the tenant farmers who are often on the edge of the subsidy.
Third, policies must evolve. Support for basic income is important, but building on it by offering tiered services is key. PM-Kisan lays the foundation. Now we need the roof and walls of digital agritech services in place.
In conclusion: PM-Kisan is not just any subsidy scheme. It is the gateway to a new era of Indian agriculture. One where data and tradition meet, where technology meets the field, where farmers become empowered actors in modern value chains. If we get this right, we can transform agriculture from survival mode to strategy mode.
I speak as someone who sees every day how digital infrastructure, data and farmer empowerment come together to deliver real impact. Now is the time to act.
The author is co-founder and CEO of Staragri. The opinions are personal.
Published on November 29, 2025
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