Farmers having more than five acres of land and not eligible under the Centre's scheme will get Rs 10,000 every year, he said.
The tenant farmers will also get the benefit of the scheme, said Agriculture Minister S. Chandramohan Reddy. The scheme would benefit 54 lakh farmers, he added.
In the interim budget presented in Assembly last week, the government allocated Rs 5,000 crore for the scheme.
The minister said money will be deposited in the farmers' bank accounts by the end of February. It will include Rs 2,000 given by the Central government.