Chennai, Jan 3 (IANS): Tamil Nadu Chief Minister O. Panneerselvam on Tuesday assured farmers that the government would pay compensation for crops damaged in drought on receipt of reports by different groups.

He also said the government would provide a bag containing rice, sugar, cardamom, cashew and sugarcane as a Pongal gift to ration card holders to celebrate the festival.

In a statement issued here, Panneerselvam said the government would form different groups comprising of ministers and officials who would tour the districts and submit their reports.

Panneerselvam said based on the extent of the damage outlined in the reports, compensation would be given to the farmers.

He said as per the central government's guidelines the state government could announce a district as drought affected only after a survey of crops in 10 per cent of the villages in each district.

Paddy farmers could obtain a maximum insurance compensation of Rs 25,000 per acre while compensation for other crops would be based on the extent of damage, Panneerselvam said.