Chennai, Dec 19 (IANS): Soon after starting his campaign for the 2021 Assembly polls from his Edapaddi constituency, Tamil Nadu Chief Minister K. Palaniswami on Saturday announced Rs 2,500 cash as a Pongal festival gift to all holders of ration cards eligible to draw rice from the public distribution system.

He said the cash incentive will be distributed from January 4, 2021 onwards so that people can celebrate the Pongal harvest festival.

Recently, the state government had announced holders of ration cards eligible to buy sugar can switch to rice cards.

According to Palaniswami, the Pongal package will benefit 2.6 crore rice card holders and will be disbursed before the Pongal festival. The Pongal festival falls on January 14.

Last year, the cash incentive was Rs 1,000 and it has now been increased by Rs 1,500.

In addition to cash of Rs 2,500, one kg rice, sugar and one full sugarcane will also be given free to the ration card holders.