Tamil Nadu Chief Minister M. Karunanidhi launched the one rupee a kilo of rice scheme for ration card holders from September 15, 2008. Till then, it costed two rupees a kilo. As per the one rupee a kilo of rice scheme, 20 kilos of rice will be provided at a price of one rupee a kilo.
The scheme was announced on the occasion of the 100th birth anniversary of Annadurai, former Tamil Nadu Chief Minister. Annadurai was a follower of E.V.R. Periyar, the founder of the Dravida Kazhagam, and was at the forefront of the rationalist movement.

It was estimated that this scheme would benefit 1.86 crore families though the move would lead to an additional expenditure of Rs.400 crore annually for the TN Government.
DMK in its 2011 election manifesto has announced the continuation of "one kg rice for Re.1" scheme and distribution of pulses and fortified wheat at subsidised rates. They also announced that the poor identified as Anthyodhaya card-holders will get their quota of 35 kg rice free of cost instead of Re.1 per kg they have to pay now. The number of beneficiaries estimated would be around18.64 lakh families.
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