New Delhi, June 12: The government today announced a hike in the minimum support price of rice to Rs 850 per quintal and said it was an ad hoc measure, while referring a proposal of the farm price panel to raise the support price to Rs 1,000 per quintal to the Prime Minister’s economic advisory council.

In addition to the support price of Rs 1,000 per quintal for the common variety of paddy, up from Rs 745, the commission for agricultural costs and prices has proposed a support price of Rs 1,050 for Grade A variety against Rs 775 now.

“In view of divergent opinions (held by various states), the matter was today referred to the Prime Minister’s economic advisory council,” finance minister P. Chidambaram told reporters after a meeting of the cabinet committee on economic affairs.

“Farmers have been given good prices, which is reflected in production and procurement, but a Rs 255 hike will be a very sharp rise,” he said.

The government has announced the ad hoc increase in the support price as sowing has started in some states such as Kerala, Karnataka and Madhya Pradesh after the arrival of monsoon in the country on May 31.

Chidambaram said the support price of the common variety increased by Rs 60 a quintal from 1999-2000 to 2003-04, while it was raised by Rs 195 between 2003-04 and 2007-08. This is not the first time that the farm price panel recommendations are not being implemented in totality, he said.

Only 14 states responded to the recommendations of the panel, and nine wanted a hike to Rs 1,000 and above.