The government on Thursday announced an increase of Rs 105 a quintal in the minimum support price of paddy at Rs 850 per quintal for this year.

Announcing the decision after the meeting of the Cabinet Committee on Economic Affairs, Finance Minister P Chiadambaram said this is an ad-hoc measure and the recommendation of Commission for Agricultural Costs and Prices has been referred to the Prime Minister's Economic Advisory Council.

The CACP had recommended the paddy MSP at Rs 1,000 per quintal for 2008-09 Kharif season.

Last year, the paddy MSP was Rs 645 per quintal for common variety and Rs 675 a quintal for higher grade. The Centre had also offered a bonus of Rs 100 per quintal over and above the MSP.

Inflation, the silent killer