Mukherjee intervened at the Chief Ministers' conference on prices when Modi was slamming the Centre for its policies and questioning the fulfilment of their election promises on sale of wheat and rice at Rs 3 per kg for below poverty line people.
The Union Minister accused Modi of politicising the issue and the Gujarat Chief Minister, in turn, said there was no politics in asking the Centre about its promises, sources said.
When asked about the spat later, Modi told reporters, "I am only asking them to meet at least their election promise. What is politics in it?"
Modi accused the Centre of not being ready with any action plan to cool down surging prices.
Since the meeting was called to discuss how poor people can get enough food at cheaper rate, he would not ask for more, but what has been promised must be fulfilled, Modi said on the sidelines of the conference.
He said that there was no vision or action on the part of the Centre to tackle price rise and it did not rise to the occasion even though states have promised pro-active measures.
"The issue of price rise has been there for quite some time. The Centre has convened a meeting with states to tackle price rise but I don't see any action plan ready with the Centre to check the price rise," he said.
He charged the Centre with mismanaging the situation by not making exports and imports at appropriate time.
Modi said that the 10 per cent of the agriculture produce gets wasted due to absence of proper storage facilities and 30 per cent keep lying in the open space.
Modi claimed that out of total raids conducted against hoarders, as much as 83 per cent was shared by non-UPA states while only 13 per cent was done in UPA-ruled states.
The Gujarat Chief Minister said that the state has nine lakh tonne of salts lying but it is not being transported to other parts of the country because of lack of railway facilities.