Gunny bag charges: Centre hikes usage rate by 40% to Rs 10.22 per bag; to aid procurement

The Centre on Friday increased usage charges for gunny bags by 40% to Rs 10.22 per used bag, a step aimed at easing the financial burden of states and Union Territories while ensuring smoother procurement operations.Union food and consumer affairs minister Pralhad Joshi said in a statement that the “Government of India has increased usage charges for gunny bags by nearly 40 per cent, bringing financial relief to State Governments and Union Territories in the country.” He added that the move would also strengthen Centre–state cooperation in foodgrain procurement and distribution while promoting sustainable packaging practices, PTI reported.The decision follows multiple requests from states and UTs for a revision. To examine the issue, the Department of Food and Public Distribution constituted a committee that included representatives from state governments, UTs and the Food Corporation of India (FCI). States such as Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh and Haryana submitted suggestions to the panel.“On the basis of recommendations of the committee, the Government of India has revised usage charges from Rs 7.32 per used bag to Rs 10.22 per used bag or the actual cost incurred by the State Govt/UT, whichever is lower,” the official statement said.

The usage charges for used gunny bags have been increased in proportion to the rise in the cost of new bags from the kharif marketing season (KMS) 2017-18 to KMS 2024-25. The revised rate will apply from KMS 2025-26 onwards.User charges are the fixed cost per used jute bag notified by the Centre. Initially, procuring agencies such as the FCI or state agencies bear the expenditure on purchasing used jute bags. Later, the government reimburses them at the approved rate under Central Pool operations as part of procurement incidentals.