Centre increases usage charges of Gunny Bags by nearly 40%, bringing financial relief to State Governments/UTs: Union Food and Consumer Affairs Minister
Centre increases usage charges of Gunny Bags by nearly 40%, bringing financial relief to State Governments/UTs: Union Food and Consumer Affairs Minister
Government of India has increased usage charges for gunny bags by nearly 40% bringing financial relief to State Governments and Union Territories in the country, said Union Minister of Consumer Affairs, Food and Public Distribution, Shri Pralhad Joshi here today.
The decision is aimed at ensuring smooth procurement operations thereby, supporting sustainable packaging practices while strengthening Centre–State cooperation in foodgrain procurement and distribution, he said.
The Centre received requests from various States and UTs for the revision following which, the Department of Food and Public Distribution, GoI, constituted a committee. The committee comprised of members from State Governments/UTs and Food Corporation of India (FCI) for comprehensive review of packaging charges. State Government of Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh and Haryana provided their suggestions to the committee.
On the basis of recommendations of committee, 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, which ever lower. The usage charges for used gunny bags are increased in proportion to increase in cost of new gunny bags from KMS 2017-18 to KMS 2024-25. The revised rate is applicable from KMS 2025-26 onwards.
Procurement season
Usage charges per bag (in Rs.)
% increase
From KMS 2018-19 to KMS 2024-25/RMS 2025-26
7.32
39.60%
From KMS 2025-26 onwards
10.22