The Government of India has increased usage charges for gunny bags by nearly 40%, bringing financial relief to State Governments and Union Territories across the country, Union Minister of Consumer Affairs, Food & Public Distribution Prahlad Joshi announced in a statement.
The decision is aimed at ensuring smooth procurement operations, thereby supporting sustainable packaging practices while also strengthening Centre–State cooperation in foodgrain procurement and distribution.
Following requests from various States and UTs for a revision of charges, the Department of Food and Public Distribution constituted a committee comprising representatives from State Governments/UTs and the Food Corporation of India (FCI) to conduct a comprehensive review of packaging charges. The State Governments of Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana submitted their suggestions to the committee.
Based on the committee’s recommendations, the Government of India has revised the usage charges from ₹7.32 per used bag to ₹10.22 per used bag or the actual cost incurred by the State Government/UT, whichever is lower.
The increase in usage charges reflects the proportional rise in the cost of new gunny bags from KMS 2017–18 to KMS 2024–25. The revised rate will be applicable from KMS 2025–26 onwards.