Centre hikes usage charges for gunny bags by 40% to Rs 10.22 per used bag

New Delhi: Aimed at providing financial relief to States and Union Territories as well as improving procurement operations, the Centre on Friday increased usage charges for gunny bags by 40 per cent to Rs 10.22 per used bag.

"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," Union Food and Consumer Affairs Minister Pralhad Joshi said here.

The decision is aimed at ensuring smooth procurement operations and supporting sustainable packaging practices, he said, adding that the Centre-State cooperation would also improve in foodgrain procurement and distribution.

The Centre received requests from various states and UTs for the revision. The Department of Food and Public Distribution, under the Food and Consumer Affairs, constituted a committee to look into this issue.

"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 statement said.

The usage charges for used gunny bags are increased in proportion to the rise in the cost of new gunny bags from KMS (kharif marketing season) 2017-18 to KMS 2024-25. The revised rate is applicable from KMS 2025-26 onwards.

User charges are the fixed cost per used jute bag notified by the Centre.

Initially, procuring agencies like the FCI or state agencies bear the expenditure on the purchase of used jute bags. Later, the Government of India (GoI) reimburses these agencies at an approved rate under the Central Pool operations as part of procurement incidentals.