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Key Points

The Centre has increased gunny bag usage charges by nearly 40% to provide financial relief to state governments. This decision follows recommendations from a committee comprising state representatives and FCI members. The move aims to support sustainable packaging practices in foodgrain procurement. The revised rates will be effective from the 2025-26 marketing season onwards.

Key Points: Centre Hikes Gunny Bag Charges 40% to Aid State Governments

  • Usage charges increased from Rs 7.32 to Rs 10.22 per bag
  • Committee formed with state representatives and FCI members
  • Relief for states engaged in foodgrain procurement
  • Revised rates effective from KMS 2025-26 season
2 min read

Centre increases usage charges of Gunny Bags by nearly 40 pc; provides financial relief to State Governments, UTs: Pralhad Joshi

Union Minister Pralhad Joshi announces 40% increase in gunny bag usage charges to provide financial relief to states and UTs for foodgrain procurement operations.

"The decision is aimed at ensuring smooth procurement operations thereby, supporting sustainable packaging practices - Pralhad Joshi"

New Delhi, August 29

The Government of India has increased usage charges for gunny bags by nearly 40 per cent providing financial relief to State Governments and Union Territories in the country, said Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi here on Friday.

Joshi said, "The decision is aimed at ensuring smooth procurement operations thereby, supporting sustainable packaging practices while strengthening Centre-State cooperation in foodgrain procurement and distribution."

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 members from State Governments/UTs and Food Corporation of India (FCI) for a 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 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, 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.

Pralhad Joshi had on August 24 said that Punjab Chief Minister Bhagwant Mann should act against "diversion" and "misuse of food" meant for the poor instead of making allegations on the Central Government of "foodgrain theft."

The Union Minister said the Mann government should act instead of making allegations against the Centre for illegal diversion and misuse of foodgrains meant for the poor.

After allegations of 'vote theft', Punjab Chief Minister Bhagwant Mann has now accused the Central Government of 'foodgrain theft'. The Chief Minister alleged that the Centre is conspiring to block Punjab's share of the Public Distribution System (PDS) ration.

Mann claimed that the Bharatiya Janata Party (BJP)-led Central Government wants to snatch free ration from the poor of the state. He said Punjab has a total of 1.53 crore ration card holders, out of which there is a plan to stop free ration for 55 lakh people.

According to the Chief Minister, in July, free ration for 23 lakh people was stopped under the pretext of e-KYC, and now there is a threat to block ration for another 32 lakh people from September 30.

- ANI

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Reader Comments

P
Priya S
But will this increased cost eventually be passed on to farmers or consumers? We need transparency in how these charges affect the entire supply chain. Hope states use this relief properly.
A
Aman W
The timing is interesting given the ongoing tussle with Punjab government. While the financial relief is welcome, the political undertones cannot be ignored. Centre-state cooperation should be above politics when it comes to food distribution.
S
Suresh O
As someone from Andhra, I'm glad our state was consulted in this process. The committee approach with multiple states involved shows collaborative federalism working. Hope this helps streamline procurement operations across states.
N
Nisha Z
The e-KYC issue for ration cards is a genuine concern though. While we need to prevent diversion, cutting off 55 lakh people from ration is too harsh. There must be a better way to verify without depriving the needy.
K
Karthik V
Good move! The gunny bag industry has been struggling with rising raw material costs. This revision was long overdue. Hope this helps sustain the jute industry and supports our farmers indirectly 🎯

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