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Key Points

The government has significantly increased gunny bag usage charges by nearly 40% to provide financial relief to states and union territories. This revision from Rs 7.32 to Rs 10.22 per bag reflects cost increases since 2017-18 and will apply from KMS 2025-26 onward. Minister Pralhad Joshi stated this move ensures smooth procurement operations and supports sustainable packaging practices. The decision follows requests from states and recommendations from a committee comprising state representatives and FCI members.

Key Points: Govt Hikes Gunny Bag Usage Charges 40% Bringing States Relief

  • Usage charges increased from Rs 7.32 to Rs 10.22 per used gunny bag
  • Relief provided to state governments and union territories
  • Committee formed with state and FCI representatives
  • Revision based on cost increase from KMS 2017-18 to 2024-25
2 min read

Govt hikes usage charges of gunny bags by 40 pc in relief to states, UTs

Government increases gunny bag usage charges from Rs 7.32 to Rs 10.22 per bag, providing financial relief to states and UTs for procurement operations.

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

New Delhi, Aug 30

The government has increased usage charges for gunny bags by nearly 40 per cent, bringing financial relief to state governments and union territories (UTs).

The government 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 government/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.

According to Minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, 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 of members from state governments/UTs and Food Corporation of India (FCI) for comprehensive review of packaging charges.

Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh and Haryana provided their suggestions to the committee.

Earlier this week, as part of continuous efforts to moderate prices of wheat before the upcoming festive season, the Central Government decided to reduce the wheat stock limit applicable to wholesale and retail traders as well as processors in all States and Union Territories until March 31, 2026.

The stock limit of wheat for wholesalers has been reduced to 2,000 metric tonnes (MT) from 3,000 MT earlier, while in the case of retailers, the stock limit has been cut to 8 MT for each retail outlet from 10 MT earlier, according to a statement issued by the Ministry of Consumer Affairs, Food and Public Distribution.

Similarly, for wheat processors, the wheat stock limit has been scaled down to 60 per cent of the monthly installed capacity (MIC) multiplied by the remaining months of FY 2025-26.

Earlier, the limit was fixed at 70 per cent of the monthly installed capacity multiplied by the remaining months of FY 2025-26.

The stock limits are imposed as part of the government’s policy to manage overall food security and to prevent hoarding and unscrupulous speculation that drives up prices by creating an artificial scarcity.

—IANS

- IANS

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Reader Comments

P
Priya S
This will definitely help farmers in the long run. When states save on packaging costs, it eventually benefits the agricultural community. Good move!
M
Michael C
While the increase is welcome, I hope this doesn't lead to increased costs for end consumers. The government should monitor price movements carefully.
S
Suresh O
Appreciate that they formed a committee with state representatives. Cooperative federalism in action! 🇮🇳
N
Neha E
The wheat stock limit reduction is more important news here! This will help control prices during festivals. Diwali shopping just got better 🪔
A
Aman W
Hope this doesn't become another bureaucratic exercise. Implementation is key - states should actually see the benefit on ground level.

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