Union Government has increased usage charges for gunny bags by nearly 40%, providing much-needed financial relief to State Governments and Union Territories, Union Minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, announced on Friday (August 29, 2025). The decision aims to ensure smooth procurement operations, support sustainable packaging practices, and strengthen Centre-State cooperation in the distribution of foodgrains.
The move follows requests from several States and UTs for a revision in usage charges. In response, Department of Food and Public Distribution constituted a committee comprising representatives from State Governments and Food Corporation of India (FCI) to review packaging costs. States including Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana provided their inputs to the committee.
Based on the committee’s recommendations, government has revised the usage charges for used gunny bags from Rs. 7.32 per bag to Rs. 10.22 per bag, or the actual cost incurred by the State or UT, whichever is lower. The hike reflects the increase in the cost of new gunny bags from KMS 2017-18 to KMS 2024-25. The revised rates will be effective from KMS 2025-26 onwards.
The revision is expected to help States and UTs manage procurement costs more efficiently during the foodgrain procurement season, while also promoting environmentally sustainable packaging practices.
