Food Ministry raises gunny bag usage charges by 40%

The Government of India's Food and Consumer Affairs Ministry has increased the usage charges for gunny bags by nearly 40%. The new rate is INR 10.22 per used bag, up from the previous rate of INR 7.32, a decision aimed at supporting sustainable packaging practices in India. This change, which is effective from the Kharif marketing season (KMS) 2025-26, is a response to requests from various states and union territories.

The decision follows a comprehensive review by a committee that included members from state governments and the Food Corporation of India (FCI). The decision seeks to ensure smooth procurement operations and strengthen cooperation between the central government and states in foodgrain procurement and distribution.

The committee received suggestions from the state governments of Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana. According to an official statement from Union Food Minister Pralhad Joshi, the increase aims to provide financial relief to states and improve foodgrain procurement operations.

The new charge will be INR 10.22 per used bag or the actual cost incurred by the state or union territory, whichever is lower. This revision is proportional to the rise in the cost of new gunny bags between the KMS 2017-18 and KMS 2024-25.