Date: 2025-08-29Category: Not ApplicableState: Union GovernmentCountry: India
Centre increases usage charges of Gunny Bags by nearly 40%, bringing financial relief to State Governments/UTs: Union Food and Consumer Affairs Minister
**Summary:**
On August 29, 2025, the Ministry of Consumer Affairs, Food and Public Distribution announced an increase in the usage charges for gunny bags used in foodgrain procurement and distribution. The revision, amounting to nearly 40%, is intended to provide financial relief to State Governments and Union Territories (UTs) and support sustainable packaging practices. The decision follows requests from various States and UTs and is based on the recommendations of a committee comprising members from State Governments/UTs (Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh and Haryana) and the Food Corporation of India (FCI). The committee conducted a comprehensive review of packaging charges. The revised usage charges are set at Rs. 10.22 per used bag, or the actual cost incurred by the State Government/UT, whichever is lower, increased from Rs. 7.32. This adjustment is proportional to the increase in the cost of new gunny bags from KMS 2017-18 to KMS 2024-25. The revised rate is applicable from KMS 2025-26 onwards. The contact persons for further information are Abhishek Dayal and Nihi Sharma. The Release ID is 2161910.
Key Entities Referenced
Ministry of Consumer Affairs, Food Public Distribution: The central ministry responsible for consumer affairs, food, and public distribution in India.
Pralhad Joshi: Union Minister of Consumer Affairs, Food and Public Distribution.
Department of Food and Public Distribution: A department under the Government of India involved in food and public distribution.
Food Corporation of India FCI: An organization involved in the procurement and distribution of food grains in India.
Andhra Pradesh: A state in India that provided suggestions to the committee.
Punjab: A state in India that provided suggestions to the committee.
Madhya Pradesh: A state in India that provided suggestions to the committee.
Telangana: A state in India that provided suggestions to the committee.
Uttar Pradesh: A state in India that provided suggestions to the committee.
Haryana: A state in India that provided suggestions to the committee.
KMS 201718: Refers to the Kharif Marketing Season 2017-2018.
KMS 202425: Refers to the Kharif Marketing Season 2024-2025.
KMS 202526: Refers to the Kharif Marketing Season 2025-2026.
Ministry of Consumer Affairs, Food & Public Distribution
Centre increases usage charges of Gunny Bags by
nearly 40%, bringing financial relief to State
Governments/UTs: Union Food and Consumer
Affairs Minister
Posted On: 29 AUG 2025 5:40PM by PIB Delhi
Government of India has increased usage charges for gunny bags by nearly 40% bringing financial relief to
State Governments and Union Territories in the country, said Union Minister of Consumer Affairs, Food and
Public Distribution, Shri Pralhad Joshi here today.
The decision is aimed at ensuring smooth procurement operations thereby, supporting sustainable packaging
practices while strengthening Centre–State cooperation in foodgrain procurement and distribution, he said.
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. 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 committee, 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.
Usage charges per bag (in
Procurement season % increase
Rs.)
From KMS 2018-19 to KMS 2024-
7.32
25/RMS 2025-26
39.60%
From KMS 2025-26 onwards 10.22
****
Abhishek Dayal/Nihi Sharma
(Release ID: 2161910)