Food Ministry Raises Gunny Bag Usage Charges by 40% to Rs 10.22 for Improved Procurement

The Indian government has raised the charges for using gunny bags by 40%, now set at Rs 10.22 per bag. This adjustment aims to provide financial support to States and Union Territories and enhance procurement processes. Union Food and Consumer Affairs Minister Pralhad Joshi stated that this move will aid in smooth procurement operations and promote sustainable packaging practices.

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Requests from various states and Union Territories prompted the Centre to review the charges. The Department of Food and Public Distribution formed a committee, including members from State Governments, Union Territories, and the Food Corporation of India (FCI), to assess packaging costs comprehensively. States like Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana contributed their insights to this committee.

Gunny Bag Charges Revision

Based on the committee's recommendations, the government revised the usage charges from Rs 7.32 to Rs 10.22 per used bag or the actual cost incurred by the State Government or Union Territory, whichever is lower. This change reflects the increase in new gunny bag costs from the Kharif Marketing Season (KMS) 2017-18 to KMS 2024-25. The new rate will be effective from KMS 2025-26 onwards.

User charges are predetermined costs per used jute bag set by the Centre. Initially, agencies like FCI or state bodies cover the expenses for purchasing used jute bags. Subsequently, these agencies receive reimbursement from the Government of India at an approved rate under Central Pool operations as part of procurement incidentals.

The revision aims to strengthen Centre-State cooperation in foodgrain procurement and distribution. By addressing financial concerns related to packaging, it seeks to streamline operations across different regions. This initiative is expected to foster better collaboration between central and state authorities in managing food supplies efficiently.

In summary, this decision reflects a strategic approach to address rising costs while ensuring effective procurement practices nationwide. By adjusting usage charges for gunny bags, the government aims to balance financial relief with operational efficiency in food distribution systems across India.

With inputs from PTI