Gunny bag rates revised to ₹10.22 effective from the kharif marketing season 2025-26
New Delhi: The Indian government has announced a 40% increase in the usage charges for gunny bags, raising the rate from ₹7.32 to ₹10.22 per used bag, effective from the Kharif Marketing Season (KMS) 2025-26. This decision aims to alleviate financial pressures on State Governments and Union Territories (UTs)and facilitate smoother procurement operations.
The revision follows requests from various states and UTs, prompting the Department of Food and Public Distribution to form a committee comprising members from State Governments, Union Territories, and the Food Corporation of India (FCI). States such as Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana submitted their suggestions to the committee. Based on the committee’s recommendations, the usage charges have been adjusted in proportion to the increase in the cost of new gunny bags from KMS 2017-18 to KMS 2024-25.
The revised charges are applicable from KMS 2025-26 onwards, with the new rate set at ₹10.22 per used bag or the actual cost incurred by the State Government or Union Territory, whichever is lower. This adjustment is expected to facilitate smoother procurement operations and contribute to more sustainable packaging practices in the foodgrain sector.
The gunny bag industry in India is a major component of the country’s agricultural logistics system. India produces around 100 lakh bales of raw jute annually, supporting approximately 4 million farmers and workers involved in jute cultivation and processing. The country has approximately 73 jute mills, primarily located in West Bengal, Bihar, Assam, and Odisha, which manufacture jute products, including bags used for storing and transporting food grains. The domestic demand for gunny bags is largely driven by government procurement agencies, such as the Food Corporation of India, as well as private agricultural and industrial sectors.
The increase in usage charges follows rising costs of raw jute and jute products over the last several years. The adjustment from ₹7.32 to ₹10.22 per used bag reflects the actual cost increase of new gunny bags between KMS 2017-18 and KMS 2024-25. The revised rate is set to take effect from KMS 2025-26 and will be applied to procurement operations by State Governments, Union Territories, and other designated agencies, ensuring alignment with current production and supply costs.
The Indian Jute Mills Association (IJMA) has previously highlighted the need for revisions in pricing structures to address financial constraints faced by mills. In a meeting with the Standing Advisory Committee in July 2024, the IJMA urged immediate government intervention in enforcing 100% reservation norms in foodgrain and sugar packaging for the 2024-25 period. The association also discussed the impact of the Government e-Marketplace (GeM) portal pricing cap and the need for stricter compliance with labour laws and wage agreements.
While the recent increase in usage charges is a step toward addressing some of the financial challenges faced by the gunny bag industry, it remains to be seen whether this adjustment fully meets the industry’s demands for sustainable pricing and procurement practices.
– global bihari bureau
