Did the Government Really Increase Gunny Bag Usage Charges by 40%?
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Synopsis
In a significant move, the government has increased the usage charges of gunny bags by 40%, providing crucial financial support to states and UTs. This decision aims to ease procurement operations while ensuring sustainable practices. The revised rates come into effect from KMS 2025-26, reflecting increased costs and stabilizing wheat prices ahead of the festive season.
Key Takeaways
- Government increased gunny bag usage charges by 40%
- Revised charges effective from KMS 2025-26
- Supports sustainable packaging practices
- Stabilizes wheat prices ahead of festive season
- Encourages Centre-State cooperation in procurement
New Delhi, Aug 30 (NationPress) The government has raised the usage fees for gunny bags by approximately 40 percent, providing financial relief to state governments and union territories (UTs). The revised charges have been adjusted from Rs 7.32 per used bag to Rs 10.22 per bag or the actual cost incurred by the state government/UT, whichever is lower.
The increase in usage charges correlates with the rise in the cost of new gunny bags from Kharif Marketing Season (KMS) 2017-18 to KMS 2024-25. This updated rate will be effective starting from KMS 2025-26.
According to Pralhad Joshi, the Minister of Consumer Affairs, Food and Public Distribution, this decision is designed to facilitate smooth procurement operations while enhancing sustainable packaging practices and strengthening cooperation between the Centre and states in foodgrain procurement and distribution.
The Centre received several requests from various states and UTs for this revision, prompting the Department of Food and Public Distribution, GoI, to form a committee. This committee included representatives from state governments/UTs and the Food Corporation of India (FCI) for a thorough review of packaging charges.
States such as Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana contributed their recommendations to the committee.
Earlier this week, in a bid to stabilize wheat prices ahead of the festive season, the Central Government decided to lower the wheat stock limit for wholesale and retail traders as well as processors across all States and UTs until March 31, 2026.
The wheat stock limit for wholesalers has been reduced to 2,000 metric tonnes (MT) from 3,000 MT, while for retailers, it has been decreased to 8 MT per retail outlet from 10 MT. For wheat processors, the limit is now set to 60 percent of the monthly installed capacity (MIC) multiplied by the remaining months of FY 2025-26, down from 70 percent.
These stock limits are part of the government's strategy to manage overall food security and to combat hoarding and unfair speculation that leads to inflated prices through artificial scarcity.
Point of View
The government's decision to raise gunny bag usage charges by 40% is a strategic move aimed at enhancing procurement efficiency and supporting state governments. This action reflects a commitment to sustainable practices while addressing the rising costs of agricultural packaging. The steps taken to stabilize wheat prices further indicate a proactive approach towards ensuring food security.
NationPress
30/08/2025
Frequently Asked Questions
What prompted the government to increase gunny bag usage charges?
The increase was prompted by rising costs of new gunny bags and requests from various states and UTs for a revision in charges.
When will the new usage charges come into effect?
The revised rates will be applicable starting from KMS 2025-26.
How does this decision affect wheat prices?
The government's move also aims to stabilize wheat prices ahead of the festive season by managing stock limits.
Which states contributed suggestions for the increase?
States like Andhra Pradesh, Punjab, Madhya Pradesh, Telangana, Uttar Pradesh, and Haryana provided input to the committee.
What is the purpose of the new stock limits on wheat?
The stock limits are intended to manage food security and prevent hoarding that inflates prices.
