Procurement of Gunny Bags

The Ministry of Textile has drawn up the following guidelines for purchase of jute bags by Government agencies for packaging of food grains:

·FCI and State Agencies procures jute bags through Office of Jute Commissioner (JC), Kolkata after assessing the month wise requirement coordinated by this department before each marketing season i.e. Rabi and Kharif. After assessment, the indents are placed along with funds on Office of Jute Commissioner (JC), Kolkata. Production Control cum Supply Orders (PCSOs) are issued by JC directing manufacturers to produce jute bags of specified quality and quantity. Price payable for such supply is fixed by the Jute Commissioner’s office using the Tariff Commissioner formula.

·Inspection of jute bags is done by Consignee or through inspecting agencies listed by JC and selected/hired by State agencies. Pre dispatch inspection is performed as per BIS specifications.

·JC/FCI/other Government Agencies have the option to purchase jute bags through National Competitive Bidding (open tender) provided that the purchase price of jute bags through such tender does not exceed the price fixed by the Jute Commissioner on the basis of Tariff Commission formula.

Policy on use of Once used Gunny bags

In order to maintain transparency & proper monitoring of procurement of jute bags, Government of India vide letter dated 18.05.2017 has issued guidelines to provide usage charges to States/FCI for packaging of procured paddy, superceding earlier policy of gunny depreciation.

Guidelines for usage charges for packaging of procured paddy dated-18.05.2017

Considering the practical problems faced by States w.r.t conditions specified in usage charge in letter dated 05.10.2017, the Department vide letter dated 13.12.2018 fixed the usage charges for packaging of paddy for KMS 2018-19 and onwards as Rs 7.32/bag or the actual cost incurred by the State Govt, if it is lower than Rs 7.32/bag.

Guidelines for usage charges for packaging of procured paddy dated-13.12.2018