Introduction of India Post Last Mile Service & Tariff Revision for India Post Parcel and Speed Post Parcel

Order No.: 39-09/2025-PD
Issued by: Government of India, Ministry of Communications, Department of Posts, Parcel Directorate
Date: 31.07.2026

Objective

The Department of Posts has introduced significant reforms in its parcel business to:

Transform India Post into a competitive logistics service provider.
Align parcel services with the growing e-commerce market.
Introduce customer-centric and market-based pricing.
Standardize tariffs for India Post Parcel and Speed Post Parcel.
Improve revenue through a rationalized discount structure.

Major Decisions

1. Introduction of India Post Parcel Last Mile Service

Effective from: 01.08.2026

The new India Post Parcel Last Mile service has been introduced exclusively for bulk/corporate contractual customers requiring delivery within the local jurisdiction.

Key Features

Booking at the delivery post office, identified parcel hub or parcel processing centre.
Available only for customers having agreements with the Department.
Maximum parcel weight: 5 kg.
Charges based on higher of gross weight or volumetric weight.
Value Added Services (POD, Insurance, COD etc.) available on applicable charges.
Door delivery to the specified address.
Compensation provisions same as India Post Parcel.

Last Mile Tariff

Weight	Delivery Office	Parcel Hub/PPC
Up to 2 kg	₹15	₹20
2–5 kg	₹22	₹35

GST applicable as per rules.

2. Rationalisation of Parcel Tariff

A new distance-based tariff structure has been introduced for:

India Post Parcel (Retail)
India Post Parcel (Contractual)
Speed Post Parcel

The revised tariff aims to:

Align India Post rates with market practices.
Bring uniformity in pricing.
Replace the earlier non-distance-linked retail tariff.
Differentiate pricing for retail and bulk customers.

3. Rationalisation of Discount Structure

Since the tariff structure has been revised, the existing discount structure has also been rationalized.

The revised discounts are linked to monthly business revenue, encouraging higher parcel volumes from business customers.

Effective from: 01.08.2026

Operational Instructions

Circles have been instructed to:

Publicize the revised tariffs widely.
Inform existing and prospective business customers.
Increase onboarding of contractual customers.
Boost parcel business through the new pricing and Last Mile service.

Regulatory Amendment

Necessary amendments have been made to the Post Office Regulations, 2024 through:

Gazette Notification: S.O. 4241(E)
Date: 31.07.2026
Gazette ID: CG-DL-E-31072026-275011

Key Highlights

✅ India Post Parcel Last Mile service launched for contractual customers.
✅ Local last-mile delivery at affordable rates.
✅ Maximum parcel weight limited to 5 kg.
✅ Uniform, market-aligned tariff structure introduced.
✅ Discount structure revised based on monthly revenue.
✅ Effective implementation from 01 August 2026.
✅ Circles directed to promote the new services and attract more parcel business.

Introduction of India Post Last Mile Service & Tariff Revision for India Post Parcel and Speed Post Parcel